When you are looking for a loan, you may be surprised at how many different types of loans are out there. From car loans to student loans, mortgages to personal loans, there are a lot of different categories that your monetary need could fall into. When you start looking at personal loans specifically, you will find even more types of loans! One that may interest you is a same day loan. How does this type of loan work, exactly? It’s time to find out!
What Is a Same Day Loan
A same day loan is straightforward – it is a loan that you can get within the same day you apply. That means you fill out an application, find out if you are approved and the money is in your bank account in a matter of hours. A same day loan is a personal loan which means that your approval relies heavily on your credit history and general financial history.
One caveat is that depending on what time of day you apply for the loan can determine if you really get the money within the same day. While the application and approval process are fast, it may take a full business day to process the money when you get a loan from a bank or other lender. Be sure, when you apply, to verify how long it will really take to get the loan as you may apply today and get the money tomorrow solely due to timing.
There are a few kinds of same day loans that you can choose from, all of which will get you money in a hurry, some faster than others. Each have different rules so look at which same day loan would work best for you.
Online Same Day Loan
There are many lenders online that you can use to get a same day loan. These loans typically follow the same guidelines as any personal loan, requiring an application, a quick credit check and a few fees. The benefit of online loans is that you never need to leave the house! You can get a loan right from your computer and have the money wired into your bank account in no time. This may be the easiest way to get a same day loan and the most clean-cut as there is no collateral involved.
You can search for lenders and compare interest rates on your own time. You can even use online loan calculators to see how much your monthly payments would be an estimate how much you will be approved for. These tools are great for planning your loan before you even apply. Online lenders often d have customer service lines that you can call so if you would like to speak to a real person about your loan, you can!
Payday loans are usually a very short-term loan for a small amount of money. Payday lenders don’t tend to look into your credit history and this can improve your chances of getting a loan if you have poor credit. The lender will assess your income and how much you make per paycheck, then determine the loan quantity you qualify for.
Payday loans can have a higher interest rate. However, if you use a payday loan in a smart way and pay back the money you owe when it is due, they can be a very useful same day loan option! You get the cash you need right away with very few questions asked.
A different type of same day loan is a title loan which again gives you a small amount of money the same day you apply for the loan. Title loans do ask for collateral in the form of your car title. If you do not pay the loan back on time, the lender has a right to take your car as payment. You can be approved for a loan amount that is equal to the value of your car as determined by the lender. The nicer your car, the more money you can get! If you choose to use a title loan, be sure to pay the loan back on time so you can keep the rights to your car.
Pawn Shop Loans
Another way to get cash in a hurry is to bring something that you have that has some monetary value to a pawn shop. The shop will hold your item and give you cash. When you repay the cash loan, you will get your valuable item back. If you don’t pay the loan, the shop will simply keep your item. This is a very straightforward transaction and great example of a same day loan that relies on collateral. Of course, there are fees involved that you should be aware of! A pawn shop may offer you a lower price for your item than you would expect but when you need cash right away, you may have to take what you can get!
Same Day Loan Payments
While many personal loans have the borrower make installment payments over several months or years, same day loans are usually small quantities of money and payments are arranged to be fulfilled in one or two installments. Same day loans are quick to get and should also be quick to repay!
There are many times when a same day loan may be a great option. You will get the cash you need in an instant and can get the money no matter what your credit history. When you decided to get a same day loan, be sure you are aware of the terms, the interest rate and when the loan is due in full. Abide by the loan agreement and you will have a great same day loan experience!