Same-day loans are a great way to get funds quickly when you need to cover expenses. These loans come with quick approvals and can get you funds as soon as the same day you apply. But you may be wondering how same-day loans work and what to expect when applying for one. Let’s dive deeper into some more information about same-day loans so you can decide whether this option is right for you:
How do same-day loans work?
A same-day loan is a loan that you can apply for, get approved for, and receive funding from all in the same day. This differs from other loans that can takes days or weeks to get you the funds you need. Here are some common examples of same-day loans:
- Cash advances: Cash advances are small-dollar loans that can get you a few hundred dollars to cover expenses before payday. Then, you’ll repay these loans in two to four weeks when you get your next paycheck.
- Title loans: Title loans are secured loans that let you use your car title as collateral. You can typically receive funds worth 25 to 50% of your car’s appraised value, and can keep driving your car as you repay the loan.
- Lines of credit: Lines of credit are flexible loans that let you draw on funds as needed, up to your set credit limit. With these same-day loans, you’ll only pay interest on the amount you borrow.
3 things to expect when getting same-day loans
Here’s what you can expect when getting a same-day loan:
1. Easy application process
Same-day loans often come with quick and easy applications that you can complete in just a few minutes, in store or online from the comfort of your home. You’ll just need to provide several personal and financial details, including your name, address, and proof of income.
2. Instant or quick approval
Once you submit an application for a same-day loan, many lenders will review and approve you very quickly. This means you may hear back instantly or within a few minutes after you apply.
3. Same-day funding
If you get approved for a same-day loan, you can expect to receive the funds fast. The lender should confirm funding details immediately after the instant approval goes through. Then, you may get the funds you need as soon as the same day you apply or within 24 hours so you can cover expenses quickly.
The bottom line
Same-day loans are for people who need money right away. They’re easy to apply for, approval is instant or within a few minutes, and funds can be in your account the same day. Interest rates and fees may sometimes be higher, but these loans can help solve your immediate financial problems. Compare lenders and loan options to find the right same-day loan for your needs.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.