What if you ended up to your eyeballs in debt, all because you didn’t understand what you were getting into?
This sounds like a terrible situation that no one would ever choose. However, countless people take out the wrong loans for their situation each and every day.
Then again, a loan is only “wrong” if it doesn’t fit your needs and your situation. That’s why things like same day loans can be either a blessing or a curse.
If you need to borrow money and are considering a same day loan, you need to verify that it’s your best financial option. Keep reading to discover our comprehensive guide to same day loan “do’s” and “don’ts.”
What Is a Same Day Loan?
We’ve put together a very solid guide for what to do and what not to do when it comes to same day loans. First, though, it’s important that you understand what same day loans actually are.
As the name implies, a “same day loan” is a loan with a short term that allows you to retrieve your money very quickly. In many cases, you can get it on the same day you apply (hence, the name).
If the term “same day loan” doesn’t ring a bell, you may be familiar with another term for these loans. These are the same as “payday loans” which take their name from the typical requirement of paying the loan back within thirty days.
What Are the Benefits of a Same Day Loan?
Now that you know what a same day loan is, you may wonder if it’s the right type of loan for your needs. That’s why it’s important to understand the specific benefits that such loans are able to provide.
First, there’s the speed. This is the main draw of a same day loan: if you need money and you need it quickly, there is no better option available to you.
Second, such loans typically have a very low credit requirement. If you have credit that is bad or simply low, you can apply for such loans with confidence.
Finally, you have a variety of possible same day loan vendors. With options that are online, offline or both, it’s never been easier or more convenient for you to take out one of these loans.
What Are the Drawbacks of a Same Day Loan?
There is no denying that same day loans have a number of exciting benefits. But as we said earlier, no loan is perfect for every need. That’s why it’s important to understand the potential drawbacks of these loans when you borrow money.
The first issue is that such loans must be paid back very quickly. Depending on how much money you need to borrow, you may want to have a longer time to pay back the money that you owe.
A second issue is a high-interest rate. Typically, same day loans have a much higher interest rate than other types of loans. So despite borrowing the money for a short period of time, you’ll end up paying back more than you might expect.
Finally, it can be difficult for you to find the right lender. While there are many trustworthy institutions offering same day loans, there are also unscrupulous vendors who will try to take advantage of you.
Remember, you should only borrow money from vendors that you can trust!
Our List of Same Day “Do’s”
Now you know the assorted pros and cons of same day loans. And if you’re committed to borrowing money in this way, you need to understand our list of same day “do’s.”
First, don’t forget to review your options. Because there are so many different lenders for same day loans, you can afford to “shop around” and find the loan that is best for you.
Second, be sure to ask yourself a simple question: “is the high-interest rate worth it?” Some people take out a same day loan when they would have been better off using one of their credit cards, as that interest rate is potentially lower.
Finally, if you’re not already doing so, you need to create a budget. Your same day loan will have specific terms for how much is owed and when it is due: it’s important that you have budgeted the money that is necessary to pay it off!
Our List of Same Day “Don’ts”
You can apply for a same day loan the smart way by following our list of same day “do’s.” However, it’s equally important to understand what you should avoid doing with these loans.
First, don’t skip the fine print. Many people end up with unexpectedly high debt because they didn’t fully understand the terms and conditions of their loan.
Second, don’t forget your rights. Nothing is official with your same day loan until you have signed for it, and nobody can compel you to sign it. Don’t let a pushy lender bully you!
Finally, don’t use these loans on silly stuff. A same day loan is best used when there is a financial or medical emergency going on. Using it for frivolous purchases is a decision that you and your wallet will soon regret!
Alternatives When You Need to Borrow Money
Like we said, the same day loan may be a perfect solution for your needs or it may not be. That’s why it’s important to understand possible alternatives before you borrow money.
First, there are traditional loans that you can get through institutions such as your bank. You may be able to get a secured or even an unsecured loan at a more competitive interest rate than same day loans can offer.
Second, a credit card may be a better option for you. Such cards often have high interest rates, but those rates may be equal to or lower than same day loans, and you have more time to pay it off.
Finally, ask your bank about opening a line of credit. This is a great source of emergency funds, and payments can be easily automated.
The Bottom Line
Now you know how same day loans work if you need to borrow money. But do you know who you should borrow from?
At Bonsai Finance, we are your premier source for any and all financial solutions. To see how we can get your money fast, apply for a same day loan today!