Same day loans explained

 

Most people plan their cash flows without thinking of emergencies. So, when they happen, a shortage of cash on hands pushes people to ask for lending. And same-day loans (SDL) are one of the most sought-for and fast alternatives.

What’s a loan in same day?

SDL is a type of loan that’s given to a borrower the same day as he or she applies for it. In that definition, however, some additional factors come into play:

• the time when a person applies for payday lending (if it is passed for consideration after certain business hours, it may be processed the next working day)

• the speed of work of bank: after the money is approved to be granted, it is sent by the crediting company to the bank account of a borrower the same day or within 1-3 working days after an application is approved. When a borrower’s bank accepts this transfer and credits money into the account is another question, which usually takes from hours to 3 banking days of extra time.

Getting the same-day loan

There are different same day loan companies exist on the market, allowing to get a loan same day, widely varying in terms and conditions:

• the list of documents collected for consideration of a payday lending application, including ones describing financial flows

• requirements to minimum credit score of a borrower

• applicable reasons for requesting a payday lending (some may refuse you when you’re applying, for instance, to repay taxes or to pay for healthcare bills with certain ailments, which threaten a borrower’s health during the planned repayment term)

• effective yearly interest rates (they widely range from 6% to 170%). The better the credit score of a person is the better will be the rate for him or her. Also, it is affected by additional products or conditions, such as enabling the auto payment (which lowers the rate)

• amount given on hands (from $200 to $100,000)

• number of periods of repayment of overnight personal loans (typically, it is possible to find everything, from super short terms equal to several days for smaller amounts to large spans like 100+ months for bigger amounts).

Same-day loans vs. personal loans

Compared to other types of payday loans, one-day loans are quite costly. Also, they have a list of additional features:

1. They tend to have lower terms linked to lower amounts

2. They are often collateral-free, which raises the cost of SDL

3. 24-hour loan approval is given to a wide span of clients, even those having a bad credit history. It is known that a significant share of borrowers generally on the market have a credit score lower than 620. That is a risk, which is compensated by an increased yearly interest rate

4. It is fast to be approved for SDL – most applicants are approved within the same or next working day, and the share of approval is often over 80%.

Other payday lending types, including personal lending, are much cheaper than next day loans for bad credit, sometimes, starting with just 1% interest rates for clients with excellent credit rate and history, high and stable income, and capable of providing collateral. They, however, demand more documents and time to consider an application but they can give larger amounts, sometimes, jumping over $1 million.

Reasons to use best same day loans

There are various reasons that our life makes us consider lending. Some of them are pleasant, some are not. As SDL is given in a wide span of amounts, they’re able to cover such:

• repairing a house, car, or anything else

• renovation of a movable or immovable property

• leisure, including vacation

• wedding expenses

• as an alternative to student lending

• merging all existing borrowings into one, including the goal of lowering their general cost.

Frequently Asked Questions about quick loans same day

1. How do I know I’m approved?

When a person applies for lending, he or she leaves contact data (phone, email, fax, sometimes, social media links). This data is then used to inform them about the decision.

2. When money from same-day personal loans comes to my account?

After the lending application is considered, it has to be approved. After this, a client is invited in person to sign a lending agreement (or using one of the remote channels). The agreement defines all basic data about payday lending: sum, terms, interest rate, and so on. Only then, the money is sent to a borrower’s account opened in a bank (same day or next working day). When it comes to account is another issue – extra hours or days are usually required. 

3. What’s the easiest loan to be approved for?

The easiest loan is the one that does not require a lot of documents, time for consideration, or a very good credit history of a borrower. Such loans provide a little money to be lent: several hundred or thousand dollars at most. They can be approved within a few working hours or day(s). They are called same-day loans or payday loans.

4. What minimum credit score is needed to be approved for same day loans online?

When applying for same-day loans or payday loans, the score allowed by a specific lending company can vary. It’s possible to find different lowest minimal required scores in different companies. The market of fast lending is flooded with borrowers having from low to bad credit scores, often, below 600 points.  

5. What are alternatives to same day loans?

Same-day lending is one of the fast yet not cheap methods of obtaining money legally. If there is no urgency in a borrower, then it might be a reasonable solution to apply for a bank loan to have a cheap and long-term borrowing, which will not dramatically hit the family budget. Applications are considered minimum during days maximum during months, with an average term of their consideration being equal to 1-2 weeks. Bank loans make it possible to have a low rate (below 5%), which does not make the loan eat all of your money in the long run.