While many loans will require you to agree with the lender on certain requirements such as how the loan will be repaid and over how long, same-day loans are a lot more spontaneous and are often taken out in sudden circumstances rather than someone planning to use them over a long period of time.
With that being said, despite being designed to be flexible and easy to apply for, it’s not always clear how exactly you can receive a same-day loan online, however once you know how, you will be able to acquire the money incredibly quickly if you ever need to take this loan out.
We have compiled a full and thorough guide of how same-day pay loans work, how you can apply for one online, and what drawbacks can come from applying for a loan and receiving money on the same day.
What Are Same-Day Pay Loans?
Just as the name implies, same-day pay loans are simply loans that can be applied for and paid out in the same day. They are designed to help people remain financially stable when there is an emergency or a sudden event that they don’t have the required funds to cover.
They are therefore designed to make ends meet until you are able to pay them back, the date of which depends on the lender and your current financial situation.
How Fast Can You Apply For A Same-Day Loan Online?
The main advantage same-day loans have over other types of loans is how quick they are, not only because the money arrives in your account within the space of a few hours, but also because applying for these loans online is very quick, making them the most reliable option when you need an immediate funding source.
Whether it’s an emergency that requires you to pay a large amount of cash upfront, an unexpected payment for a car, or a large sum that you need to cover in order to continue with university or college, same-day loans are designed to as a lifeline to help you out in these tough situations.
How To Apply For A Same-Day Loan Online
Same-day loans are designed to be quick, easy, and more convenient than other types of loans which can often take several days to arrange, which is why applying for a same-day loan online is a lot easier and more streamlined than other types of loans.
Most lenders will follow a similar application procedure on their websites that will allow you to apply and receive the money in your account that same day after providing a few details.
These are the simple steps you will need to follow to apply for a same-day loan online:
- Step 1. Visit the ‘same-day’ loan of the lender’s website and click on the ‘apply now’ option which is usually located under a few blocks of text detailing how the loan works.
- Step 2. Fill in the online application form with your personal details so that the lender can verify your identity. You will then need to wait for your application to be verified, this usually only takes a few minutes or hours at most as long as nothing within your application is blocking you from acquiring the loan.
- Step 3. Select the amount you would like to take out within the same-day loan.
- Step 4. Sign the consumer credit agreement which will act as the finalized financial agreement confirming that both parties have mutually agreed on the loan.
How Much Can You Take Out In An Online Same-Day Loan?
While this will depend on the lender and their own specific policies, the maximum amount most lenders can give someone in a same-day loan is £5000 with most people on average taking between £1000 and £2500 depending on their situation or emergency.
Most online lenders will also require a borrower to take out a minimum of £100 in a same-day loan to prevent people from loaning out small amounts constantly and instead trying to persuade them to only use same-day loans when absolutely necessary.
Drawbacks Of Same-Day Loans
While same-day loans are incredibly convenient and a helpful lifeline when you need a certain amount of cash in quick fashion, they also come with a lot of drawbacks which is why a lot of people will take a good amount of thought and consideration before taking one out.
Here are the main drawbacks that come with taking out a same-day loan:
- APR rate – Definitely the biggest issue that comes attached to same-day loans is their annual percentage rate which can reach up to 400%. This means you can easily end up owing far more than the actual amount you originally borrowed, making same-day loans an incredibly expensive loan to take out in comparison to others.
- They won’t build credit – Because these types of loans do not generally report to the credit bureaus, they will not improve or expand your credit score and can end up damaging it if you fail to pay the loan back in time.
- Lack of control over how you repay – Same-day loans are considered by many to be very predatory in nature because of how they enable a lender to demand a certain amount of money from a person when they are in need which can come with harsh penalties if they fail to repay in time. While the borrower gets some amount of control over when they re-pay, the maximum amount of time is usually judged by the lender, with them having more control than the borrower.
- Debt cycles – The additional fees and incredibly high interest that come with a same-day loan can make them incredibly expensive to pay off with many people unable to do so which can easily lead to a harmful cycle of debt if care is not taken.
Applying for a same-day loan online is a very quick and easy process that will only take up a few minutes of your time, however as easy as it is, it’s always advised to only take out this loan in case of an emergency or a sudden and unavoidable financial occurrence.