What Are Same Day Loans?
Same day loans are loans that you receive the cash the same day that you apply for the loan. There are many types of same day loans, including payday loans and title loans. Some banks have given same day loans, but this is very rare. These are usually short-term loans and usually come with very high interest rates. These are usually done in the cases of emergencies and when people cannot wait a week or longer to get the money.
You must do your research to find a same day lender because these lenders are often shady. You will have to be careful and find reputable lenders so that you will not be ripped off or scammed. You can check out billigeforbrukslån.no/lån-på-dagen because they have a list of same day lenders that you can trust. They are from out of the country, but they are reputable.
This article will talk a little about same day loans and how you can check them out to make sure they are reputable. You will need to do more research to keep yourself safe from scammers. If anyone asks you for money up front, it is probably a scam, do not fall for it. A reputable lender will not ask for money up front.
How Do Same Day Loans Work?
Same day loans are for small amounts and are for short periods of time, usually just a few months at the most. Some same day loans are listed below:
Payday Loans – A payday loan is one that you get until your next payday. It is usually less than $1,000, usually around $500. You are supposed to pay it back on your next following paycheck, either in a week, two weeks, or a month. You need to supply your banking account information that includes routing numbers, as well as your account number. Some payday lenders will also allow you to use a debit card that is attached to your bank account. That way the lender can take the money from your account directly when the bill is due.
With a payday loan you get your cash in the same day, but there are reasons that you may not want to do this. The interest rate can be as much as 400% and the fees attached can be more, as well. You can also get caught in a never-ending loop of re-borrowing the money time and time again. If you cannot afford to pay it all off and still have money for your other bills, you are likely to rewrite the loan. This often happens for months on end, and you end up paying $30 – $100 per paycheck when this happens.
Title Loans – Title loans can be as bad as payday loans, even worse. With a title loan you are using your car’s title as collateral for the loan. You do not have to pay it all back at once, but you do have to pay monthly. These loans figure out to have about 300% interest on the loans, so you will be paying at least three times the amount of your loan before you are through paying it.
You are also in danger of losing your car if you do not pay your loan. While you can drive it while you are paying for the loan, once you stop paying the loan, they can repossess it. This will leave you without a vehicle, and possibly out of work because you have no vehicle.
Pawn Shop Loans – With a pawn shop loan, you bring something of value into the pawn shop. They will assess the value of your item and then give you between 20% and 60% of its resale value. This can be a quick way of making cash, but you are in danger of losing the item that you brought in. The interest rates on these loans may be as much as 240%. If you fail to make the payments on the loan, the pawn shop will keep your item and resell it for the money.
You need to be careful about pawn shops because not all are reputable. Some will claim that your item is not worth much, give you a lower amount for you item, and then sell it for a much higher price if you fail to pay on it. Do your research to find reputable businesses if you want to use a pawn shop.
Credit Card Cash Advance – Cash advances are available on most major credit cards and might be a less expensive way for you to get quick cash. Unlike a payday loan, title loan, or pawn shop loan, you will probably pay less than 30% for your cash advance. You can even get cash advances at your local ATM if your bank or credit union is closed for the day.
Cash advances can be good if there happens to be some reason that you cannot just use your credit card. You will have to pay the interest on it as soon as you take a cash advance, unlike purchases where you have a grace period.
Bank Loans – Sometimes your bank can give you a same day loan, but it is not very often that this can happen. You have to have the right bank and you should apply early in the morning so that they have time to process you application. Sometimes your bank will have all your information already and just need you to sign paperwork to finish the loan. If this is the case, you can have the money on the same day that you apply.
If you go to a new bank, it is less likely that you will get a loan in the same day since they do not know you and they do not have all your information that they need. It is best to go to a bank that already knows you. With a bank loan, your interest rate should be much lower, usually under 15%.
Lines of Credit – Sometimes it is easier to get a line of credit from a lender. You will still have to apply for the loan, and probably early in the morning if you want it the same day. You could be approved later in the day and have money by evening. You do not have to use all the money in your line of credit at once, it will be available to you for awhile. You do not have to start paying on the full amount until you have used it all. You will only make payments and pay interest on the amount you have used. This might be another idea for you if you are struggling.
Explore Your Options Before You Borrow
In emergencies, sometimes we fail to stop and think about what we are doing. When we need money in an emergency, you will sometimes forget that you can do something as easy as going to your bank to get a loan and you choose the nearest payday loan lender. This is not always the best idea, so you should have a plan of what you should do in case of a monetary emergency. You also should remember that you can always ask family and friends for money in an emergency. If it makes you both feel better, you can also draw up a repayment agreement and have it notarized. This can protect you both in the future.
Make sure that you do some research and read online reviews before you do business with any lender, especially in an emergency situation. Some lenders will try to scam you and take more money that you do not have. Some of these irreputable lenders will ask for cash up front, if they do run from them, they are trying to scam you.
Also read: Why Should You Get an Online Payday Loan?
There are many lenders that are willing to lend you some money in your time of need. Sometimes you will have to pay high interest fees and pay the loan of as quickly as a week. Other times you can get a larger amount of money for a longer period of time with a lower interest rate. You have to be picky about who you choose for all these reasons. You also need to be careful of scammers who are just looking for people who are needy. They will try and take advantage of you if you let them.