When it comes to finding loans, we can all admit that it is not exactly the easiest thing to accomplish. There are a whole lot of moving parts happening at once, and keeping track of them is a challenge. Not to mention, we also have to choose our lender – and get approved for one in the first place.
So, when there is a chance to speed along the process, it is pretty hard to deny that it would be helpful. If you did not already know, there actually is a way that you can get an answer to your application within twenty-four hours of submitting it. They are known as a same-day loan, although do keep that timeframe of twenty-four hours in mind.
If that sounds like something appealing to you. then do make sure to stick around. We will be covering most of the specifics for the type of loan, including some examples of where you can find them. To get a bit of background information, you may want to check out this resource: https://archive.nyu.edu/bitstream/2451/2-008. From there, though, keep reading!
Loans: What are They?
It is safe to say that most of us out there already have a pretty good idea of what loans are. That being said, though, there is always more to learn! So, today, let us take a look at some of the terms that you will need to know throughout the lifespan of a credit agreement.
Credit Agreements vs. Loans – is there a Difference?
Chances are, you have probably heard of each of these phrases before. However, the tricky thing is that a lot of folks think they are completely interchangeable. In fact, which is not quite true.
Rather, a loan is a type of credit agreement. So, while that can be used interchangeably when referring to a loan, the opposite is not true. Credit cards are another type of agreement, after all. Just bear that in mind.
Interest Rates – How Important are They?
Next on the docket, let us consider interest rates. Likely, they have already come up at some point or another throughout your adult life. As much as we would like them not to be so important, they are a pretty big deal.
For anyone not entirely familiar with this, the interest that we pay on a loan is the fee that we are being charged for borrowing the money in the first place. Financial institutions utilize it as their primary source of income. As consumers, our goal is generally to find the lowest rate that we possibly can.
Obviously, the fact that we often end up paying a lot more back on our loans than the principal amount means that interest rates are something that we should be paying attention to. When negotiating a loan, always be certain to check on the interest you are being charged. If it is too high, you can always try to negotiate or look elsewhere.
Credit Scores: Do they Really Matter so Much?
Ah, the dreaded credit score – it is a phrase that can inspire a shudder down one’s spine depending on your experiences with them. Unfortunately, they really are just as important as you may have heard. Most financial institutions and lenders will check out your credit score to determine how risky you are as a borrower.
Now, this is not always going to be important. Certain types of loans will not necessarily require you to have a super high score (though, those cases are usually for student ones or those that are from a credit union that you belong to). Either way, it is better to be prepared with this information than to not have it.
What Does the “Same Day” Process Look Like?
Now that we have covered some of those basics, it is time to turn our attention to something a bit more interesting – the prospect of these same-day loans. Do they really work as promised? Is there some sort of catch involved?
Well, for the most part, they are what they are advertised as. Outside of some extenuating circumstances, you will get a response on your application within twenty-four hours. Just remember that it does not mean you will receive any funds within that period. There is a big difference.
How it Works
If you are still wondering how all of this works, do not worry. There are a ton of resources out there like this website that can help to explain it. Additionally, you will likely find that the applications are not all that different from “normal” loans. The only huge difference is the wait time for an answer.
So – you will still have to fill out a fair bit of paperwork. Depending on your lender, which can be done in a few different ways. Some will offer an online format or even a text format, so that can make things a bit more convenient. Either way, though, you will need to provide some personal information.
This will likely include identifying documents as well as your credit score and some financial history. Proof of employment and/or income can come in handy as well. If you are uncertain about what to grab, it is best to ere on the side of caution.
Once your application is submitted, you will have a day-long wait period. Although this can be a bit stressful, at least it is much more timely than other types of loans. That is the draw here, of course.
As far as whether or not there are any caveats here, there are a few. The biggest one is that although anyone can apply for these sorts of credit agreements, there are stricter eligibility requirements set in place. Largely, that means that applicants are expected to have a solid credit history.
After all, as we mentioned earlier, they are looking for applicants who can demonstrate that they are trustworthy rather than risky. The riskier that you are to lenders, the less likely that you are to be approved. Unfortunately, even when you do get approved, there’s a good chance that you’ll end up with some high-interest rates.
Are These Loans Worth it?
Our final question that we will tackle today is this one – is it worthwhile to pursue a same-day loan? A lot of folks have to wonder what all the fuss is about, especially since we hardly ever see coverage about them outside of specific circles. With that said, it is hard to deny the appeal behind them.
Twenty-four hours sounds a whole lot better than twenty-four days, right? Obviously, that is just a generalization, but a ton of lenders will make you wait quite a while for a response if you are not going to aim for these sorts of loans. Certainly, it is something to keep in mind as you shop around for lenders.
Although a large part of the borrowing process does involve patience, it is better to know on the day (or within twenty-four hours). That way, you can plan appropriately and know whether you need to apply to other lenders or not. Additionally, this can push the waiting period to when you get your funds, which is a lot less anxiety-inducing.
Generally speaking, it is probably worth at least trying to go for this style of loan. Even if you are not approved, the impact on your credit score overall will be minimal. So, you can always opt to apply elsewhere and hope for better luck. At the very least, you will have somewhat better peace of mind if you go this route.
As always, though, remember not to borrow money out of your means. Always be mindful of your budget, both on a monthly and an annual basis. If you are not certain that you can pay all of your bills and cannot handle another one being added to the pile, it may be best to steer clear for now – until you reach a more stable situation. Otherwise, though, there are a few reasons not to go through with this sort of process, so best of luck!