What is Tax Refund Loan, and Should You Get One?
Tax refund loans have become popular in recent years to borrow rapid cash based on anticipated tax refunds. This article seeks to provide an in-depth overview of tax return loans,…
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When life hits you with a surprise expense, time is of the essence. Same day loans can often be a lifesaver. If you’re taking out a loan because you need emergency cash fast, it’s simply not practical to wait around for approval or payment.
Perhaps you’ve lost your job and need to get some money to cover bills, perhaps your car has broken down and you need it to get to work. Maybe you have an emergency medical bill or the boiler broke down in the middle of winter.
Let’s be honest, the list of things that can go wrong is endless. It’s not worth worrying about. Life happens, and when it does, a same day, quick loan can help you get same-day funding to bail you out of an emergency. They can solve your emergency financial problems in an instant when used responsibly.
What exactly is a same day loan?
The concept of a same day loan is simple. It’s a loan that you can request, get approval, and then get the money all within 24 hours. In some cases, you will receive your cash advance in as little as fifteen minutes!
If you need fast cash in an emergency situation, this financial product can come in very handy. These small personal loans can tide us over in times of need. Life is full of little financial ups and downs and the availability of instant loans can be a real lifesaver.
Generally speaking, same day loans are offered by online lenders or in person. Online lenders are faster! Traditional lenders, like banks, are unlikely to be able to offer same-day funding. They probably can’t even offer next business day deposits.
That being said, the online market is saturated with promises of same day loans. Please be careful! Some lenders cleverly use the term ‘same day’ loan to motivate you to get a loan with them. Some lenders promise ‘quick loans same day’ or ‘same day payday loans’.
The things is many of them mean same day approval, not same day deposit. Even though your loan is approved that same day, you may not receive the loan amount then. Always read the fine print and be careful to avoid misleading promises.
If you need the money in the bank account the same day, make sure that the loan you request offers the same day deposit or a same business day deposit!
Another way to get same-day credit would be to take out a secured loan! Securing your same day loan means using something valuable that you own as collateral.
If you fail to meet the loan terms for any reason then you will lose your car, jewelry, or any other valuable item as well as having to repay the loan and any applicable fees.
Did you know...
Some direct lenders may be able to offer you a same day payday loan, regardless of your credit history. Here at Loanza, we can't promise to connect you to one that can do that for you, however, we can promise to search our wide network of lenders to potentially find you one who will may approve your request. We proudly work with reputable direct lending companies in the USA and we could help you with getting the loan you need.
Why would I need a Same Day Loan?
There are many reasons that people might have to rely on the use of same-day funding for example:
- You need cash, now.
- You have a poor credit history so limited borrowing options
- You would prefer not to ask friends or family to help out
- You have reached your credit card limit or do not have one.
Personal loans are for personal situations. You may need to pay medical bills or vet bills, college bills, or just bills in general. It could be a car repair, emergency, a home repair emergency, or any other emergency. The great thing about online lenders is that they will rarely ask you for this personal information.
It’s no one else’s business. What we will say is that same day, short term loans can be a more expensive option and cost more money long term. If you need money in your bank account now they might be the best option.
If there is less of a sense of urgency you may wish to shop around for loans that take longer to receive but may have a lower interest rate or fewer fees attached. If you can, always live within your means. It’s not wise to take out a loan for costs you can cover as the fees are steep.
Whatever the situation, Loanza can help you connect with a lender, with fast lender approval!
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Types of Same Day Loan
We have explained what same day loans are, however, same day loans can still refer to a few different financial products. There are different types of loans that offer same-day credit.
Let’s take a look at your options!
Title Loans
A title loan is a high-interest loan for a small loan amount of credit that can often be deposited on the same day or the next business day.
Title loans require that you use your car as collateral against the loan. When you agree to the loan, the lender will take your car title in exchange for the loan amount. You will not get the title back until the loan, interest, and any applicable fees have been repaid.
This type of loan comes with high risks attached and should only be taken out if you have no other option. Not only will you have to pay a significant amount of money for this loan, but you also risk losing your vehicle.
The costs and interest rates attached to title loans are reportedly some of the most expensive on the market at one scarily high rate.
Pawn Shop Loans
If you own any valuables that you would be willing to risk losing, a pawn shop is another way to get cash quickly. Pawnshops will pay you cash in exchange for your item, usually a lot less than the item is actually worth.
If you do not repay the loan amount in the short time frame agreed your property becomes theirs and they are entitled to sell it on to cover the debt and make a profit.
Payday Loans
A payday loan is typically a short-term loan for a small amount of money. As the name suggests, payday loans are designed to be repaid in full on your next payday.
These days a payday loan can offer considerably more flexibility. The loan amounts are higher and repayment terms mean that you can spread the cost over a few months if necessary.
Payday loans can be taken out both online or in person, of course online offers far more convenience!
Payday loans often have a poor reputation. This is because they are widely recognized as an irresponsible lending option given to borrowers with a poor credit score at unreasonable interest rates.
While there is some truth to this, there are now many direct lenders on the market that you can borrow money from in a more responsible manner.
Interest rates can be higher than traditional loans and lenders with a poor credit score can request this type of loan. That being said if you do your research you will find many companies are now offering credit based on affordability and at much more reasonable rates than their poor reputation would lead you to believe.
Of course, it is important to bear in mind that interest rates, late payment fees and processing fees apply to any form of loan and you must be aware of the additional costs before signing on the dotted line.
Online Direct Lender Loans
A direct lender is a financial institution or private entity that provides loans to borrowers. Online direct lenders are a great financial resource in modern times. Instead of being required to involve a middle man or a loan broker, you go to the credit provider directly saving time and of course even more fees.
An online direct lender does exactly what they say on the tin. They are financial organizations that operate online. If you need money immediately, online loans are fantastic.
Why travel to town and wait in line when you can request a loan online from your phone, in your own home? Especially when you’re in a hurry. Online direct lender loans are a perfect way to get online credit.
When you check an online direct lender you will find that there are several short-term, emergency loan options available. Some of the most common examples are payday loans, short term loans, personal loans.
These products are often very similar. It really depends on your own situations, credit score, and the amount you want to borrow which one is most suitable.
Of course, searching online for the best lender and the best loan for you can be time-consuming… That’s why Loanza exists! You can use our quick online tool to search hundreds of lenders for a suitable loan for you at great rates available! The best part is this service is completely free.
Are There Any Alternatives to Same Day Loans?
Before you commit to a same-day loan, it’s always in your best interest to be aware of and consider the alternatives. All loans come with fees and interest rates attached meaning that they cost you more money long term. While it’s unlikely that alternatives will be available on the same day, they could be a wise option if you have time to wait.
Credit Cards
If you qualify for a credit card then consider getting a credit card and using it to pay for your urgent expense. It is unlikely that you will have your request processed and receive the card on the same day but if you can wait then it’s certainly an option. The interest rates long term could be much less than for a same day loan!
It is important to remember that credit cards are best used to make payments directly; if you take out cash using your credit card the interest rate will be far higher. Late fees will also be applicable.
Family and Friends
When it comes to finances, friends and family could often help you out. While you may be hesitant to ask, which is understandable, a loved one may be willing to help you. This could ease your worry and save you money on fees long term.
When borrowing money from a loved one it is still important that you agree on interest and repayment terms. It is also vital that you stick to these to avoid conflict and keep your relationship strong.
Traditional Personal Loan
Taking out a traditional personal loan from banks or other direct lenders could be an option. As previously mentioned, personal loans could also be available almost instantly from an online lender.
Banks and other traditional lenders also offer a cash advance lump sum of money that you can repay in installments, with interest over a fixed period of time.
If your credit score is good you could qualify for a reasonable rate of interest. As with any loan, be sure to compare the repayment terms, interest rates, and any other applicable fees when reviewing your loan offers.
Credit Union Loans
If you’re a member of a credit union, you may be able to get a cash advance loan from them. Credit Unions often offer loans with lower interest rates than a payday loan, traditional banks, and online lenders.
To qualify for these loans you will have to disclose some personal information such as your credit score and reason for requesting.
If you are not already a member this could be a lengthy process as to qualify you have to be an existing member for over a month. Every credit union operates slightly differently and sets its own process which may be online, in person, or a mixture of both.
What Are The Benefits of Same Day Loans?
If you have explored the alternatives and settled on a same day loan, you will find that the following will help you with your emergency funding predicament:
- Instant access to a cash loan in an emergency
- Fast and easy loan request and approval
- Available with poor credit
- Spread the cost of your emergency costs
What About the Disadvantages?
There are of course disadvantages to taking out a loan:
- More expensive than using your own money
- Interest rates
- Late Fees
- Impact on your credit score
- If you take out a secured loan you risk losing your property
- Time is taken researching and comparing borrowing options available
- If you request multiple loans you risk severely impacting your credit score
We highly recommended that you do not make multiple requests when looking for your loan. Requesting loans can impact your credit score and history negatively regardless of whether you go through with them.
Let Loanza Help!
We will aim to connect you with great daily pay loan options. We will use the information you provide us to connect you to a lender, and if connected, can receive your personal loan or short term loan as soon as the next business day!
We proudly work with some of the top direct lending companies in the USA and we can help maximize your chances of getting the payday day loans you need. We work with loan companies that are known to have high approval and acceptance rates to borrow with less favorable credit history. We try to find you the loan that fits your circumstances well!
Remember to read the fine print before signing up for any loan offer!
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