Same day loans are loans that are applied for by borrowers in the morning and then funds are deposited in the by 6 PM the very same day.
When a borrower applies for a same day loan online time is of the essence. It is imperative that the online form is filled in prior to 11:30 Am. Once the application is submitted the same day lender does a quick soft credit check on potential beneficiary of the loan.
If the soft credit checks out then lender then transfers the requested funds to the borrowers bank account the same day. It should be noted that same day loans are not always distributed the same day as the lender might be too busy.
A bank is going to pull up all your records and credit history when they do a credit check. This is usually based on your credit score. In the banking industry any score below 620 is a bad credit loan. Borrowers in this category pose significant risk to the lender and they would rather not have you as a customer.
They will not give you any loan let alone a same day loan. This is when same day lenders come to the rescue.
Same say loan lenders are brokers and direct lenders. Both broker and direct lenders have their place. Brokers can aggregate a loan to many lenders.
They work on a system of first refusal. This means your same day loan will go down a tree full of lenders in the hope that one of them will lend to you.
Direct lenders may have better terms and conditions than brokers, this is where they can get you a better deal. The downside to direct payday lenders is that you are applying to only one company. There is a chance they will refuse you for a loan which can get frustrating. If you are confident of getting a loan then direct lenders probably are the best path to take.
If you apply after midday you have missed the cut off point and will have to wait to the following day to get your money.
The first step is to complete the online application form in less than 10 minutes. The form is easy to complete and you will need only your basic information to do so.
When you are completing the form, you will need to provide your name, your residential address, contact information, employment information, income details, and bank account details.
You should be at least 18 years old and you should a citizen of the United States to apply for the loan. Bad credit lenders often run soft inquiries on your credit report to know your financial background.
However, your credit score will not influence their lending decision. Lenders now use your income to make a lending decision. You often see payday loans with no credit checks advertised, the reality is that there is no hard credit check.
This is because some lenders believe that it is unfair to make a quick approval decision based on your credit score because your poor credit score may be as a result of a bad decision in the past. Hence, they will rather consider your current financial status in deciding if you qualify for the loan or not.
The lenders will review your application and inform you about the status of your loan in no time. That means you do not need to wait for long to know if you have been approved for the loan.
Once the lender approves your loan, you will need to sign the loan contract. This is to confirm that you agree to the terms and conditions of the loan. You will receive the cash in your account as soon as the next business day.
The interest rate depends on the lender. Lenders charge interest rates based on the risk involved in lending to the borrower. If the borrower has a low income or if he or she has a low credit score, the lender bears a high risk when they offer a loan to the borrower.
For this reason, the interest rate will be higher than that of a borrower who is more creditworthy. Fortunately, the lender will tell you all about the interest rate before you complete the application. Online lenders are transparent with their rates.
Lenders generally offer an amount that ranges from $100 to $1000 short term loans. The amount you will get will depend on the amount you will request and your creditworthiness.
If the lender is certain that you can pay the amount you are requesting for, they will give it to you. If not, they will offer you a lower amount.
Lenders provide several repayment options to their borrowers. You can pay using a check or you can set up an automatic payment. You can also pay directly into the lender’s bank account.
The most convenient loan repayment method is the automatic payment. With this option, you do not need to take further steps to repay the loan at the end of the month.
The cash will be paid once you leave enough money in your account by the next due date. If you are unable to repay the loan by the next due date, you may be charged a penalty fee. You will be informed about the late fee when you apply for the loan. Some direct payday lenders do not charge late fees and other lenders will give you some extra time before they begin to charge the late fee.
It is important that you avoid the late fee at all cost so that you maintain a good relationship with the lender. If you have a good relationship with the lender, you will be able to easily access another loan when you next need one.
Some lenders also report to some or all of the three credit reporting bureaus. If you pay your loan on time, you will be able to build a good credit history and improve your credit score. If you do not pay your loan on time, it will show on your credit report and that can further destroy your credit score.
One of the most important things to do when applying for a same day loan is to shop for options. Check from several lenders to make sure to are signing up for the best deal. When shopping for options, do it within a short period and you should also request for a soft inquiry so that it does not hurt your credit score. when shopping for options, compare amounts, loan rates, and terms.
Take an amount that you can comfortably pay for. You may be tempted to take higher since you qualify for it but stick to your budget.
You should also check the one that will be best for your needs; payday or installment loans. if you need a huge amount and you cannot afford to pay it all at once, opt for an installment loan.