What You Should Know About Same-Day Loans?

A same-day loan is essentially a form of short-term financing that is approved and deposited within the same day you apply. This makes them ideally suited for dealing with emergencies like an unexpected medical bill or car repair.

On top of that, most same-day lenders have minimal to no credit requirements, which means that you can obtain online same-day loans even with bad credit. However, the issue with these loans is that they typically come with shorter loan terms and smaller loan amounts than most traditional loans.

Furthermore, these loans also tend to have excessive fees and high-interest rates, which makes them more expensive than most other forms of financing. However, the lender you end up partnering with will also play a big role in your fees.

This is why using a credit service like CocoLoan is recommended, as you can easily compare multiple same-day loan offers to find one that fits your budget.

How to Apply for Same-Day Loans?

The easiest and safest way to apply for a same-day loan is through an online credit broker service like CocoLoan. This is because they usually vet all the lenders in their network to ensure that borrowers are only matched with reliable and trustworthy loan providers.

Sarah Ross, the co-founder of CocoLoan, added, “We have designed our online platform to be fairly simple to use, which ensures that anyone can get connected to a lender, be it through their computer or mobile phone.” However, remember that you first need to meet a few eligibility requirements before applying for a same-day loan.

This means that you need to:

Be 18 years or older
Be a permanent US citizen or resident
Have an active checking account
Have a steady income stream

If you fulfill these requirements, then the steps that you need to take to successfully obtain a same-day loan are as follows:

#1. Submit The Online Form: The first step you need to do is to fill out the online pre-approval form, where you will need to input your personal and financial information such as name, phone number, bank account information, credit rating, etc.

This process should only take a few minutes to complete, at which point you can submit the form, which will be distributed to multiple lenders for review.

#2. Compare Loan Offers: If your application is approved, you can expect to receive loan offers from multiple lenders. You will then be able to compare the various loan offers to find the one with the most favorable rates and terms. Once you are satisfied with an offer, you can accept it by e-signing the loan agreement.

#3. Await Your Funds: Once the lender receives confirmation that you have accepted their offer, they will move to have the funds deposited in your account within 24 hours. And when you receive the money, you can use it for any purpose of your choosing.

Alternatives to Same-Day Loans

It is important to remember that the amount of money you are eligible to receive from a same-day loan can vary depending on your credit rating and income level. In other words, the lower your credit rating or your income level, the less money you will qualify to get.

So, if you find that you can’t get the amount you need, it pays to consider other alternative options, other than same-day loans. In this respect, some of the most common options include:

#1. Personal Loans

You can normally borrow a personal loan from credit unions and online lenders. These types of loans come with high loan amounts and are usually meant to be repaid in installments over the course of a few months. They also don’t require you to put up any collateral, with the only downside is that you need a good credit score to successfully qualify.

#2. 0% APR Credit Card

Some credit card issuers usually offer a promotional period of 0% APR for new credit cards. In most cases, these periods will last for about 12–18 months, which enables you to make interest-free payments toward your balance.

This can often be a good option, especially if you can repay the full balance within the promotional period. However, keep in mind that if your payments extend beyond this time frame, you will be charged full interest rates.

#3. Borrow From A Friend Or Family Member

While it can be very uncomfortable to ask others for money, doing so can enable you to circumvent the lengthy approval processes and high-interest rates that come with traditional loans.

Instead, you can agree on favorable terms with the person you’re borrowing from, but you must uphold your end of the deal. Failure to do so could drastically put a strain on the relationship.

FAQs

What is the best place to apply for a same-day loan?

While you can apply for same-day loans through a direct lender online, it is often best to use a credit broker service like CocoLoan. This is because they not only vet their lenders to ensure fair lending practices but also make it easy to compare offers to help you find the best rates and terms.

Do same-day loans require a credit check?

Yes, but it will depend on the type of same-day loan you apply for. For instance, most lenders will still conduct a credit check on your application because it’s a standard industry practice. However, some same-day loan options, like credit card cash advances, title loans, and pawnshop loans, don’t require a credit check.

Can I get a same-day loan with a bad credit score?

While most traditional lenders, like banks, will only offer loans to borrowers with a high credit score, most same-day lenders are usually less interested in your credit score. This is because they are more focused on ensuring that you can actually afford to repay the loan, which is also why you usually need to show proof of income in your application.

Are payday loans and same-day loans the same?

Payday loans are a type of same-day loan, as they can be approved and processed within the same day. However, payday loans are the riskiest type of same-day loans because they typically come with the most exorbitant interest rates and fees.

As such, you should be careful when applying for a payday loan because failure to make your payments on time can lead you to be stuck in an even worse financial predicament than before.

Bottom Line

Same-day loans are the best solution if you find yourself in a financial emergency with no way to pay your expenses. However, keep in mind that these loans are not a long-term solution, as the rates and fees can often pile up and end up trapping you in a cycle of bad debt.

A good rule of thumb is to always carefully weigh all of your loan options with the help of CocoLoan. This will ensure that you get a good idea of what to expect so that you only end up agreeing to a loan that you can reasonably afford.