There may be instances, such as a medical emergency or car repair, where you need to access additional funds quickly.
It is possible to both apply and receive a loan on the same day, and this typically takes place with online loan lenders. However, it is important to note that some banks and credit unions may offer same day loans to their customers too.
What are the Different Options Available for Getting Cash on the Same Day?
There are a number of different same day loans available – all of which enable prospective borrowers to receive cash on the same day that they are approved by the lender for the loan. These include the following:
- Payday Loans
Payday loans allow borrowers to hold out until their next payday. They are thus intended for any unexpected costs that may arise in between paycheck dates, such as emergency medical bills or home repairs.
There is typically a cap on the amount that you are able to borrow with payday loans, as well as additional fees and interest that will be charged on top.
Payday loans do not require hard credit checks, making them a popular choice amongst those with lower credit scores who may not be eligible for alternative loans.
Due to their short-term nature, as well as high annual percentage rates charged on top, many payday loan borrowers cannot repay the loan by the initial due date. As such, the payday loan is rolled over, and interest is accrued. This can lead to cyclical debt for the borrower.
- Pawn Shop Loans
Pawn shop loans are another type of same day loan that allow prospective borrowers to use their items of value as collateral to get approved quickly for funds. These items could include antiques, electronic devices and even jewellery which could all be pawned for money.
The pawn shop will provide you with the funds that equate to the value of your item and will keep hold of it until the loan is paid off in full and on time. You will then receive your item back if you have repaid the loan in full and on time.
Since pawn shops charge their borrowers with additional fees on top of the loan repayments, there is a risk that you may not be able to repay it on time, meaning that there is the risk you may not receive your item back.
- Title Loans
Title loans allow borrowers to receive cash on the same day of applying by using their owned vehicle as collateral. This makes title loans secured as the loan amount will be secured to the value of your vehicle.
In the repayment period, the lender essentially owns your vehicle. If you default on the title loan repayments, your car could thus be repossessed by the lender.
Title loans do not typically require a hard credit check so they are a popular option for those with low credit scores who own a vehicle.
Similarly to payday loans, title loans charge extremely high interest rates and additional fees. In addition to this, like with pawn shop loans, there is the risk of losing your collateral, your vehicle, if you cannot make the repayments in full and on time.
What Other Ways Can I Get Cash on the Same Day Without Taking Out a Loan?
If you do not want to run the risks of taking out a loan, or have already taken our or defaulted on a number of loans previously, then alternatives should be considered. These include the following:
- Borrowing Money From Family or Friends
Borrowing money from family members or friends allows you to avoid the high interest rates and additional fees charged by banks, credit unions and loan lenders. However, it is important to note that if you choose to follow this route, you should certainly provide your family member or friend who is providing you with cash with a clear repayment plan.
- Credit Advance
Credit card holders may be able to take out a cash advance from their bank, credit union or cash point which will provide them with immediate access to cash on the same day.
Cash advances do typically incur high interest rates and fees, although these are not likely to be as high as same day loans.
- Speak to Your Employer
It may be possible to advance your wages or paycheck if you are in need of emergency funds. This can help to avoid the high interest fees or additional fees associated with taking out a same day loan.
You should thus speak to your employer to see if you are able to receive a portion of your wage earlier than your payday.