Often, we run into emergency expenses and same day loans make sense. It is not easy to borrow money from traditional lenders like banks receive cash immediately. If you have some doubts about this kind of borrowing, we are here to demystify some misconceptions.
Myth 1: All Same Day Lenders Are The Same.
There are tons of same day loan providers and are not created equal. Their rates are also different. They range from payday lenders, pawnshops, car title lenders, personal loan providers, to credit card companies. Payday lenders require you to repay the debt with your next paycheck while a pawn shop temporarily holds your valuable item in lien for a percentage of your cash, usually 20-60%. Similarly, a car title lender offers you a percentage (about 25-50%) of the value of your car for up to 30 days. You can also get money in advance from your credit card line and withdraw the money from your bank. On the other hand, a personal loan provider is probably the most reasonable option because their APRs are relatively low and you do not need collateral to secure the money. But this may delay for a few days.
Myth 2: The Applications are Cumbersome
Usually, there is no underwriting involved in same day loans, making it a convenient option for when you get into an unexpected financial rut. The waiting period is a matter of hours unless you reach out to a private lender. To apply for a payday loan, you need to go to the payday center and state the amount you need. The provider draws a contract with terms and conditions. The repayment period could a few weeks and a service fee may apply. When you sign the agreement, you write a check to the lender for the full amount you will pay at the end of the loan term. Then the lender gives out the money. As for the pawnshops and car title lenders, your provider assesses the collateral to give you a percentage of the resale value. As such, filing the application with a reputable same-day-loan lender should be a quick process.
You can get a same-day-loan approval today with or without a high credit score. But you will need proof of a stable income or a valuable item to make sure you can repay the money comfortably. Have the materials ready such as the document proving your car ownership. But you must repay in time otherwise your property may be repossessed.
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