Finance
How to Get a Payday Loan Online on The Same Day?
Even if you plan your budget properly, life can be unpredictable. Financial emergencies can put you under stress and require immediate action. If you don’t have a nest egg to turn to, payday loans can be an alternative option for a fast fix. The best part is that payday loans allow borrowers to get loan proceeds as soon as the next business day or even the same day.
But how is it possible? Keep reading to find out!
Payday Loan Overview
Payday loans are short-term, high-cost loans designed to tide borrowers over when they need fast relief. They are bad credit loans, which means that almost everyone can take out the needed amount regardless of their past financial missteps. In addition to people with bad credit scores, payday loans are also popular with individuals in need of fast financial assistance.
As direct payday lenders don’t make hard credit checks through major credit bureaus, loan processing is usually prompt. Payday loan borrowers can get approved in a matter of minutes. The money will be transferred directly to a borrower’s bank account. Most direct lenders offer same-day payday loans online, so you can complete the whole process from your couch. All of the above makes them an almost ideal option for financial emergencies.
Let’s explore some key payday loan traits.
Payday Loan Amounts
Most payday loans come with amounts between $100 and $1,000. Some states may have payday loan amount caps of $300 or $500. This is made to prevent borrowers from taking out too much expensive debt.
Payday Loan Interest Rates
Payday loans are known for being costly. An annual percentage rate (APR) can be over 400% and sometimes reach 700%. However, small loan amounts and limited terms make them relatively affordable. Lenders are more likely to express a payday loan cost in the form of flat fees.
An average payday loan can cost you an extra $10 to $30 for each $100 borrowed. Your loan cost depends on several factors, such as your state, credit score, repayment period, and a direct payday lender.
Payday Loan Repayment Terms
As the name suggests, payday loans must be repaid by your next paycheck. Thus, loan terms are typically between 14 and 30 days. The repayment is made in one lump sum. For online payday loans, lenders usually withdraw money automatically from a borrower’s bank account when the due date comes.
Pros and Cons of Payday Loans
For some, payday loans will be a perfect solution, while others can find them useless. Here are some pros and cons to be aware of to determine whether payday loans are right for you.
Pros:
- Bad credit friendly. Payday cash advance loans don’t take into account your credit score. This makes them a great option for people who can’t get financial help from a bank or credit union. There are even ways to improve your credit score with a payday loan;
- Fast funding. You can get the needed amount within one business day. Sometimes it is possible to make a direct deposit by the end of the same day you apply;
- No hard credit checks. Payday loans are not reported to credit bureaus. Your credit score won’t change if you pay on time;
- Easy to apply. In most cases, you can complete an application process online in just 5 minutes.
Cons:
- Income confirmation may be required. Payday lenders want to see that you can repay the funds as agreed. Thus, they will check your solvency before lending;
- High interest rates. Payday loans are expensive. An APR over 400% may be charged if you have bad credit;
- Limited terms. You need to repay the whole sum within several weeks. If you fail, late fees may be charged. Additionally. A lender may roll over your loan, making it even more expensive.
- Risk of debt accumulation. If you’re late on your loan repayment, a lender can start a rollover procedure. This means that it will add finance charges and late fees to your principal amount, assess a new interest rate, and move the due date. Each rollover results in higher new charges. This way, your debt can easily get out of control.
Is It Possible to Get Payday Loans with Same-Day Funding?
Most lenders set common funding terms that are within one business day. However, sometimes it’s possible to get money faster. If you apply in a store, a lender can give you cash on hand or offer a check. If you’re going to get an online payday loan, you can receive the funds on the same day if you manage to apply, get approved, and sign a loan agreement before noon on a working day.
How to Get Online Payday Loans Fast?
The fastest way to get a payday loan is to apply in a store. This way, you can get the funds right after a payday loan lender approves you. An in-store application requires you to fill out a form, attach required documents, for example, a bank statement, and wait a bit for a loan decision. If approved, you can leave an establishment with cash. However, it will take you some time to get to a store, which may be inconvenient in some cases.
When it comes to online payday loans, you can send a loan request from anywhere and get the funds via direct deposit. Here are simple steps to follow:
- Choose an appropriate lender with reasonable loan conditions.
- Fill out an online loan request form on its website.
- Get a loan decision via email.
- If approved, read and sign a loan agreement.
- Get the funds as soon as the next business day or on the same day.
Thus, both offline and online options can be used for financial emergencies. They are much faster compared to traditional loans. This is because conventional lenders perform hard credit checks and need more time to complete them. Therefore, you will have to wait for several days before you get approved.
Where to Get a Same-Day Payday Loan
Same-day payday loans are available from brick-and-mortar payday loan providers, online lending companies, and some credit unions. Loans from credit unions are called payday alternative loans (PALs). They usually have longer terms and lower fees but also require you to go through a hard credit check. Additionally, you need to be a member of a certain credit union.
Also, you can find a payday loan company that can connect you with a suitable payday lender from a huge database of trusted service providers. Such connecting services can be a great option when you don’t have much time to do your research.
Factors to Consider Before Getting a Payday Loan Online
Online payday loans should be taken seriously. Here are some questions you should ask yourself before going into debt:
How much will I need to pay back? Online payday loans can be expensive. You need to know the exact amount you must repay and make sure it’s not too hefty.
Does it suit my budget? Calculate the amount that remains after you make all your regular monthly payments and other financial obligations. Then, make sure your final payday loan cost is within your means. Keep in mind that you need to repay the whole amount at once.
Are there any alternative options available? Consider borrowing from your friends or applying for a traditional loan with a cosigner. This will help you save money on interest.
Key Takeaways
Payday loans are one of the fastest and easiest to get borrowing options. Sometimes you can get the needed amount on the same day. Typically, funding terms don’t exceed 24 hours if you apply on a business day. At the same time, you need to use payday loans cautiously and consider their pros and cons carefully. Make sure you really need this form of emergency assistance before you get one.
