The current availability of same day loans means those faced with cash emergencies will see them as attractive products, though they will certainly come at a price. As same day loan lenders are prone to targeting small earners who do not receive enough income to get by, the expense of such quick same day loans is usually a lot greater than with more standard personal loans.
What are Same Day Loans?
Similar to payday loans or other short term loans, same day cash loans are a type of unsecured loan where an amount of money is wired to the customer’s bank account and is subsequently repaid with interest. What sets them apart from other unsecured loans, however, is that they are renowned for being incredibly quick loans. Same day loans aim to get any money requested to the customer the same day they fill out their application form. Borrowers can apply for same day loans online for the added ease and speed of getting a decision within minutes, and if successful, they will receive their money the same day. This short time to delivery of funds upon receipt of application tends to be the same whichever type of lender is used: payday loan companies, online lenders, pawnbrokers and more conventional money lenders will all aim to get the money to the borrower the same day if possible, as long as the application is made before a specified cut-off time. In addition to this, some peer to peer loans are now available on a same day basis.
Same Day Loans for People on Benefits
A same day cash loan amount depends on an individual’s circumstances and the same day loan lender, though providers can offer as little as £50 and up to £1,500. Though those who are earning a regular salary are more likely to be considered for higher amounts, same day loans for unemployed customers are still evident on the market. Most companies provide same day loans for the unemployed to help them out in sticky financial situations, though it is a requirement that they will still need some form of income, such as government benefits. Same day loans for people on benefits have the same application process as loans for those in work with the sole exception of the applicant inputting how much they receive in benefits, making these quick same day loan products still dangerously easy to obtain.
Bad credit loans often feature in the form of same day loans. Bad credit loan lenders don’t make decisions as to whether the applicant has a good credit history or not so even those with a history of not making repayments on time can be successful with obtaining same day loans. No credit check is made on the customer during the application process, eliminating any hassle so the borrower can receive their money instantly. For responsible borrowers of same day loans, no credit checks may result in them being able to begin building up their credit rating if they make their repayments on time so they can be considered for loans of greater amounts in the future.
Problems with Same Day Loans
Customers will usually have up to 21 to 31 days to make a repayment. These short term loans can really make it difficult for borrowers to make a full repayment by the end of the loan term as interest is charged on a daily basis at an eye-watering rate. There are usually loan charges, such as an initial transaction charge, attached to most same day loans. No fees variants are difficult to come by, though a select few providers do advertise their products with no additional costs for a simple and straightforward way of borrowing much-needed money.
Needless to say, the ease of acquiring same day loans makes it very easy for people to get into financial trouble when using them. Any borrower that gets into difficulty with debt should contact some of the many charities and government-approved bodies offering free debt advice, as effective debt management in the future may mean the person does not need to rely on such risky financial products.