Do you need extra cash as soon as possible but have bad credit? Then, a same-day loan can have your back! Due to its stress-free and quick cash access, it’s a go-to solution for any pressing financial condition that needs instant credit.
Whether for a simple weekend getaway, to make ends meet, or an urgent medical cost, a same-day loan can help you in many possible ways. To better understand, here are a few of the many good reasons why borrowers opt for same-day loans.
Quick Approval and Funding
A same-day loan is known for its instant funding access. It’s a loan type that’s usually disbursed within 24 hours. After completing your loan application online, lenders will respond immediately to you within the day.
Once approved, you can get the loan proceeds on the same day you applied. Due to its quick funding access, a same-day loan is usually taken out to finance unforeseen situations; hence, it’s also called an emergency loan.
Hassle-Free Application
Application for a same-day loan is usually made online, which requires less to no documentation. Typically, lenders require nothing more than completing an online form with your personal and financial details.
Rest assured, all your information is secured and will only be used by the lending companies you’ve applied for to make a quick decision on your loan application. Unless specified, they will not be passed on to other parties.
Open for Bad Credit
A same-day loan is one of the easy loans for bad credit. Most same-day loans are open for poor credit borrowers. However, since they’re high-risk borrowers by default, same-day lenders tend to charge high-interest rates to compensate for potential risks.
The good news is that a same-day loan is a short-term loan. That means the shorter your repayment period will be, the shorter the time for interests to accrue. You can save money in the long run despite having a higher interest rate than other long-term loans.
No Collateral Required
As an unsecured loan, same-day lenders don’t usually require you to put up any secured valuables or assets as collateral. Instead, they rely on alternative credit data, usually just your income and credit. It’s the reason why applying for a same-day loan is one of the most straightforward loan application processes you’ll be able to experience.
Available 24/7
Applications for a same-day loan are available outside traditional banking hours. As stated earlier, these loans are processed over the Internet, so they’re accessible 24/7.
Being online means fully automated, where artificial intelligence (AI) facilitates the loan application process. That being the case, it allows you to borrow money any time of the day or night.
Higher Chances of Approval
Since same-day loans aren’t prejudiced against bad credit borrowers and don’t ask for collateral, you’ll likely have higher chances of approval. Other lenders even approve you immediately and offer a same-day loan tailored to your current financial situation. You’ll understand more of this under “Borrowers’ Control.”
Borrowers’ Control
Another good feature of a same-day loan is that you have the power to choose. In this case, you don’t meet lenders’ requirements any longer. Instead, the lenders themselves adjust to your needs.
Lenders will show you a list of options based on your income and credit, with clear information about the overall repayment amount. These options include the monthly installments and repayment dates.
From those options, you can choose which works the best for you. You can then adjust the borrowing amount or the length of the repayment period to tailor your financing to your needs.
Choose the loan amount that equals what you exactly need. Borrowing too less can leave you with more expenses elsewhere, causing you another financial difficulty. In contrast, borrowing too much will likely cause you to pay unnecessary interest.
Cheaper in The Long Run
If you have the money available, lenders will allow you to make early repayments without additional charges, unlike other loans with prepayment risks.
Other lenders even offer diminishing interest rates, where the interest rate is calculated on your outstanding monthly loan amount. In other words, the earlier you pay off your loan, the less interest you will pay.
Easy to Manage
Borrowers are given a personal online account once their same-day loan applications are approved. With it, you can easily check your current loan balance, repayment dates, repayment options, and other important information anywhere and anytime, making loan management easier.
Final Thoughts
Bear in mind that same-day lenders still do check stringent affordability checks. There’s no credit check, but you’ll likely be subjected to a higher APR and a shorter repayment period. Even worse, if loans don’t require credit and income, they’re likely going to be very expensive and can trap you in debt. It’s a cause for concern, so avoid them at all costs.
Aidan has been writing about personal finance for over 6 years. Prior to this, he worked as a Corporate Finance Analyst where he specialized in Due Diligence, Company Valuations and more. He is a CFA charterholder.
