Cash / Payday - Payday Loan

100 - 2 500
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Payday Loans
Same Day Payday Loan

One of the reasons why payday loans are so popular is that borrowers can get their money on the same day they applied for the loan. Same day payday loans enable persons to get money quickly in emergency situations.

Unlike banks and other traditional lenders that can take days or weeks to approve a loan, payday lenders can approve a loan and make the funds available in one day. Payday lenders are able to do this because they charge very high interest rates and tack high fees onto their products. The added profit from these fees and higher interest rates offsets the risks they take by approving loans instantly.

Another drawback to same day payday loans is that the amount of money available is often very limited. A person may only be able to borrow a few hundred dollars from such a lender while a traditional lender might make several thousand dollars available.

How an Same Day Payday Loan Works

The way a same day payday loan works is very simple.  The lender asks the borrower a few basic questions and if the borrower can answer them the lender advances the funds.

Generally, the main thing a lender will ask for a same day payday loan is if the borrower has a steady source of income such as a job or government benefit payment. Most of these lenders will schedule the loan to come due for payment on the borrower’s next payday hence the term payday loan.

Many payday lenders will want to see some paperwork that verifies this such as a pay stub or a bank statement. It is also common for lenders to call the borrower’s employer to verify employment.

Since the lender is only asking for very basic information no background checks are necessary. This makes the process much faster.

Advantages of Same Day Payday Loans

The biggest advantage to a same day payday loan is that the borrower can get the funds almost immediately. This makes a same day payday loan an excellent source of emergency funding for average people.

Many people turn to such loans because they are quick and easy to get. The amount of paperwork required is minimal and people don’t have to spend a lot of time with a lender.

Online cash lenders can operate even faster because they don’t have to meet with the borrower in person. Instead the funds are quickly sent to the borrower’s bank via electronic funds transfer.

Drawbacks to Same Day Payday Loans

The biggest drawback to a same day payday loan is the high costs associated with it. Lenders will generally charge a very high rate of interest and often tack high fees onto such a loan.

This means that a person could end up paying quite a bit of money for the convenience of instant approval. The interest on a $500 instant approval cash loan could add up to $100 which means a person will have to pay back $600.

Even though same payday loans can be taken out very quickly, a person should think long and hard before taking one out. The costs can quickly add up and eat up whatever funds a person has left.