Same Day Loans: The Ultimate Guide
Have you been thinking about getting same day loans? If you are struggling financially and you need money quickly, then a loan like this may seem like the perfect solution. Fast money is hard to find at traditional financial institutions, and if your friends aren't available to help you out, the situation can turn dire.
A service like this that offers small loans for financial emergencies is essential, because it can help a lot of people avoid disasters. But how can you know whether or not same day loans are right for you? Do you know enough to make a decision? Keep reading to find out all there is to know!
What Are Same Day Loans?
Like the name suggests, same day loans are loans that you can get on the very same day you apply. While that depends on how quickly the process goes and can be delayed, "same day" is used to indicate a very quick loan. As long as you have all the necessary documentation, there is no reason why your application should not be processed swiftly and why you shouldn't have the money as quickly as possible.
What Can A Same Day Loan Be Used For?
I'm sure you've asked yourself what drives the need for same day loans. As you can imagine, one applies for a same day loan when they need money very quickly and there is no time to look for alternative options. It is an excellent financing solution for when you're in a pinch and the situation calls for you to take quick action, but it can also be used just for everyday expenses. In fact, according to a report conducted by the Competition and Market Authority, over half of payday loan borrowers (53%) said they use the money for everyday bills, while 7% spend it on household objects and other shopping, and 10% use it to cover vehicle-related expenses.
For example, you may have been counting on some other type of financing to come through and it hasn't, and now you need to make an urgent payment, such as rent, tuition fees, a loan instalment, etc. Or, your car broke down and you need money urgently to fix it in order to be able to continue going to work. Or perhaps you need to make an urgent home repair, like a broken pipe. It can even help in the eventuality that you need to purchase plane tickets for an unforeseen trip.
There are no limitations to how you can use your money, as long as the amount covers your needs and you are able to get it quickly enough to solve your issue successfully.
How Do Same Day Loans Work?
So, those are all the things you know you can do with this kind of loan, but you still don't quite know how they actually work. So, let's take a look at the basics and specifics of same day lending.
How much can I get?
In terms of loan amount, the offers will vary, depending on the company you choose. If you browse through some offers, you will notice that you can get loans as low as £50 and as high as £5000, all depending on:
- the company
- your needs
- your financial situation
- your credit score
It's a good idea to know how much you need, going in, and remember not to borrow more than you intended, or more than you need. It may seem like a tempting idea at the time, but that only puts you into more debt, unnecessarily.
How long do I have to repay?
Your repayment period goes hand in hand with the amount you borrow. The more money you get, the longer the repayment period will be, but not all companies offer both short-term and longer-term loans. So, for example, if you're going for a small payday loan of only 100 quid, you will most likely be asked to repay that within a month, or less, depending on the lender and their policy. If you need more, the same company may be able to offer you £500 over a period of 3 months. If you're going for a loan that's close to the maximum amount - so around £5000, you may be allowed to repay over 12 or 24 months.
How fast is it?
Lending companies who offer this sort of lending boast that they are able to get you your loan immediately, on the same day you apply. That means you only have to wait a few hours, or in some cases, maybe even minutes. If you have all of your paperwork lined up and provide all the necessary information in a timely manner, some lending companies say they can get you the money in 10 minutes. For safety's sake, it is advisable to make the application at least a day before you actually need the amount, just to make sure.
Who offers same day loans?
You're lucky that you don't need to go far to get same day loans! In fact, you can probably get one right now, right we're you're sitting. A lot of lenders offer them online, so your search can be quick, easy, and fruitful. Of course, you can also take the traditional route, if you wish, and look for lenders' offices on the high street.
How do I apply?
You don't have to worry about the application process, as it's nothing you haven't encountered before. The easiest way to apply is to do it online. All you have to do is fill out the form with your details and you will be notified almost instantly of whether or not you have been accepted. Once you get approved, you can go ahead and finalise the process by providing any necessary documentation.
What do I need?
The beauty of applying for payday loans like this is that you don't actually need much in order to apply, or get approved. Generally, you won't encounter requirements that are outside the ordinary - just minimum requirements, such as:
- being a UK resident
- being over 18 years of age
- having a bank account the company can deposit your money in
How To Get Same Day Loans With Bad Credit
Fortunately for people whose credit is not stellar, there is no magic word you have to say and no perfect recipe you have to follow. You can get same day loans without much hassle, even if your credit is not exactly perfect.
First of all, there are companies that do not even take your credit history into consideration. That is a non-issue from the start, because it won't be taken into consideration, so you don't have to be worried about being rejected on this basis.
Second, there are companies that offer loans specifically to people with bad credit, or that offer special rates for them. It's true that the interest rate will be higher, and you may be limited in terms of loan amount, and maybe repayment term, but it is unlikely for you to be outright rejected because of your poor credit rating.
How Can You Improve Your Credit Rating?
If you want to avoid having to get a loan for bad credit altogether, you might be interested in improving your credit score, instead. Can you even do that? Yes, you can! There are steps you can take to achieve a better score that will allow you to take control of your financial future and enable you to qualify for better deals with lenders everywhere.
Why is your credit rating important?
But first, let's talk about why your credit score is so important and influences your financial behavior so much. You see, every financial move you make has an effect on your credit score, positive, or negative, and your rating becomes a reflection of your financial behavior and how responsible you are with your finances. This is what any potential lender will review before deciding whether or not to lend to you.
If your score is good, it means you've been making sound financial decisions, keeping up with payments, you're not in debt, etc. If, on the contrary, your rating is poor, that's a red flag, and an indication that you may not be as responsible as you seem in person. Maybe you've had some loans you weren't able to pay off, or perhaps you have a lot of credit cards that you maxed out; whatever it is, it's going to influence the way potential lenders perceive you and the offers you receive.
Here are some of the simple things you can do to make sure that your score is as good as it can get:
Pay off debt (yes, that includes credit cards)
What is the biggest drain on your credit rating? If you guessed previous debt, then award yourself a prize, because ding ding ding - that is the right answer. It comes as no surprise that if you've taken out loans and haven't been diligent about repaying them, your score is going to reflect that.
So, before anything else, you're going to want to start putting more effort into paying off your debt, so that your score can shoot up and show you are serious about repayment. No more minimum credit card payments!
Speaking of credit cards, only keep one
Credit cards can be your best friends or your worst foes, and that is because with great power comes great responsibility. You have to look past the childish excitement of essentially having free money to play around with, because it's not free at all; in fact, it costs you more than you want to know, in interest.
Eliminate the temptation and your ability to rack up debt by limiting your credit cards to just one. That's all you need. That way, you will not have multiple opportunities to make impulse purchases and you'll have to think twice about "just putting it on your card".
Pay all your bills on time
Think hard - are you good about paying things on time, or are you the type to stall and dodge calls for weeks before finally making your due payments? You would not believe what a difference it can make to just...pay bills on time. A very novel idea, indeed. All you have to do is make sure that none of your payments become overdue.
In order to facilitate that, there are some things you can do:
- Pay early
- Mark your due payments in a calendar
- Set up alarms reminding you of due payments
- Set up direct debits
It's a good idea to pay off any other previous loans you may have - or consolidate them - before getting another loan.
What Are The Advantages Of Same Day Loans?
By now, you know some things about same day loans, such as what they are and how they work, but if you're thinking about applying for one, it would be helpful to know what benefits a same day loan can offer you. Why would you get one, and is it the best option for your needs? Let's find out.
You get the money very quickly
Obviously, the most important benefit, by far, is the quick delivery of the money once you've been approved. When you're in a situation where you need money urgently, there is no time to faff around; you need somewhere you can go and get things done quickly and hassle-free, and that is exactly what this kind of same day payday loan can offer you. If you're ever in an emergency situation, you know that you can apply, get approved quickly, and then have the money in your bank account as quick as just 10 minutes later, depending on the lending company.
The approval rate is high
One of the most stressful aspects of applying to borrow money is waiting to see whether or not you will get approved. Of course, you can do all the soft searches you want and you may even have good credit; on paper, it all looks good and the chances are in your favour. However, you never know what's going to happen. Same day loans have the advantage of being able to assure you, more or less, that you're going to be approved. With an approval rate of over 97% for most such lending companies, you don't need to fret while you're waiting for an answer.
You can get them with bad credit
If your credit rating is nothing to be proud of, then you may have had some issues getting credit in the past. Maybe you've been refused by other lenders, and the banks may have shown you the door. After all, no one wants to give credit cards and loans to people with bad credit, right? Wrong! Same day loans are an excellent option for individuals with a poor credit history, because the companies won't turn you away, but instead will work with your rating and try to offer you options that are suitable for your needs and for your particular situation.
What Are The Disadvantages Of Same Day Loans?
And if we've looked at advantages, it's only fair that we also take a look at what drawbacks you can expect from same day loans. What should make you think twice? What may change your mind? Is there anything crucial you should know, before committing to a payday same day loan? Let's see!
The interest rate is very high
As with all payday loans, the lending company offers you convenience, but in exchange, they charge you an arm and a leg in interest fees. That is pretty much unavoidable and is also the case with same day loans. You can expect an interest rate of around 270% APR and over. The longer it takes to repay the loan, the more you will end up paying in interest fees, so you have to think long and hard about whether or not it's worth paying that much for this amount of money.
You risk falling into a vicious circle
One of the biggest dangers you face with payday loans is that, because of the short repayment term and massive interest rates, you may end up needing to get another same day loan to pay your first one, or you will just have to keep getting loans, because you run out of money after repaying them. That can land you into serious debt, and a series of never-ending financial issues that can be very difficult to get away from.
The lending companies are not always reliable
Unfortunately, among all the trustworthy, accredited companies out there, there are also fake companies who are looking to scam you. Hidden clauses, extortionate interest fees, and expensive processing charges are all things that should send you running into the opposite direction. However, a lot of the times it's too late when you discover these hidden aspects, so it's better to avoid them altogether. You can do that by researching the company's background and making sure that they are properly registered and are legally allowed to lend money; you wouldn't want to unknowingly step into a loan shark's lair.
Are There Any Good Alternatives To Same Day Loans?
So, let's say you've read the entire spiel and you remain disinterested in same say loans. Maybe the interest rate is too high for your liking, or maybe you think it's risky. Perhaps it's the seedy loan sharks that you're scared of. Whatever it is, here are some viable alternatives you can try:
Doorstep loans are another type of payday loan, much like same day loans. The difference, here, is that instead of having you go out looking for a loan, it is the loan that comes to you. That's right, you don't have to do anything, except for making that first call or online message. After that, an agent will come to your house and get everything sorted, including application, delivery of the loan, and then picking up the respective repayment instalments on their regular payment date. It's a great solution for extremely busy people, single moms, or people who have mobility issues.
Everyone has credit cards nowadays, right? They can be dangerous, as they can easily tip you into overspending, but they can also be quite useful when it comes to expenses you did not quite foresee. Just knowing that you have the option in your back pocket can give you peace of mind, so it's worth looking into it. What you do need to be aware of, however, is that you need a good credit rating for this, as banks do not look kindly upon individuals who do not take repayments seriously.
All in all, same day loans can be a great way to get out from a sticky situation, financially speaking. Whether you find yourself in an emergency and you need to replace a part for your car or something in your house, or you've had an unexpected rise in expenses or a drop in income, you can get money in a quick, reliable way with a cash advance on the same day. Review all the information about this financing solution and see if a loan that is transferred almost immediately into your bank account is right for you.