Payday Loans Online Same Day
Can I get a payday loan on the same day?
A same-day payday loan can be a great option if you are facing financial emergencies.
However, you will likely pay extra for short-term loans. These payday loans have triple-digit interest rates and are known for charging high fees. Payday loans can have fees as high as APR (or annual percentage rates) of almost 400%. Payday lenders usually lend small amounts, typically $500, and repayment is due by the next payday. Terms vary from one state to another.
Payday lenders are known for their same-day funding, but this doesn’t necessarily mean you will get your money the same day you apply. The lender will determine when you get funds.
Do I need a payday loan on the same day?
Payday loans are not to be considered as an option after all other options have been exhausted. It is essential to weigh the pros and cons of a same-day loan. Here are some things to consider.
Payday loans that are available in a matter of hours
- You could get cash fast if you need it: A same-day payday loan can quickly help you get the money you need.
- There is no collateral requirement: Payday loans can be used without collateral. You don’t need to pledge your car or other personal property to secure a payday loan.
- Bad credit does not necessarily mean you are ineligible for payday loans: Some payday lenders don’t perform credit checks.
- Lender options: It depends on the law in your state whether you can apply online for a payday loan or in a physical store.
Payday loans that are same-day available have their drawbacks
- Payday lenders who advertise low fees or high APRs should be avoided. They can lead to a highly high-interest rate and could charge you a lot. According to the Consumer Financial Protection Bureau, a $15 fee for every $100 borrowed is common. This amounts to an APR close to 400% for a 2-week loan. According to the Federal Reserve, the average interest rate on a personal loan of 24 months was 10.63% in May 2019 and 15.13% for credit cards. Credit cards or personal loans may be cheaper ways to cover a financial gap.
- Potential debt cycle: Payday loan debt can make it difficult to get out of debt. The CFPB discovered that four out of five payday loans are reborrowed in less than a month. This means you could be subject to higher fees. You may end up paying more fees than what you borrowed.
- This is not a long-term solution. Instead, you should create emergency savings account for unexpected expenses. You could end up relying too heavily on debt to solve underlying issues instead of borrowing small amounts of money here and there.
What are the alternatives to a same-day payday loan?
When you need money quickly, payday loans are not the only option. You can compare payday loans with other options to help you make the best decision for your situation.
You can use an existing credit card
You might want to tap into your credit card if you have one. Your current credit card interest rates may be lower than those for payday loans.
Get a payday loan alternative
Federal credit unions may offer payday alternatives loans. This reduces your application fee to $20. You can get loans up to $200 and $1,000 with terms up to six months.
You must be a member of a credit union for at least one month to apply.
Request a personal loan of up to $2,500
Unsecured personal loans are paid in monthly installments for a specified time. Lender terms can vary, but most commonly, they range between 24 and 84 months. This allows you to spread the payments out over time.
A cash advance is an option
You can borrow money against the available credit card balance with a cash advance. Cash advances are subject to higher interest rates and processing fees than regular credit card purchases.
Many apps offer cash advances that aren’t tied to credit cards.
- Earnin allows you to receive a pay advance for time worked at your job before getting paid. There are no fees or interest, and you can get as much as $100 per day. You just tip what you feel is fair. Earnin will automatically withdraw any money owed to you when your paycheck is deposited into a bank account.
- Branch is an app similar to Earnin. You can request an advance of up to 10% or 5% of your last paycheck. Your bank will automatically debit the money you borrowed. Except for instant deposits, this cash advance does not have any mandatory fees. Instant delivery advances cost $3.99.
The laws and regulations governing payday loans vary from one state to the next. Some states do not allow payday loans on the same day, while others have strict rules about how much and what fees payday loan companies can lend.
It’s a brilliant idea to first check the laws in your state and then read online reviews before you apply for a payday loan. Don’t forget to look at other borrowing options before applying for a payday loan