As luck would have it, an unforeseen circumstance has emerged. Living on an already tight budget, you have no idea how you will cover the expense. With a poor credit history and nothing to offer as collateral, obtaining a traditional loan will be hard. Not to mention, the application process can take days, if not weeks, to complete. All you know is, you need a solution, and fast. Fortunately, there are financial solutions for people in your position.
What Are Same Day Loans?
Same day loans are short-term installment loans. If approved, you could receive a lump sum of cash to put towards your financial emergency. Many people turn to these types of loans because they’re easy to apply for, don’t require a credit check, and can be deposited into your account within 24 hours. While eligibility requirements vary by the service provider, most applicants are only required to have a valid checking or savings account and a verifiable source of income to get approved.
Before You Apply
When all else fails, short-term installment loans are an efficient choice for getting out of a financial jam. It is only to your advantage, however, if you’ve considered the following:
Emergency Type
Several financial emergencies can arise when you least expect it. Short-term loans, however, are only ideal in certain situations. For example, a one-time expense like a plumbing repair could quickly be resolved with an installment loan. On the other hand, if your income has decreased due to a breakup or loss in the family, a short-term loan will not solve a long-term problem. That’s why it’s essential to consider the type of emergency before applying for a loan.
Affordability
You should assess your ability to afford a loan before applying. While you may need to borrow $1,000, if you can’t afford to pay it back, there’s no point in accepting it. Failure to repay a same day loan within the predetermined timeframe will result in a negative credit rating, higher expenses, and the inability to borrow again.
Review factors like your existing financial responsibilities and the monthly installments, fees, and interest to see what you can afford. It may be best to accept a lesser offer or look to other options to resolve your financial emergency.
Other Avenues
Taking on another monthly expense should not be considered unless you’ve exhausted other avenues. Have you asked a friend or family member to loan you the money? Have you crunched the numbers in your household budget to see if you can cover the emergency? Have you looked into financial assistance programs that could help fund all or a portion of your expenses? If the answer is no, consider starting with these steps first. You could successfully secure the funds without a loan or, at the very least, reduce the amount you need to borrow.
Lender
The final factor to consider is the lender. Not only are there thousands of short-term lenders on the market, but there are also a lot of scams. If you’ve decided that a same day loan is best for you, do your due diligence to ensure you’re working with the best service provider. Compare prices, check consumer reviews, and validate their legitimacy by inquiring about licenses. Once you’ve narrowed down your options, select the lender that best suits your circumstances and budget.
You never know when something could pop up, resulting in the need for more money than you have available. The good news is that there are financial solutions you can turn to for assistance. Same day loans are fast and convenient while providing you with the cash you need to get out of a jam. If you’re going to take advantage of such an opportunity, just be sure you’ve considered the above factors in advance.