When financial emergencies arise, you may find yourself in need of quick cash. Same-day loans can provide access to emergency funds when you need them. However they should be used with caution as they may come with significant risks.
Let’s explore what same-day loans are, how they work and where you can find them. Understanding these types of loans can help you make the right decision about whether a same-day loan is the best choice for your situation.
What is a same-day loan?
Same-day loans allow borrowers to access emergency funds quickly — typically on the same business day. These loans often come with a short approval process. While they can provide a lifeline in financial emergencies, borrowers should be aware that they often come with high interest rates, making them a costly option. As with any financial situation, you should carefully consider your options and alternatives before making a decision.
How do same-day loans work?
Typically, you’ll start by filling out an in-personal or online application. This will ask you to provide some necessary information such as proof of income, employment status and banking information.
After filling out the loan application, the lender will assess a borrower’s eligibility. Lenders like CashNetUSA often do alternative credit checks to evaluate your overall financial situation rather than relying on traditional credit scores. This makes borrowing more accessible to borrowers with bad credit. If the lender approves you, the money will be deposited into your bank account — often on the same business day as long as certain requirements are met.
After funding, you will need to repay the loan according to loan terms. This can look very different depending on what type of loan you choose. A same-day personal loan may allow you to spread repayment out over a longer period.
Where can I get a same-day loan?
There are many lenders that offer same-day loans. Online lenders, like CashNetUSA, are often some of the most convenient and quickest options. They often have a fast application process and quick approval times. However, you should do your research before choosing a lender and ensure you’re applying with a reputable financial institution that fits your needs.
CashNetUSA may be able to offer same-day loans in several locations:
Visit our Rates and Terms page to see the availability and options specific to your location.
Types of same-day loans
There are many different same-day loan options available and each comes with their own risks. However, some options may be better than others for borrowers in emergency situations. Keep in mind that it’s unlikely to find these financing options offered by traditional banks and credit unions. Additionally many of these options come with higher interest rates and less favorable terms. Borrowers should carefully consider all their options before deciding to take on one of these emergency loans.
Payday loan alternatives
Payday loans often come with high interest rates and very short-terms, which can make them extremely difficult to repay, resulting in late fees and increasing the cost of borrowing. Payday loans are small, short-term loans. They typically have high interest rates and usually need to be repaid in full on the borrowers next payday. The short repayment schedule combined with the high cost of borrowing can make it difficult for many to repay the loan. This can cause borrowers to either roll over the loan or take out a new loan to cover the cost — further increasing the cost of borrowing. However, there are payday loan alternatives that can offer more manageable repayment terms.
Installment loan. Installment loans offer borrowers an upfront lump sum of cash that can be paid back over time through a set repayment schedule. They often offer higher loan amounts than payday loans and more flexibility with repayment. However, borrowers should be aware that these types of personal loans still often come with high interest rates.
Line of credit. Lines of credit allow borrowers access to funds up to a set credit limit. They work similarly to a credit card since they are also a type of revolving credit — meaning as you repay the funds you borrow, they become available to draw again. However, lines of credit that offer same-day funding often come with high interest rates and can be an expensive form of borrowing.
Cash advances
“Cash advance” can refer to a few different types of borrowing. The first is a credit card cash advance. This allows you to borrow a certain amount of cash against your credit card’s credit limit. This typically comes with fees and interest is charged at a higher rate. It also has an impact on your credit utilization which has negative impacts on your credit.
Be wary of cash advance apps which are services that allow you to borrow a small amount from your next paycheck as these apps often charge a fee service and the cost of borrowing isn’t normally expressed by an annual percentage rate — which can make it difficult to determine the cost of borrowing.
Title loans
Title loans are a type of secured loan that uses your vehicle as collateral. Typically the loan provider will offer a lump sum of cash and in return they will hold your car title. Like payday loans, title loans often have short repayment periods and may need to be repaid in full. If the borrower fails to repay the loan, the loan provider can seize and sell the vehicle to recoup their losses.
Pawn shop loans
Some pawn shops will allow you to borrow money in exchange for an item of value. They’ll typically allow you to borrow a certain percentage of the item’s value. When the loan is repaid, the borrower will get their item back. However, if the borrower fails to repay the loan the shop will sell the item to get their money back.
Related Articles
