Same Day Loan: What It Is and How Does It Work?

There are times when we are faced with emergency situations and we need extra cash. Whether it is an unexpected bill, an emergency home repair, medical needs, and other reasons, getting a loan is one of the easiest and fastest ways to get that extra fund that we need. 

There are several types of loans to choose from. However, if you need funds as soon as possible, you might want to consider getting a same day loan. You get to have the funds that you need on that day but usually at a higher cost compared to other loan types. Here’s everything you need to know about this type of loan if you’re considering getting it. 

Same Day Loan

As the name states, a same day loan is the type of loan that gets disbursed the same day when you applied for it. It is only a short-term loan type and usually has higher interest rates than other loan types. If it’s an emergency and you need extra cash on that day itself, same day loans are what you need. However, if it is not that urgent and you can still wait for a few days to acquire funds, you might want to explore other loan types. The main advantage of a same day loan is its speediness in disbursing cash. 

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How Does It Work?

Same day credits could vary in the duration of its term. You could choose to pay it for a term of just a few weeks or months, depending on your capacity to pay. Because of this, this type of loan is usually intended for borrowing small amounts only. There are actually several types of this loan. Read along and see which one suits you best. 

  • Payday Loans – This type of loan is easy to get whether at storefronts or even online. It works by allowing the client to borrow a certain amount that he needs until his next paycheck comes. You could get a payday loan even without getting a credit check, making it a viable option for those who have bad credit history and need emergency cash on the day. 
  • Pawnshop Loans – In this type of loan, you’ll be offering something valuable you have to be a collateral for your loan such as jewelleries or gadgets. In return, you’ll get the item’s value in cash and the pawnshop would hold on to the item until you pay the loan. In case you can’t pay the loan, the pawnshop gets to keep your item.
  • Title Loans – In title loan, the vehicle you own will serve as the collateral for the loan. You get to borrow cash in exchange for your car’s title. Although you can still drive around and use your car, the lender can take your car if you aren’t able to pay the loan. 

Those are the most common options you could choose from if you need a same day loan. If you need emergency cash and you don’t have anywhere else to go, a same day loan could help solve your financial problem.

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