Sometimes even the most carefully planned budget can’t foresee financial emergencies that leave you in need for immediate funds. If you find yourself in this situation, you are probably looking for a guaranteed same day loan, also commonly called a payday loan.

What is a Same Day Loan?

Same day loans are available through two basic groups of lenders: individual payday loan companies and banking institutions. Consumers apply for an emergency loan amount, typically $250 – $1000+, and agree to repay the loan with interest. This repayment usually is scheduled to occur within two to four weeks after the funds are dispersed.

Often times there are minimal or no credit checks conducted to qualify for this type of financing. Consumers provide either a post-dated check for the loan amount plus interest and fees, or they provide electronic access to their banking account with the agreement that the fees in full will be available on the designated date.

Payday loan offices have come under close scrutiny in the past few years, and only about 75% of the states in America allow these agencies to operate legally. The scrutiny comes as a result of the high interest rates and associated fees that are charged to consumers. These annual percentage rate can be in the triple digits in many situations. Banking institutions that offer same day loans operate in similar ways to payday loan companies, but they actually don’t have to adhere to all of the rules and laws established for payday loan agencies.

How Do I Get a Same Day Loan?

If you are in a financial emergency and need to get cash today, shop around for the best lender before you post-date that check. Payday lenders have businesses in most communities, but they are also accessible online. Just be certain that you do your research and make sure that the lender is an established business with a good track record.

Some consumers find that same day loans from their own personal banking institutions are better options for emergency finance situations. The interest rates are sometimes lower, and the fees are generally fixed at lower amounts. Going through an actual bank may have more strict credit requirements, but if you already have an established financial history with the bank it may help you qualify.

You must complete an application that generally includes your basic personal information (name, address, phone number, and social security number), as well as your employment information. Most same day lenders look to employment history rather than run credit checks. If they see that you are receiving regular paychecks, they accept that as an indication that you will be able to pay them back on your next payday.

What Are the Risks of a Same Day Loan?

If you are in a financial emergency, you might feel that a same day loan is the only option for you. However, before you commit to the extremely high interest rates and fees that are associated with these loans, consider other options that may be available. Credit cards actually tend to have lower fees than same day loans, even for cash advances. If a credit card isn’t an option, perhaps borrowing from family or friends would be a possibility if it is a true financial emergency. Even though this can strain relationships, if you are 100% certain that you will be able to pay back the loan in full on payday, you will likely be able to borrow money this way without the steep interest rates that can contribute to even further financial problems. If in the end you do decide to apply for and accept a same day loan, make sure that you have shopped around for the best interest rates, the lowest fees, and the most reputable lending institution.

Moe Bedard
My name is Maurice "Moe" Bedard. I am the founder of America's #1 Mortgage Forum, LoanSafe.org. My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications.