When you need money on a short-term basis, there is no faster way to receive a sum than through a same-day loan, however, while they are one of the only ways to receive an amount from a lender on the same day, there are a few requirements that will need to be met for you to be eligible to qualify for a same-day loan.
Same-day loans can be a lifeline for those who need cash in an emergency or to meet any other sudden urgent needs, so it’s always worth checking that you are eligible so that you can immediately apply for a loan and access the funds when they are most needed.
Here are all the requirements that will need to be met for you to qualify to take out a same-day loan.
What Are Same Day Loans?
Also commonly referred to as ‘emergency loans’, same-day loans are short term loans that disburse a sum of money to you the same day you apply for it.
These tend to be fairly small amounts that are designed to only cover expenses over a few weeks or months at most.
The drawback to same-day loans is that they will be more expensive than other methods of borrowing money, especially because they will often carry an enormous annual percentage rate (APR).
While the average APR on credit cards that are assessed interest is 16%, same-day loans can reach up to 400% on their APR, which is why they are considered to be a last resort.
Requirements And How To Qualify For Same Day Loans
While some lenders can have one or two of their specific requirements to be able to qualify for a same-day loan, there are a few essentials that are shared among all of them. These requirements are:
- 18 or over
- Employed and resident in the UK
- Have your wages paid directly to your own UK bank account
- Have a valid debit card associated with the account
- Have a valid email address and phone number
- Current verifiable employment or another steady income source
Qualifying for a same-day loan will usually only require you to meet basic eligibility requirements, making it easy to access for those in need when they are desperate for money in a short-term situation.
How To Apply For A Same Day Loan
While applying for a same-day loan used to be much more complex and required much more information and personal details, it can now thankfully be applied for much faster and easier and can usually be organised in less than an hour.
1) Visit Website And Fill Out Online Application
To make them as easy to spot as possible, many lenders will have a ‘same day loans’ dedicated section on their websites.
If you can’t find it on the website itself, type in the lender’s official name on your search engine along with ‘same day loans’ to take you directly to that area of their website.
Read through the information and details of the loan posted on the website and scroll to the bottom to find a link to ‘apply’ where you will be given an online application to fill out personal details, including your current employment, age, and email address.
2) Confirm Details
Confirm your details and you will shortly receive an instant decision on whether you have qualified or not.
Because same-day loans are designed to be instant, you should receive confirmation after a few minutes or an hour at most.
3) Select Amount
After your details have been confirmed, select the amount you would like to take out with the loan.
The maximum amount most lenders will accept a person can take is between £3000 and £5000, with the minimum usually being £100, however it can be lower than this in rare cases.
4) Sign Consumer Credit Agreement
Once you have qualified for a same-day loan, you will be sent a consumer credit agreement which is the financial agreement made between both parties confirming that the lender agrees to provide the borrower with a fixed amount that will need to be paid back over a flexible repayment schedule.
Benefits Of Same Day Loans
Alongside how fast the money will be in your account when taking out a same-day loan, there are a few other major benefits that make it ideal for short term borrowing, for example, it is a very transparent process of loaning money with no administration fees, with it being very upfront on what you will be receiving once you apply.
The quick application also makes same-day loans incredibly convenient, with the online applications only requiring essential information and not asking for specifics such as birth certificates, simply fill in the essentials, and the money will be in your account the very same day.
These sorts of loans are also very flexible, with the borrower usually being required to pay back the amounts from between 3 to 9 months, however, this date can be even longer depending on agreements made with the lender.
Unlike many other loans, you also won’t need to have an excellent credit score since same-day lenders tend to be more likely to approve any borrower, even if they have bad credit.
This is because the lender is less interested in whether a borrower has a reliable financial past and is more focused on them paying back the amount here and now.
Finally, a same-day loan is an unsecured loan, so you won’t need to use your car, home, or any other valuable assets for security.
Negatives Of Same Day Loans
While they are extremely fast, flexible, and incredibly convenient, same-day loans are considered a last resort loan that you should only take out when absolutely necessary and there are a few reasons for this, with the main one being the incredibly high interest rates, often being up to 400% APR, which can very quickly cause the cost of borrowing to spiral.
Signing up for a same-day loan also means that the lender is given full access to your bank account, which they can keep stored in their database despite you only taking out money for the day.
This means you will have to contact the lender afterwards to ensure they do not continue taking payments directly from your bank account, which many people are suspicious of.
Taking out same-day loans irresponsibly can also quickly lead to a cycle of debt as if you fail to repay the debt, you could end up taking out another loan to pay off your existing finances, which is why these loans should be taken out with extreme caution.
Same-day loans are a fast and convenient way to acquire a sum of money when you don’t have the luxury of time on your side.
While it can be applied for incredibly easily and quickly, these types of loans should always be reserved for emergencies or very rare situations when there is no other option, so it is usually advised to try and avoid them and apply for other long-term loans in advance so that you don’t end up owing a much higher amount back to the lender.