Unfortunately, life can throw expensive surprises at us at the least convenient times. If you are fortunate and have planned ahead, you can draw upon whatever funds you have stored for an emergency.
The reality is, however, that few people have the luxury of choosing when to have a financial crisis. This is where a same day payday loan come in handy. A payday loan describes where one enters into an arrangement with any financial services provider for a cash advance, based upon a quick means test of your ability to repay the loan.
Lenders will typically require a signed declaration that includes what your weekly income, and the particulars of your employer. You’ll also need to provide your own personal details, and possibly those of a friend or someone who knows you.
You do not need to worry about a payday loan rejection due to your credit rating: Most lenders will not check your credit unless you default on a payday loan. One possible obstacle is that some lenders will only make an immediate deposit into an existing bank account, rather than actually handing you cash in hand, which could require up to three days to clear, depending on your bank.
A same day payday loan offered with instant approval will typically limit you to a fairly low maximum loan (usually between US$500 and $1500) and will attract a higher rate of interest than, for instance, overdraft, monthly credit card interest, or the rate offered by a pawnbroker.
The service offered by payday loan vendors is, in fact, quite similar to that offered by banks with credit and overdraft facilities: Both are based on an assessment of your ability to repay the loan with proven regular income.
Since banks usually require a lower interest repayment and have a greater borrowing limit, one might consider taking this option if the cash wasn’t required immediately. If, however, you can’t afford to wait the few days it takes to be assessed, you have a poor credit rating, or your bank statements do not show proof of regular income, the convenience, and availability of the offering from advance cash lenders will probably swing this option into favor for your particular needs.
There are a few things you can do to increase your chances of instant approval for a payday loan, after considering the arrangement from the lender’s point of view. If you’re filling out an online application, provide all that is necessary to convince the person assessing your loan application that you’re a safe risk That means providing more than the minimum amount of necessary information where you can.
If anything you provide an assessor with is questionable or difficult to verify, they’ll be able to fall back on additional information you’ve provided them with, like references and employer details. If you’re applying in person, take some care with your presentation.
Do your best to use neat handwriting, and if you go into the lender’s office in person, dress well. They are much more comfortable lending money to a well-spoken, well-dressed individual than someone with a bad attitude or who looks like they will have trouble paying back the short term loan.
A same day payday loan is an expedient way of getting an emergency loan. Regardless of your credit rating, the only thing you need to do to secure a cash advance in the short term provides ample proof that you are employed and that you have the income necessary to repay the loan within the agreed terms.
While payday loans attract high interest compared to other methods of lending, they are also the quickest and most accessible way for most people to secure a loan on such short notice, short of leaving collateral at a pawnbroker.