Obtaining a loan from a traditional financial institution, such as a bank or a credit union, is rather simple: you apply for the loan, the lender reviews your application, and, if you qualify, approves the loan.
However, things aren’t as simple when your credit score isn’t as spotless as you’d like and when you’re in a financial emergency. Not only do banks and credit unions determine your eligibility for a loan based on your credit, but they’re also notoriously slow when it comes to processing loan applications and approving the loan.
Fortunately, we’re offering a solution: we assist with finding same-day emergency loans for bad credit so that you don’t waste time searching for loans and lenders when facing a financial emergency. All you have to do is fill in this online form.
In this guide, we’ll discuss same-day emergency loans, what they are, how and where to obtain them, and some of the most common benefits and drawbacks of these types of loans.
What Is a Same-Day Emergency Loan?
Same-day emergency loans are personal loans that the lenders grant and fund on the same day after you’ve filled out a loan application. These unsecured loans are specifically designed for fast funding so that they may be used to cover various unexpected expenses and financial emergencies.
As personal loans, same-day emergency loans usually have terms that range between one and five years, depending on the loan amount you borrowed, though some loans can be extended up to seven years.
The loan amount usually ranges from$200 to $1,000 for cash advance and payday loans, and $1,000 to $100,000 for long-term loans, with interest rates for the latter ranging from 7% to 36%. These numbers are lender-specific; this includes the maximum loan amount, as well as interest rates, although many states impose caps on the latter, limiting them to 36% interest.
They also come with varying loan repayment terms, depending on the amount borrowed. Smaller amounts can be treated similarly to short-term payday loans, while substantial amounts imply treating the loan as an installment loan, in which you borrow a lump sum and repay the loan in recurring monthly payments.
What makes these loans appealing to borrowers, apart from their fast funding time, is that they’re also available to borrowers with bad credit scores. Applying for an emergency loan with traditional lenders usually involves a credit check, which limits the accessibility of these loans to those with poor credit.
If your credit report isn’t as spotless as you’d like it to be, the bank will likely perceive you as a high-risk borrower (a borrower who is more likely to default on their loan), and is more likely to deny your application.
Online lenders, and some traditional lenders as well, offer same-day emergency loans for borrowers with bad credit. These loans have considerably lower minimum credit score requirements, but you’re likely to be offered higher interest rates and less favorable loan terms.
Many online lenders market these loans as no-credit-check loans to attract customers, but the truth is that most lenders perform credit checks not to establish eligibility but to determine appropriate interest rates and loan terms that reflect the state of your credit. Naturally, those with good credit receive lower interest rates and more favorable loan terms.
How to Get Same-Day Emergency Loans With Bad Credit
While approaching your bank or credit union seems like the most reasonable idea, these institutions are more likely to perform lengthy hard credit checks that not only take time but may also dent your credit score.
Undergoing lengthy checks only to potentially learn that your loan request has been denied definitely isn’t ideal when you’re facing a financial emergency. Thus, online lenders might be your best emergency loan option if you’re looking for a loan with bad credit.
Online lenders that provide bad credit loans also look through your credit history, but unlike hard credit checks, these inquiries are much less time-consuming and don’t affect your credit. Here’s how to obtain a same-day emergency loan with bad credit:
Do Your Research
Before applying for a same-day emergency loan, you should learn what your credit score is and dedicate some time to searching and finding a reputable lender. The former will give you an idea of what to expect in terms of interest, and some online lenders might outright ask you what your credit score is; knowing this information can significantly streamline the application process.
Additionally, you want to find a reputable loan lender that offers financial assistance at reasonable rates and loan terms. It pays to check online reviews and ask around with your friends and family. The downside of this approach is that it takes time since you have to find and compare different lenders before even applying for a loan.
Assuming that you’re looking to increase your chances of securing the loan, you’re likely to apply with multiple different lenders, which only takes more time. Fortunately, we offer a solution to that particular problem, which we’ll mention in the later section of this guide.
Gather the Necessary Paperwork
While same-day emergency loans don’t have any strict eligibility requirements in terms of credit score, lenders do require that you submit certain paperwork and documents that are necessary for you to obtain the loan. These documents include:
- Identification: Lenders must be able to confirm your identity, age, and whether you’re legally able to enter a contractual agreement. Any government-issued document that can be used for identification, such as a personal ID, driver’s license, or passport, should serve this purpose.
- Bank account information: Lenders need your bank account info to deposit the loan funds, minus the origination fees, once your loan has been approved. Unlike short-term loans, most lenders won’t require direct debit authorization, though you can set up automatic payments with your bank.
- Proof of income: Lenders require that you submit proof of income using pay stubs, bank statements, or pension documents, demonstrating your ability to repay the loan. The number of loan products and lenders that don’t require this document is very limited.
- Personal information: You also have to submit your personal information, such as date of birth, social security number, and address; the latter can be proven using any document with a clearly listed address that has been addressed to your name.
Please note that some same-day emergency loan alternatives, such as car title loans, require that you also submit loan-specific details and documents, including the title to your vehicles, pictures, and year, make, and model.
Fill Out An Application
After you researched the lenders and gathered all the necessary documents, you need to fill out the application form. However, as previously mentioned, applying with multiple lenders to secure a loan is time-consuming. Why fill out several applications with different lenders when you can fill out only one?
Simply head over to our website and fill in an inquiry form along with all the required documents, which we previously listed. Upon submission, we’ll share your online application with our vast network of lender associates, who will review your application and make a decision on whether or not to fund your loan.
It’s like applying with several different lenders at once by filling out a single same-day funding loan application. After our associate lenders review your application, they’ll contact you regarding their loan offer. If you find the offer appealing, the lender will provide you with a loan agreement, which details the loan amount, interest rates, and all the other associated fees.
Get Your Funds
Once you sign the agreement or agree to a same-day emergency loan, the lender will load the fund into your bank account on the same day. However, it’s worth mentioning that working hours, weekends, and holidays apply, and if you apply anywhere near those, delays in funding might occur—in which case the funds will be loaded on the next business day.
Most lenders don’t impose any limits on how you use your loan. Most people take same-day emergency loans to address urgent matters, such as car repairs, medical bills, debt consolidation, home repairs and home improvement, and other emergencies.
Same-Day Emergency Loans For Bad Credit Pros and Cons
It’s always a good idea to weigh the pros and cons of same-day emergency loans or any other loan product in general. Here are some of the biggest advantages and drawbacks associated with same-day emergency loans.
Advantages
Besides providing you access to fast cash, same-day emergency loans offer numerous other advantages:
- Convenience: Not only are they funded with speed, but same-day emergency loans are incredibly convenient thanks to their online application process that allows you to apply from the convenience and comfort of your home using your personal electronics device.
- No-risk estimates: Most lenders offer pre-qualifying, allowing you to find out whether you’re eligible for a same-day emergency loan or not. In most cases, this involves a soft credit check with the Credit Bureau that won’t adversely affect your credit report. Additionally, you can always back out during the estimation and pre-approval process.
- Forget bad credit: A low credit score isn’t a limiting factor when it comes to same-day emergency loans. It would be best if you had at least fair credit to secure better interest, but your application won’t be denied if your credit isn’t impeccable.
- Improved credit score: Most lenders will report your repayment to the Credit Bureau, so making on-time loan payments could potentially improve your credit score. That way, the next time you borrow money from a financial institution, you may be able to negotiate better loan conditions thanks to this.
Drawbacks
Despite their benefits, same-day emergency loans also have their drawbacks, most of which are listed below:
- Higher total costs: Same-day emergency loans are typically more expensive than those obtained from traditional financial institutions on good credit. Those obtaining a loan with bad credit can expect high interest rates and less favorable terms.
- Eligibility requirements: Even though they’re advertised to customers with low credit, same-day emergency loans tend to have higher approval standards. While credit score requirements aren’t as stringent, lenders also determine your eligibility using your debt-to-income ratio, as well as several other factors.
- Additional fees: Some lenders impose prepayment penalties, origination fees, or other fees.
Frequently Asked Questions
Here are the answers to some of the most commonly asked questions associated with same-day emergency loans:
Thanks to the advent of the internet, most lenders offer their services online, and finding a lender is only a web search away. However, the most time-efficient way to find a same-day emergency loan is to submit the application on our website. We’ll share your application with our associate lenders, increasing your chances of securing the loan.
Desperate times call for desperate measures, and that also applies to financial emergencies. With that said, some financial products are better than others, and it’s best to avoid financial products that carry high annual percentage rates and high interest rates.
Payday loans are a good example of a loan best avoided; they carry exorbitant APRs (up to 400% or higher), and unfavorable loan terms. They’re often considered predatory loans; failing to repay these loans on time can put the borrower in a perpetual cycle of borrowing to repay the debt.
There are several viable alternatives to same-day emergency loans. Some of these can be obtained from traditional lenders, such as credit card cash advances and lines of credit, while others can be obtained from online lenders, such as title loans or online installment loans.
Only if you fail to repay the loan. In most cases, the lender will first charge you with late fees and penalties for missing payments, which will adversely affect your credit. Once you default on your loan, the lender will report your default to the Credit Bureau, negatively impacting your credit.
Summary
Source: PexelsSame-day emergency loans are a viable financial solution to your unexpected expenses and financial emergencies. If you’re interested in securing a same-day emergency loan, you can apply for one at US Cash Advance, and we’ll do our best to meet your needs.
