A same-day loan is a form of short-term financing that can be approved and deposited within the same day that you apply for the loan.
Furthermore, most same-day loan providers such as those on WeLoans tend to come with low to no credit requirements. This makes same day loans a good option for borrowers that are in need of fast cash to deal with financial emergencies such as an unexpected medical bill or car repair.
Same-day loans also tend to come with shorter repayment periods – typically weeks or months – as well as smaller loan amounts, compared to most other loan products.
Furthermore, while many same day loans offer fast loan processing, they also tend to come with higher interest rates than most other types of financing.
However, the rates you get will often vary depending on the lender you work with. It is for this reason that you should consider same day loans from the broker WeLoans.
The platform of WeLoans is famous for payday loans for bad credit with no credit checks. With its satisfying loan services, you will find it easy to review and compare different lenders, as well as their rates and terms until you find the one that best suits your budget and requirements.
Types of Same Day Loans You Can Borrow
There are a wide variety of same day loans that you can apply for, most of which are typically offered by online lenders. Some of the most common types include:
1. Payday Loans
Payday loans are small short-term loans that typically range between $100 to $1,000 and can be received within the same day of approval. They are essentially designed to act as a cash boost until your next paycheck arrives, hence the term ‘payday’.
For most borrowers, this tends to mean they have only a few weeks to come up with the funds, as the entire loan amount, plus interest will need to be repaid in full. In most cases, payday lenders do not have stringent loan requirements, which makes them a good option for those borrowers with bad credit.
However, these loans tend to come with extremely high-interest rates, which often makes repayment a challenge for many.
2. Title Loans
Title loans are a form of lending that involves putting up your car as collateral to secure the loan. it is also for this reason that these loans often come with high loan amounts, as well as low-interest rates since the risk to the lender is minimal.
In most cases, you can expect to receive cash on the same day that the loan is approved, with repayment typically carried out over a 15 to 30-day period.
However, the biggest downside of this type of loan is that if you default the lender will end up repossessing your vehicle. And should you need the car for transportation, it could complicate your financial situation even further.
3. Installment Loans
A same-day installment loan will usually be disbursed in a lump sum that you will be required to pay back over a set period of time in monthly installments. The benefit of these loans is that most of these loans don’t require any collateral.
Also, you will usually be able to access large amounts within the same day of approval. However, not all lenders offer same-day installment loans, so you may need to look around to find one.
On top of that, these loans are heavily dependent on your credit score, which means that the lower it is, the higher your interest rate will be.
4. Pawn Shop Loans
Pawn shop loans involve offering up a valuable asset as collateral to a pawn shop for cash. This item will usually be held as collateral until you fully repay the loan and if you fail to do so, the pawnshop owner will resell the item to recover their money.
In this respect, they are very similar to title loans, as you can lose your item if you default. On top of that, the interest rates on these loans are typically high and you will only ever be able to access between 25-60% of the item’s true value.
5. Credit Card Advance
Applying for a credit card advance is a good way to avoid the lengthy loan application and credit-check process, as you can get instant cash from a bank or credit union by borrowing against your credit line.
The only problem with this form of financing is that credit card issuers will usually end up charging high-interest rates for these loans, compared to regular card purchases.
Furthermore, there is usually an upfront fee of about 2-3% on these types of loans, with the interest usually accruing immediately upon withdrawal.
Pros And Cons Of Same Day Loans
Similar to any other type of financing, same day loans from WeLoans come with several benefits, as well as drawbacks that should be considered before you decide to sign any loan agreement.
Pros:
- Fast loan approval and disbursal
- Simple and straightforward application process
- Minimal credit requirements
Cons:
- High-interest rates
- Shorter loan terms
- High risk of falling into bad debt
Best Alternatives To Same Day Loans
There are a few alternatives that you should always consider before taking out a same day loan. Some of these options can even spare you the time, effort and money that often comes from borrowing a traditional loan. These include;
1. Borrow From A Family Member Or Friend
While it is understandably difficult to ask others for money, you will be able to bypass the lengthy approval process that comes with borrowing from a traditional lender. Instead, you will only need to discuss and agree to terms before carrying out the money exchange.
Plus, you may even be able to avoid having to pay any interest on the loan. However, do keep in mind that failing to repay your loan can often sour the relationship, which is why you should remain vigilant about fulfilling the agreed-upon terms of the repayment.
2. 0% APR Credit Card
Some credit card issuers tend to offer 0% APR for new cards and these periods will often last 12 – 18 months, during which you will be able to make interest-free payments.
This can be a good alternative to consider, as long as you are confident of your ability to repay your full balance within that set period of time. However, you should remember that you will be charged full interest rates if you fail to make your repayments within this time frame.
Conclusion
Same-day loans can be a great financial solution for anyone that is in need of cash in a hurry. However, keep in mind that while they are quick to process, they do often come with high-interest rates and shorter repayment periods.
As such, you should always take the time to weigh all of your loan options, in order to avoid falling into a cycle of bad debt.
A good rule of thumb is to use a credit broker like WeLoans to find the ideal lender that will give you the money you need without putting your financial health in jeopardy.
