When you need quick access to cash, you’re likely to turn to the most familiar sources: your checking and savings account, your emergency fund, even your credit card balances. But these sources for quick cash aren’t always enough to cover whatever costs you’re facing.
If you’re on a tight deadline, the stakes—and your stress levels—could be particularly high. While you may have never sought out or used a same-day loan in the past, this financial product can offer invaluable short-term relief if you need cash and can’t afford to wait.
The process for getting approved and paid out can also be fast and easy, as long as you know where to turn. Read on for a quick overview of how to get a loan in a day.
Same-day loans also referred to as payday loans, are short-term consumer loans just like many other loan products widely available at banks and other financial institutions.
What makes same-day loans unique is the speed of approval and payment: to make sure you get the money you need fast enough to make a difference, lenders expedite the application approval process to deliver payments as quickly as possible—sometimes within hours.
The lending amount for these loans is typically much smaller, ranging from hundreds of dollars to a few thousand dollars. Similarly, the repayment period for these loans also tends to be much faster, since they’re designed to provide short-term relief or, in some cases, an “advance” on your future paycheck.
Consumers may seek out same-day loans for a wide range of reasons, such as a missed paycheck, medical and other emergency expenses, a shortfall on cash, or other unexpected financial issues.
While a same-day loan can be a lifesaver in helping you avoid overdraft fees, late fees on your bills, and other consequences of missed or late payments, it’s important to understand the terms of these loans before you apply for and take out this money. Receiving quick funds on the same day can come at a steep cost: although credit card APRs tend to be between 15 and 30 percent annually, same-day loans charge rates as high as 400 percent—a massive difference.
The total amount you pay in interest can still be manageable if you pay off your loan quickly, but it’s important to be aware of the cost you’re incurring and the potential risk that comes with failing to make regular payments and pay off the loan.
If you become too reliant on same-day loans and are unable to catch up and pay your balance quickly, your total interest paid could easily exceed the amount you originally borrowed.
While a number of lenders offer quick loans with same-day approval, these lenders might not include your bank or credit union. Instead, you may need to seek out a lender that specializes in personal loans, including same-day or payday loan products.
These loans are serviced by both online and brick-and-mortar lenders. If you’re eager to get your loan payout as quickly as possible, an in-person lender may offer a faster timeline to filing an application, processing the application, and distributing your funds. You can conduct a Google search to find same-day loan lenders in your area, or you can ask friends or family if they recommend a same-day loan provider they’ve worked within the past.
Regardless of where you go to seek out this loan, make sure you’re clear on the approval timeline before you file an application. You need to have assurances from the lender that loans and payments can be processed and delivered on that same day if your application is approved.
Since same-day loans are designed, in part, to help consumers facing short-term financial emergencies, it’s often much easier to qualify for one of these loans as compared to the application requirements attached to other personal loans.
Most lenders will want to see proof of income, your latest statement for your checking account, and proof of identification as minimum requirements for any application. Each lender may have their own specific documentation requirements, so make sure you understand these application needs and are prepared when ready to submit an application.
In some cases, your lender may request additional information and documentation as part of the approval process. It’s important to make yourself available to supply this information as quickly as possible to the lender—otherwise, you run the risk of having your loan distribution delayed, or your application denied altogether.
