Personal loans such as same day loans are quite a bit more popular than traditional installment loans. They’re often easier to qualify for and don’t need any kind of security.
But one of the biggest reasons for their popularity is how quickly you can get the money. Let’s look at what you need to know when considering same day loans.
What Exactly Does “Same Day Loans” Mean?
A same day loan is exactly what it sounds like — a loan where you can get your money the same day you apply.
These quick loans can be a lifesaver if you find yourself in a tight spot and need to pay for something asap. You could have the money in your account within a few hours in many cases.
Types of Quick Loans
There are several types of same day loans available:
- Payday loans
- Title loans
- Pawnshop loans
Each has its advantages and disadvantages. You can read more about how these loans work in this Bonsaifinance.com article.
How You Get Your Money
If you’re applying for one of these loans, chances are you need the money as quickly as possible. There are several options for getting the funds from the lender.
The most obvious way is cash. If you’re dealing with a payday loan company or another lender with a storefront location, this is often an option.
Many lenders will also deposit the funds on your debit card, making them immediately available for use. Wire transfer or bank wire is another possibility.
And finally, many lenders can use ACH (automated clearing house) to transfer the money into your bank account. ACH transfers can depend on the timing though.
These transfers are typically settled three times a day so if you miss the last time, you may have to wait until the following day to get your funds.
Will Bad Credit Stop You From Getting a Loan?
You may qualify for some of these personal loans even if you have bad credit. Many lenders offer bad credit loans for people whose credit scores are less than perfect.
In some cases, you may not even need to go through a credit check at all. Just be aware that bad credit loans and no credit check loans tend to have higher interest rates than other options.
Benefits of Same Day Loans
Same day loans offer several benefits, including:
- Easier to qualify
Speed is the most obvious benefit. Applying for an installment loan can takes days or even weeks by the time it’s approved (assuming it even gets approved). That’s not helpful if you need the money immediately.
The approval requirements on these quick loans are often easier to meet than a traditional loan through a bank. And because they’re unsecured, you don’t need any kind of collateral.
A Good Solution for Sudden Expenses
If you’re suddenly faced with an unexpected expense that needs to get paid quickly, same day loans can be a good solution. Just be sure you pay them off as quickly as you can so you don’t pay more interest than necessary.
Be sure to browse through the rest of our blog for more helpful articles.