The Basics Of Same Day Loans

If you've ever been in a pinch, financially, you may have heard of same day loans. They can be a real life-saver and an excellent option if you are in urgent need of funds and you can't get them anywhere else. It happens to the best of us; sometimes, we just run out of money and need some emergency help. Traditional loan applications can take forever, and then you also have to wait around to get your money. Same day loans can offer some advantages in that department.

A Same Day Loan Is Right For You If

You've got an emergency

Emergencies are, by nature, urgent, and unpredictable. That means you can't know what is going to happen or when, or how much it's going to cost you. And if you haven't been able to set money aside and create an emergency fund, then chances are it's going to catch you in a tough spot. You can overcome this moment with a strategically borrowed same day loan.

You need to cover everyday expenses

Most people who get same day loans need a little bit of help meeting their regular expenses. Especially when your expenses rise unexpectedly, you are made redundant, or your hours are cut at work, you will have a sizable gap between the amount you need to pay and the amount you can afford. Getting a fast loan can help you close that gap and make ends meet, at least for now, until you find a more permanent solution.

You need help budgeting

If there's a major purchase on the horizon, but you can't afford it, then getting a loan to pay for it can make financial sense, if we're thinking long-term. You see, if you get a loan, you can then repay it in instalments, which will fit right into your budget. You get the money quickly and easily, pay for what you need, and then get to enjoy it while you pay off the loan, while also improving your credit score at the same time!

Any Drawbacks You Should Know About?

Like any other financing solutions, there are some disadvantages to consider. Same day loans aren't a perfect option, by any means, so some of these aspects may be deal-breakers.

Low borrowing amounts

The thing about same day loans is that they do not offer very high amounts. That can be a problem or not, depending on what you need money for, but you can usually expect between £50 and £5000, with the average loan being £1000. That won't cover all of your financial emergencies, but on the other hand, it will be easier to pay off, especially in instalments, so you don't have to worry about paying forever.

You need to pay it off quickly

Since you don't get a lot of money and it's an unsecured loan, you don't get a lot of time to repay the money. The term is quite short, in fact - somewhere between 3 months and 24 months, depending on the amount, but also on the lender. You have to repay fairly quickly, and if you factor the interest charge, it can be difficult.

You pay a lot in interest

Most loans come with an interest rate, so that won't be a shock. However, loans that allow you certain concessions, such as no credit check, or same day approval, have a higher interest rate because of the added advantages. It's an unsecured loan, meaning that you rely a lot on your credit score and on the interest you pay. You can expect a 270% APR, which, while not being the highest, is still sizable, especially if you take a long time to pay the money back.

What Alternatives Should You Consider?

Let's say same day loans aren't for you. Let's look at some options that are suitable for your needs:

1. Cash advances
2. Payday loans
3. Peer to peer loans
4. Doorstep loans
5. Logbook loans
6. Credit cards

There are advantages and disadvantages to same day loans, just like any other similar financing solution. A same day loan can save your life when you need money urgently and don't feel like you have anyone else to turn to. But there are also some drawbacks that may become deal-breakers, so you need to consider them carefully, alongside the benefits. If you need money fast, these loans can be your best bet, but there are some alternatives you can take a look at if you're unsure.