A same-day cash loan is a payday loan which is made available on the same day without a thorough checking of the borrower’s creditworthiness, his motives or his personal life. Consequently, these loans are available in small amounts, usually from $50 – $1,000 and it is generally encouraged to issue them in case of dire emergency. The loan is due back by a borrower’s next payday, or within 30 days. Some loans like installment ones may carry a slightly longer term.
The price paid for such speed and convenience comes in the form of high interest and fees. This usually equates to $15 – $25 for every $100 borrowed, which is the same as a 400% APR.
Any consumer, par the minimum age of 18 years, who is a resident of the state where the lender or lending company has licensed, who has a valid, active checking account capable of electric transfers, has a job or any other recurring source of income and can provide a proof of it is eligible to apply for a same day loan. There is no credit score requirement, so people with bad credit may apply for quick loans as well qualifies for immediate loans.
One may need the same day loan when he is low on savings and sudden expenses arise. For example, if someone’s car, through which he commutes daily to office breaks or his loved one gets seriously ill needing immediate hospital admission. Such expenses are unexpected and may be too big to prepare for, but they surely cannot be avoided and need to be taken care of as soon as possible. Moreover, recent statistics tell that fewer than half of Americans have more than $1,000 in savings to cover emergencies. Therefore, same day loans are good for a one-time emergency, like auto repairs, doctor’s appointments, moving expenses, and so on. It is discouraged to over-rely on same day loans for paying recurrent expenses such as house rent, as they have lethal interest rate and may quickly submerge an over-user in debt.