Sometimes, you have to deal with an expense that can’t wait. Maybe you need to make urgent repairs to your house or car, or pay for an unexpected trip. Whatever the reason for your tight financial situation, it can be challenging to raise funds. Thus, applying for a same day loan has always been a convenient solution for those who are experiencing a temporary shortage of money. Although this type of loan offers a plethora of benefits, it’s still not perfect.
Before deciding to apply for one, here’s what you need to know about same day loans and the pros and cons you must consider from the very beginning:
Same Day Loans Explained
With a variety of loan types in the market these days, one of the most popular is the same day loan. This small amount loan has become popular among people, particularly for Australians who are dealing with emergency expenses and need urgent money. It also intends to provide a fast and accessible means of instant cash to help individuals bridge the temporary monetary gaps they are facing.
With loans of up to $2,000 AUD, you can directly submit your application online, get approved on the same day, and receive your cash straight to your bank account. To get started, get ready with your personal details, including your mobile number and email address, your bank details, and proof of your regular income. Once you meet these requirements, the lender will begin processing your application.
If you need extra cash urgently, there are reliable short-term money lenders like CashnGo that can help you smooth over your life’s rough patches.
Pros and Cons of Same Day Loans
Again, same day loans are designed to help people cover those instances when they’re short on cash. Although the benefits usually prevail over the limitations associated with same day loans, it’s always essential to understand and weigh the pros and cons first before engaging in this kind of credit. Below are the typical advantages and disadvantages of same day loans:
By applying for the same day loan, you can get the most out of a range of options for repayments. It gives you every opportunity to repay what you borrowed by providing loan agreements that are suitable for your needs. In other words, you have the authority to set up your payment schedule yourself before confirming your loan. For example, if you opt for a 3-month loan or a 6-month loan, the final decision is yours.
2. Quick funds on the go
If you think about making extra money in an instant, applying for a same day loan is what you need. It’s ultimately fast and reliable, especially if you need to make a quick payment on something. Another most significant advantage of same day loans is that it can be processed without having to wait for days or weeks before it’ll be approved. On the same day of your application, you can get your money straight to your bank account once it’s accepted.
3. Available even with a bad credit
Most lenders in the industry understand the importance of having a good credit history when applying for a loan. For example, banks will check your credit report, and if you have a bad one, they will deny your loan application. However, same day loans don’t only rely on your credit history. As long as you have a regular source of income, then you can qualify for the same day loan.
4. No need for any collateral
Another factor that makes same day loans beneficial is that no borrower’s pledge is necessary before you can apply. Given its accessibility and convenience, borrowers like you don’t need to make your property as collateral in case you default on your payments.
1. Strict terms and conditions
Due to the fast and easy-to-access nature of same day loans, terms and conditions set forth by the lenders are uptight. In such a case, you need to perform close monitoring to ensure prompt payment of your debts and avoid having a bad credit score.
2. Higher fees
Since same day loans provide quick cash for those who need it, one of its downsides is that lending companies are more likely to charge higher fees.
3. Higher interest rates
Another letdown of same day loans is the higher interest rates. As you can get your money fast, paying for it in a higher value is seen to be its primary consequence.
Although loans have become a good source of emergency funds when there’s a shortage, it’s crucial for every borrower, especially for Australians, to be careful in applying for the same day loan. Before clicking the application button online, be diligently responsible for determining whether it’s the right financial solution for you. Choose the right same day loan company, comply with all the requirements, and check the terms and conditions first to avoid being in serious legal trouble later on.