Stuck in a financial bind? Additional expenses often arise in a month when you least expect them to. From house repairs to car problems or a medical emergency, you never know when you might need a few hundred dollars to tide you over until your next paycheck arrives.
So, what can be done at a time like this? If you don’t like asking your friend or family members for a loan, your next best option is to go for a loan funded on the very same day. It sounds too good to be true, right. Well, there’s a catch.
You have probably guessed what we are going to say ― interest rate.
Let’s not jump to any negative conclusions. If you are truly interested in getting a same-day loan, then keep reading https://cityfinance.com.au/our-loans/same-day-loans/“.
What is a Same-Day Loan?
As the name says, a same-day loan is a type of emergency loan funded on the very same day you apply for it. Since it is a short-term loan, a few contingencies are attached, such as high interest rate, short repayment period, and a document showing proof of income.
The most important thing to pay attention to is the interest rate. A same-day loan carries an APR of 400%. In comparison, the APR for a personal loan with a 1 year repayment period is 9.58% and for credit cards is 16.3%.
These rates might seem daunting, but it doesn’t mean you shouldn’t apply for a same-day loan. The entirety of your weekly or monthly payments depends on how much you make. Before applying for a loan, create a budget and see how well you will fare after setting aside the repayment amount. If your budget pays for utility bills, groceries, rent and allows you to save a little on the side, you are good to go.
Getting a Same-Day Loan
Online lenders or payday lenders often provide a same-day loan. While they give you a loan that you get immediately, it comes with a hefty price.
As mentioned earlier, the interest rate on payday loans is relatively high. Before applying for it, you should always use an online calculator to determine how much you can pay.
Here’s an example to help you understand this:
|Loan Amount||Loan Terms||Weekly Payments||Credit Costs||Total Amount|
Basic Information Needed for a Same-Day Loan
One of the best things about a same-day loan is that lenders don’t ask for any detailed information for the application process. Here’s what you need to provide:
- Phone Number
- Email ID
- Proof of Identity (Passport or Driver’s License)
- Social Security Number
- Proof of Income (Pay Stubs)
- Annual Income
You might have noticed that we didn’t mention credit scores. Well, most same-day loans don’t consider credit score when giving a loan. However, they take a look at your credit history to determine whether you have made your previous monthly payments on time or not and if you have any debts.
A low credit score does impact your loan terms. However, since the lenders look at other information too to determine your eligibility, you will probably get the loan.
A great way to lower the interest rate on a same-day loan is to get a co-signer. This can also speed up the process as the lenders will have the assurance that they will get their money from the co-signer if you default on the loan.
Uses of a Same-Day Loan
There is no limitation on how you can use a same-day loan. You can use it for emergencies such as medical bills, car repairs, home repairs and renovation and dental costs for leisure such as travelling, taking a trip to Disneyland or planning an extravagant proposal.
In case you are wondering why you can’t approach a bank for a same-day loan, there are two things you should know: First, most banks don’t offer a same-day loan, and second if they do, the loan is referred to as a payday loan that is given in 3 to 7 business days. As for credit unions, they too take around 7 days to process the loan. Moreover, they have stringent requirements, and one of these happen to be a “Good” credit score. So, your best choice is an online lender through which you can get a same-day loan from the comfort of your home.
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