A contractor who needs to buy $500 worth of materials so he can finish a job and get paid, a college student whose car has just broken down, a single mother who can’t work for two weeks due to illness: all of these people might be in need of some quick cash. The good news is that same day loans for bad credit are indeed available; the bad news is that quick same day cash loans often come with some serious strings attached.
Let’s take a quick look at how all this works, what your options are and whether bad credit same day loans are a good funding option for you.
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What Is a Same Day Loan?
Just like the name suggests, this can refer to any instant same day cash loan, meaning one for which the approval process takes less than 24 hours. Aside from this, sameday loans can be of many different types: unsecured or backed by some sort of collateral, short or medium term, taken out online or at a place that offers fast same day loans near me.
Note that “same day” can be a little misleading. In general, you can expect to receive the funds in your bank account the next business day.
What Kinds of Same Day Loans Are There?
As we mentioned, same day loans come in all the flavors of the rainbow. Some of the most popular options include:
- Payday Loans
With a payday loan, you’re essentially borrowing money against your next paycheck. These are very easy to get even for poor-credit individuals, but beware: the very best payday loans still charge awful interest rates. If you have to “roll over” or renew the loan instead of paying it off within a few weeks, you’re likely to find yourself in financial trouble.
- Personal Loans
Unlike payday loans, personal loans are meant to be paid back in installments over several months or even years. Their application process is more difficult and requires a fairly good credit score. On the other hand, if you use an online service to check for which loans you pre-qualify, it is possible to get a personal loan and receive your money within a day or two.
- Title and Small Collateral Loans
Places that lend out money, naturally, want to be sure that the money you borrow will be repaid, or at least that they’ll recover the loan amount in some other way. If you leave something of equal or greater value with them, they can (at least in theory) offer you a better interest rate since their investment in you is safe. Two common ways of doing this are leaving an object of value with a pawn shop with the intention of redeeming it later, and signing over title to your car to a lender until the loan is repaid.
Since these loans are secured by something tangible, they’re easy to get and can therefore be some of the best same day loans for bad credit. Their interest rates and fees are usually very high, though. Assuming you have a steady monthly income, a payday loan will often work out cheaper.
How to Select a Same Day Loan
The advantage of getting a same day money loan is obvious: cash in your hand at the moment you need it. This isn’t to say that it’s a perfect solution: at best, you’ll have to repay more – and possibly much more – than you borrowed initially. When comparing different options, keep the following in mind:
- Don’t be taken in by sketchy lenders advertising “no fees” or something similar. The only number you should worry about is the APR, which represents the total yearly interest rate including any fees. Importantly, this assumes that you pay the loan back on time.
- Plan for the worst, and don’t place yourself in a position where you might have to pay more than you can afford. If you borrow against your car on a title loan, for instance, you may end up losing it even though you owe much less than the vehicle is worth. Similarly, if bad luck causes you to miss repaying a payday loan, you will be on the hook for much more than you planned.
- Weigh as many options as you can against each other. Different lenders sometimes offer wildly different interest rates to someone with the same credit profile, so use online comparison tools to find the best deal.
Where Can I Get a Same Day Loan?
Businesses that provide fast same day loans near you probably advertise heavily; there’s no need for us to cover the same ground here. In most cases, you’ll want to avoid storefront lenders in any case: while what they do is usually legal, that doesn’t mean that it’s really legit. Your best bet is to apply for a same day loan online using a service like one of the following. Note that these are shopping tools: they don’t provide loans themselves, but by allowing them to contact a variety of lenders on your behalf, you can speed up the process significantly and improve your chances of getting the best possible terms.
MidWeekPay organizes both personal and payday loans for their clients. They recommend that you earn at least $1,000 a month to obtain pre-qualification with the lenders in their network. Significantly, though, they’re willing to take self-employed earnings into account, making them a good option for anyone who doesn’t have pay stubs but can prove their ability to repay the loan in some other way. If applying through MidWeekPay, you may receive loan offers within less than an hour, though getting the money transferred to your bank will take longer.
DirectLoanTransfer specializes in payday loans running to between $100 and $2,000, available in your bank account between 24 and 48 hours after you fill out their simple online form. As long as you’re at least 18 years of age and have a regular income (including disability and Social Security payments), they can probably refer you to an approved lender even if you have a bad credit history. Be careful when reviewing the lender’s terms, though: a low credit score will generally mean paying a higher interest rate.
Money2me offers one of the slickest and fastest application processes out there, including the option of saving your personal particulars in case you want to apply for another loan at a later time. How much you’ll be able to borrow depends on your credit score and state law where you live, but it is possible to get a payday or personal loan for up to $5,000 through them the very next day.
Perfect for younger people or those who don’t have enough time to research all their options in detail, PayZonno makes it easy to find a loan that’s appropriate for you without having to understand all the financial jargon involved. Though your credit score affects which lenders they’ll show your application to, even those with a limited or poor credit history can make use of their services and normally get same day money loans with a minimum of fuss and hassle. Turnaround times run to about one day.
MoneyAids is a one-stop shop for online same day loans for people with bad credit. If you’re in this position, the interest rates you’ll have to pay will still be steep, but using MoneyAids to apply to multiple lenders at once ensures that you will get the best deal available. The whole process, from filling out their online form to them depositing the money in your bank account, normally takes under 48 hours and often happens much faster than that.
What Are Some Alternatives to Same-Day Loans?
It cannot be said often enough: online emergency loans should be used only for real emergencies. Before you take the plunge and commit to paying a high interest rate (and maybe even risk losing your collateral, like your car), it’s probably a good idea to think about other ways to resolve your financial dilemma:
Though this is easier said than done, every family should ideally have three to six months of living expenses stashed away to deal with unexpected setbacks. Get an emergency fund in place before you start saving for luxuries like a vacation or new car.
- Credit Cards
Though credit cards also come with relatively high interest rates, even people with bad credit can qualify for them. Most cards allow you to take out a cash advance; that is, borrow money on the card without making a purchase at a retailer.
If you’ve been with the same company for some time and are a valued contributor, your employer may be willing to let you have your paycheck a few weeks early, without having to pay interest. Whether this option is open to you depends on company policy.
- Borrow from Friends and Family
The people who know you best may be willing to help out if you strike hard times. Just remember that few things ruin a relationship as quickly as disputes over money.
- Traditional Loans
If you can put off some expenses for a few days, your chances of getting a competitive personal loan from the bank improve considerably. In particular, if you’re already a member of a credit union, ask them whether they offer payday alternative loans. These are a lot like payday loans, but much cheaper. Remember, too, that banks aren’t the only place to turn to. You can, for instance, read through Blue Trust loans reviews to see if their installment loans will suit you better than a regular payday loan.
We all hope that bad things won’t happen to us, but it’s certain that Murphy will come knocking on your door sooner or later. When this happens, the most important thing is not to panic. You do have some options at your disposal, even if you have awful credit. Take a few minutes to do your research and find out which will work best for you – if you take on debt you’ll have trouble repaying, you’re only deferring the problem, not solving it.