Hopefully you aren't strapped on cash and can manage without a loan. But sometimes emergencies happen, and if you get stuck, here's one type of loan to consider, sent in by a reader.
Any person can experience a lack of funds, especially during emergencies. When your salary is still far off, you can borrow money from people you know or apply for the same day loan.
You can find many offline and online companies that offer same day loans. It’s up to you to select the one that fits your budget. What you should understand, though, is that a same day loan is preferably the last resort when one has no other to turn to.
What’s A Same Day Loan?
The same day loan, also known as a payday loan or instant loan, is one of many types of online loans where approval doesn’t take over a day. A same day loan is one of the few solutions that are available to middle-class employees who need emergency funding. It could be for a life event, to pay bills, get medical needs, or to have their car or household appliance fixed. Lenders who offer this type of loan make money from the interest rates.
There are various lenders online that you can browse. Some lenders also have their mobile app that you can download to your phone, such as the one shown in this video.
It allows you to apply for a loan anywhere you are, so you don’t have to stand to wait in a queue of customers.
Different Types Of Same Day Loans
To avoid late payments, consumers need to consider borrowing what they can return, including the interest. There are three kinds of same day loans available to consumers. These are:
1. Payday Loans
The most popular same day loan type is a short-term loan that you have to pay back on your next payday.
If you’re of legal age, working, and with a bank account, you’re likely to be eligible for a loan. Payday loan duration can reach up to 14 days, and you’re expected to get approved, which is why the APR can go as high as 400%.
2. Pawnshop Loans
Unlike payday loans, pawnshops require a value in exchange for an amount that may be less than what your item is worth. You can get your valuable item back when you pay the money back as well.
Interest rates can reach up to an APR of 240%. Like any other same day loan, it deserves consideration, but only if you’re sure that you can pay it back.
3. Title Loans
Just like pawnshop loans, you can get money right away if you have any property to exchange for the cash you temporarily need. Most lenders, however, will only provide a smaller amount than what your property is worth. Your car, for example, can serve as the collateral. You’ll have to hand over the title of your vehicle to the lender. For example, your car may cost thousands, but you can get around $700 for it.
Requirements For Same Day Loans
The following are what you need to proceed with a same day loan application. This type of loan is one of the easiest to apply for because of the simplicity of the requirements. It applies to most provinces in Canada:
Benefits of Same Day Loans
When you need cash, realize that there are more pros than cons when it comes to same day loans. Along with the fact that same day loans are easy to apply, here are also its benefits when applying for one:
1. Online Application Is Convenient
Financial technology is booming. Banks and lending institutions are keeping up because the Internet allows people to find these businesses. Thanks to online lending and lending apps, banks don’t have to be the last resort anymore.
The exposure and the reach they offer alone are staggering, so people can simply create an account on their computers and mobile devices without leaving their homes. People can search for the company that they want to apply for a loan, and they get many choices as well.
2. Fast Decision Making
The problem with typical loans is that banks and other lending companies are taking forever for approval or rejection. For a person who’s strapped for cash and is racing against time to pay a bill, a debt owed, or to purchase necessities, you still have to wait for two weeks or so, regardless of why you need the money in the first place.
With same day loans, you can get approval as fast as 15 minutes, with the longest up to 24 hours, depending on the provider. This is basically why same day loans exist: to provide you with what you need during these trying times. There’s also no long queuing that’ll frustrate you, especially when your application gets denied.
3. Time Saving Process
Gathering requirements, commuting or driving to the location, and filling up forms can be too much. Sometimes, you’re not in the position to keep leaving your home, especially when you’re a parent or a provider with dependents.
The online application of same day loans takes only a few short minutes. You can even do it as long as you have a device and a secure connection to the Internet. Best of all, you can do it at the privacy and comfort of home.
4. Access Regardless Of Specific Events
As we’re still in a global pandemic, many cannot leave their homes to do anything other than to shop for supplies or go to work. People at specific ages cannot even go out in some locations as they are deemed susceptible to the Coronavirus.
Like many others that conduct their businesses on the Internet, same day loan online websites are always open; they’re available to cater to the needs of customers 24/7.
5. Practical Option For Most Cash Needs
The same day loan is a credit option that only allows a specific amount of money. The maximum amount you can borrow is $1,500. If the amount you need doesn’t exceed that, you don’t have to acquire a more substantial sum only to return it with vast interest.
The reason for this limit is because it’ll be easier for you to pay for it to come to the due date. Most customers who turn to same day loans are those who don’t have enough to cover a sudden expense.
Online loan providers immediately release the amount on your bank account. When payday comes, you’ll only pay back the amount you took plus interest.
6. Safer Transactions
Going out to meet your loan provider still has its risks because a lot can happen on the way there or when you get to the place. Remember, people can see you when you walk in and out of the cash store. However, when you can apply and transact online, you don’t have to worry about losing your borrowed money.
The loan provider safely sends the money electronically where you can withdraw it from any ATM where there’s heavy foot traffic, and you’re safe from getting mugged. It mostly takes them only 5 minutes to transfer the cash to your account.
7. Good Customer Service
If you’re still unsure whether you should get the same day loan, you can always partake in a live chat with a customer service agent. Most online loan providers have chat agents on standby to answer questions from potential customers. But a brick-and-mortar cash store can do that for you, too, right? Not always.
Not all proprietors know how to talk to people. Some would prod or lie just to get your business. And, even worse, if you speak to a staff who doesn’t know the answers to your most basic inquiries. Chat agents, on the other hand, are trained to handle various questions that they’ll likely come across.
8. No Collateral Needed
Most same day loan customers are middle-class workers who can at least pay what they owe. Customers only borrow what they need, so it doesn’t make sense to ask for collateral if they don’t have anything to give that equates the amount of.
Same day loans are short-term only, and loan providers expect you to pay back what you owe after 14 days at least. Only banks and large lending companies require collateral, such as a car, if you’re borrowing a large sum of money.
9. Bad Credit Scores Are Still Eligible
There’s no online authority that bans individuals with bad credit from borrowing money from online loan providers. These lenders still cater to those with bad credit because there’s always a chance that you can pay them back.
Also, it’s a fact that bad credit scores mean that customers cannot pay back what they owe. If you decide to work on paying back what you owe, same day loans help improve your credit score.
10. Subject To Laws On Online Lending
Like the Federal Trade Commission that helps regulate the online lending industry in the United States, the NT Royal Canadian Mounted Police (NT RCMP) are issuing warnings to Canadian citizens regarding borrowing money electronically. Because of the pandemic, businesses and employees have been profoundly affected, and fake lending websites are appearing to scam people in need of financial help.
According to the NT RCMP, you can protect yourself by keeping the following in mind:
What To Look For In An Online Lender
If you need cash as soon as possible, you still need to be careful when choosing a website. Many sites scam people who are not being careful. Often, it’s desperation that blocks common sense and gets the consumer in further trouble.
To make things easier, here’s what a legitimate loan provider should have.
In Conclusion
Loan providers online offer speed, convenience, safety, and support when customers approach and apply for a loan. It’s an option for those who need cash for emergencies and is the easiest to use for simple requirements and a high approval rate. However, because most same day loans are short term, they do have high APRs and are not for those who tend to be financially problematic and have little to no means of paying back loans.
It’s a temporary solution for those who have the discipline to work out what they owe as paying back a loan can indeed raise your credit score. If you do need to get the same day loan, do your diligence and research websites that are registered as a legal business. Read consumer views on specific loan providers to help you find the best service for you.
Any person can experience a lack of funds, especially during emergencies. When your salary is still far off, you can borrow money from people you know or apply for the same day loan.
You can find many offline and online companies that offer same day loans. It’s up to you to select the one that fits your budget. What you should understand, though, is that a same day loan is preferably the last resort when one has no other to turn to.
What’s A Same Day Loan?
The same day loan, also known as a payday loan or instant loan, is one of many types of online loans where approval doesn’t take over a day. A same day loan is one of the few solutions that are available to middle-class employees who need emergency funding. It could be for a life event, to pay bills, get medical needs, or to have their car or household appliance fixed. Lenders who offer this type of loan make money from the interest rates.
There are various lenders online that you can browse. Some lenders also have their mobile app that you can download to your phone, such as the one shown in this video.
It allows you to apply for a loan anywhere you are, so you don’t have to stand to wait in a queue of customers.
Different Types Of Same Day Loans
To avoid late payments, consumers need to consider borrowing what they can return, including the interest. There are three kinds of same day loans available to consumers. These are:
1. Payday Loans
The most popular same day loan type is a short-term loan that you have to pay back on your next payday.
If you’re of legal age, working, and with a bank account, you’re likely to be eligible for a loan. Payday loan duration can reach up to 14 days, and you’re expected to get approved, which is why the APR can go as high as 400%.
2. Pawnshop Loans
Unlike payday loans, pawnshops require a value in exchange for an amount that may be less than what your item is worth. You can get your valuable item back when you pay the money back as well.
Interest rates can reach up to an APR of 240%. Like any other same day loan, it deserves consideration, but only if you’re sure that you can pay it back.
3. Title Loans
Just like pawnshop loans, you can get money right away if you have any property to exchange for the cash you temporarily need. Most lenders, however, will only provide a smaller amount than what your property is worth. Your car, for example, can serve as the collateral. You’ll have to hand over the title of your vehicle to the lender. For example, your car may cost thousands, but you can get around $700 for it.
Requirements For Same Day Loans
The following are what you need to proceed with a same day loan application. This type of loan is one of the easiest to apply for because of the simplicity of the requirements. It applies to most provinces in Canada:
- Applicant must be at least 18 years old
- Any government-issued ID card
- Must have a checking account history at least 60 days-old or longer
- Must be employed for at least six months (with proof of employment)
Benefits of Same Day Loans
When you need cash, realize that there are more pros than cons when it comes to same day loans. Along with the fact that same day loans are easy to apply, here are also its benefits when applying for one:
1. Online Application Is Convenient
Financial technology is booming. Banks and lending institutions are keeping up because the Internet allows people to find these businesses. Thanks to online lending and lending apps, banks don’t have to be the last resort anymore.
The exposure and the reach they offer alone are staggering, so people can simply create an account on their computers and mobile devices without leaving their homes. People can search for the company that they want to apply for a loan, and they get many choices as well.
2. Fast Decision Making
The problem with typical loans is that banks and other lending companies are taking forever for approval or rejection. For a person who’s strapped for cash and is racing against time to pay a bill, a debt owed, or to purchase necessities, you still have to wait for two weeks or so, regardless of why you need the money in the first place.
With same day loans, you can get approval as fast as 15 minutes, with the longest up to 24 hours, depending on the provider. This is basically why same day loans exist: to provide you with what you need during these trying times. There’s also no long queuing that’ll frustrate you, especially when your application gets denied.
3. Time Saving Process
Gathering requirements, commuting or driving to the location, and filling up forms can be too much. Sometimes, you’re not in the position to keep leaving your home, especially when you’re a parent or a provider with dependents.
The online application of same day loans takes only a few short minutes. You can even do it as long as you have a device and a secure connection to the Internet. Best of all, you can do it at the privacy and comfort of home.
4. Access Regardless Of Specific Events
As we’re still in a global pandemic, many cannot leave their homes to do anything other than to shop for supplies or go to work. People at specific ages cannot even go out in some locations as they are deemed susceptible to the Coronavirus.
Like many others that conduct their businesses on the Internet, same day loan online websites are always open; they’re available to cater to the needs of customers 24/7.
5. Practical Option For Most Cash Needs
The same day loan is a credit option that only allows a specific amount of money. The maximum amount you can borrow is $1,500. If the amount you need doesn’t exceed that, you don’t have to acquire a more substantial sum only to return it with vast interest.
The reason for this limit is because it’ll be easier for you to pay for it to come to the due date. Most customers who turn to same day loans are those who don’t have enough to cover a sudden expense.
Online loan providers immediately release the amount on your bank account. When payday comes, you’ll only pay back the amount you took plus interest.
6. Safer Transactions
Going out to meet your loan provider still has its risks because a lot can happen on the way there or when you get to the place. Remember, people can see you when you walk in and out of the cash store. However, when you can apply and transact online, you don’t have to worry about losing your borrowed money.
The loan provider safely sends the money electronically where you can withdraw it from any ATM where there’s heavy foot traffic, and you’re safe from getting mugged. It mostly takes them only 5 minutes to transfer the cash to your account.
7. Good Customer Service
If you’re still unsure whether you should get the same day loan, you can always partake in a live chat with a customer service agent. Most online loan providers have chat agents on standby to answer questions from potential customers. But a brick-and-mortar cash store can do that for you, too, right? Not always.
Not all proprietors know how to talk to people. Some would prod or lie just to get your business. And, even worse, if you speak to a staff who doesn’t know the answers to your most basic inquiries. Chat agents, on the other hand, are trained to handle various questions that they’ll likely come across.
8. No Collateral Needed
Most same day loan customers are middle-class workers who can at least pay what they owe. Customers only borrow what they need, so it doesn’t make sense to ask for collateral if they don’t have anything to give that equates the amount of.
Same day loans are short-term only, and loan providers expect you to pay back what you owe after 14 days at least. Only banks and large lending companies require collateral, such as a car, if you’re borrowing a large sum of money.
9. Bad Credit Scores Are Still Eligible
There’s no online authority that bans individuals with bad credit from borrowing money from online loan providers. These lenders still cater to those with bad credit because there’s always a chance that you can pay them back.
Also, it’s a fact that bad credit scores mean that customers cannot pay back what they owe. If you decide to work on paying back what you owe, same day loans help improve your credit score.
10. Subject To Laws On Online Lending
Like the Federal Trade Commission that helps regulate the online lending industry in the United States, the NT Royal Canadian Mounted Police (NT RCMP) are issuing warnings to Canadian citizens regarding borrowing money electronically. Because of the pandemic, businesses and employees have been profoundly affected, and fake lending websites are appearing to scam people in need of financial help.
According to the NT RCMP, you can protect yourself by keeping the following in mind:
- Do your diligence to research about lending website before providing personal information.
- No legitimate lending company will ask for an upfront fee; it’s illegal in most Canadian provinces. Avoid further contact if the business persists in asking for payment by any means.
- Beware of websites that guarantee loans to those with no credit or bad credit history. Not all will show transparency.
- Check the legitimacy of the online loan provider by contacting your local consumer protection agency.
What To Look For In An Online Lender
If you need cash as soon as possible, you still need to be careful when choosing a website. Many sites scam people who are not being careful. Often, it’s desperation that blocks common sense and gets the consumer in further trouble.
To make things easier, here’s what a legitimate loan provider should have.
- Your loan provider must offer manageable interest rates, so it’ll be easier to repay the loan. They’ll allow themselves to compete with other legitimate sites in terms of loan duration as well. To know exactly where you stand, it’s essential to read the terms and conditions as well.
- To show that it follows laws and regulations, the website must have licensing under the Canadian Consumer Finance Association. Consumers get protection this way, so you need not worry if you’re dealing with a legal business or not.
- It’s better to work with established reputable websites if you’re not sure which ones to choose. Reading consumer reviews also helps get insights on how a loan provider operates. Experienced lenders are likely to share behind the scenes processes, which can help you prepare.
- A legitimate website must have all the essential information regarding other services, as well as statements that one may find in a consumer-based service website for the safety of customers. These websites will ask you to create an account where you’ll be asked to provide personal information. You must be sure to check if the business is legitimate before sharing your identity.
In Conclusion
Loan providers online offer speed, convenience, safety, and support when customers approach and apply for a loan. It’s an option for those who need cash for emergencies and is the easiest to use for simple requirements and a high approval rate. However, because most same day loans are short term, they do have high APRs and are not for those who tend to be financially problematic and have little to no means of paying back loans.
It’s a temporary solution for those who have the discipline to work out what they owe as paying back a loan can indeed raise your credit score. If you do need to get the same day loan, do your diligence and research websites that are registered as a legal business. Read consumer views on specific loan providers to help you find the best service for you.