Same Day Loans – The Pros and Cons to Consider before Making Your final Decision

Same day loans can help you solve temporary financial problems – if a sky-high bill is due tomorrow or your car has broken down and you are counting the days until your next paycheck arrives, these fast cash loans may be exactly the solution you are looking for.

The sums you can borrow with these loans are relatively small, usually ranging between a few hundred dollars and one thousand (though some lenders offer more substantial loans as well), but these amounts are usually enough to cover the emergency that is stressing you out. However, just like any other type of loans, same day loans have pros and cons as well and there are several aspects you must take into consideration before if you want to make the most of your loan and to prevent getting into debt that you will find difficult to repay.

The Pros

Fast and easy availability is certainly one of the aspects that make many people choose this type of loan over other types that are more difficult to qualify for. With these loans, the application is easy and quick. The lender does not require the applicant to have good credit score and they will not perform a credit check either, saving considerable amounts of time for the applicant by shortening approval time Once your application is approved, the money is almost instantly transferred into the your checking account.

Another feature that makes same day loans so popular is that credit checking is not the only obstacle that has been eliminated from the process. These quick loans are available without collateral, in other words, you are not required to offer your home or your vehicle as a guarantee of the repayment.

The Cons

Same day loans have been invented to cover emergency expenses and not to finance holidays or to buy a car. One of the limitations that come from the very nature of these loans is the amount of money they make available: they usually offer the applicants easy access to amounts up to $1,500, which is probably enough to pay for emergency repairs or unexpected bills, but not enough for larger investments.

The other aspect you must take into consideration is the cost of your loan. As the lenders of these loans require no proof of credit-worthiness, they undertake very high risks, which they are trying to cover for by charging higher fees. Beside the debt, you will be required to pay other fees and high interest rates, so the sum you will have to pay back at the end of the loan can be pretty high – sometimes even as high as 20%-30% percent over the amount you requested.

Same day loans can be a good temporary solution for your problems, but only if you are sure you will be able to pay it back by or before term – make sure you evaluate all the pros and cons and make your choice only afterwards.