A same day payday loan is one option for consumers who are having monetary problems. These loans offer cash fast to would-be borrowers who may not have other resources to turn to when they need money right away. There are pros and cons to a payday loan, which will be outlined in the following article.
A payday loan is basically a cash advance against your upcoming paycheck. The lender offers the borrower cash based on their projected earnings and pay date. They are short-term loans that are available for borrowers who may not have other options.
No Credit Checks and Minimum Requirements
One of the most popular reasons that borrowers turn to a same day payday loan is the fact that the company will not require a credit check. Borrowers who are dealing with credit issues are not often eligible for a typical loan from a bank or credit union, even when they are an active member of the facility. They may not have credit cards or savings to fall back on when an emergency arises, so they are left scrambling for cash in another way.
Payday loan companies more often than not skip the whole credit check process. This means that most people are eligible for a loan, despite any past credit problems, even when they have dealt with repossessions and bankruptcies.
Another reason same day loans are a popular choice is the fact that there are few requirements, even though there isn’t a credit check. Most companies will require the following to be approved for a loan:
- Phone number
- Social security number
- Employment information
- Banking information
The company will need your employment information to verify that you do have a job and can repay the loan when it is due. They may ask that you fax or email their company a copy of your last paycheck. They will also use the amount you make to determine the loan amount you will be approved for.
The loan company will also require your banking information. You will need to have an open and active checking account to be eligible. Be sure you do not have any active overdrafts on your account when you apply, or you will be turned down for the loan. Some companies will also permit you to use a savings account. When the loan is approved, the recipient receives the money through their checking account as a direct deposit. This is also how it is paid back at a later date.
Payday Loans can help in an Emergency
When an emergency situation happens, many people have savings to fall back on. Unfortunately, millions of Americans are living paycheck-to-paycheck, meaning they have very minimal wiggle room when it comes to their available cash. They often are already borrowing from one credit card to pay on another or racking up late payments on utility bills because they have to put off a payment for another week.
When an emergency happens, these individuals need help from another source. A quick same day loan will grant them the cash that they desperately need to fix the problem without taking money away from other necessities.
A payday loan can also be used for anything the borrower wants it for. A bank or credit union will require a reason for the loan which often makes it even harder for the borrower to apply. Same day companies do not ask or care what the money is needed for. Borrowers can use the money they receive for the following:
- Utility bills
- Car payments
- Credit card bills
- Home repairs
- Car repairs
However, this list is small compared to the needs that payday loans can fulfill. Many people simply need extra cash in order to get through the week until their paycheck hits their account. They use the cash for gas, lunch, turnpike tolls, and parking. Being able to utilize an easy cash source makes their lives less stressful, as well.
The Ease and Convenience of Same Day Loans
Same day payday loans make it easy for borrowers to get the cash they may desperately need without jumping through hoops to do so. Banks and credit unions have waiting periods to receive the loan if the individual is even eligible to begin with. The same day loan will provide an answer that very day, usually within minutes of uploading the application. Once approved, the cash is then directly deposited into the checking or savings account that the borrower supplied in the application. This generally takes less than 24 hours to go through, an important factor when one needs the cash for an emergency situation.
Borrowers also enjoy this type of loan because it can all be taken care of online. There is no need to head to a brick-and-mortar store for a loan. Simply hop online day or night to fill out an easy application. There is also the fact of anonymity to take into consideration. No one but the borrower and the lender knows that money is being borrowed, an important concern for many people who wish to remain anonymous.
Cons of Same Day Payday Loans
Borrowers should remember that they will be required to repay the loan as soon as they are paid again. For many, this starts a cycle of debt, as the borrower realizes they can’t repay the loan without needing another one right away. The company will also charge a high-interest rate for the loan, as they are considered unsecured loans when there is no credit check. It’s important to use these loans only in an emergency situation and after all other avenues have been pursued. A loan from a trusted family member or friend, credit card advance, or advance from an employer may be a better choice for many.
However, many men and women find same day payday loans to be a lifesaver when the situation is an emergency. Filling out an easy, online form is the next step to receiving the cash they need to take care of their problem. It’s quick and easy and you will be given an answer in just minutes.