Same-day payday loans fill a need that banks and other traditional lenders don’t. They claim to approve instant payday loans the same day for people with low credit scores. In this guide, we share our insights on these loans, whether they are beneficial, and other alternatives for you.
What Are Same-Day Payday Loans?
Anyone would normally need large amounts of cash ($100-5000) urgently for situations such as paying a medical bill, car repairs, job loss, dental work, or a death in the family. Not everyone has access to emergency funds. In these situations, payday loans can come as a rescue option for people.
Payday loan companies usually approve them very quickly and make them accessible to people with lower credit scores. This means you can get the money when you need it most.
Pros and Cons of Same-Day Payday Loans
Just like anything that comes easily, these emergency payday loans on the same day also have significant downsides when people borrow ignorantly. This is due to their soaring interest rates and shorter repayment periods.
In a way, same-day payday loans might attempt to take advantage of you by charging enormous costs for borrowing the loan. It’s also understandable that someone would only take out a loan if they didn’t already have that kind of money.
Therefore, it’s explicable that they wouldn’t be able to get the money in as little as 2 weeks. This pushes them into cycles of debt—taking another payday loan to pay off the previous one, which only adds more interest.
However, there are reputed lenders online who offer safer loan options. These are the ones you should choose, since they offer loan amounts only up to $5000 and longer repayment times (2 months to 6 years).
Benefits of Same-Day Loans Online
Here are a few plus points of fast payday loans when you take them from trustworthy lenders.
- Quicker approvals; credits will be transferred to your bank account within a day.
- Paperwork is minimal.
- No collateral is required to get same-day payday loans.
- Most lenders don’t perform credit checks as long as you have a stable income.
- You can apply online, from the comfort of your home.
How Can I Apply for Quick Payday Loans?
Applying for quick payday loans is easy. We have mentioned the step-by-step process to get these instant payday loans on the same day.
- Research and find reliable lenders.
- Apply for the loan online.
- Understand the repayment terms.
- Submit verification documents.
- Sign the hard copy that contains loan terms.
- Receive your funds.
MyPayDayLoansOnline, for example, is a trusted online lender among US citizens. Our loan amounts range from $100 to $5000. Total interest rates, or APR (annual percentage rate), range from 5.99 to 35.99 percent. You can repay this in 2 months to 6 years of time.
Let us look at some examples of payday loans so you can understand the costs:
$1000 Payday Loan
If you take a 1000 dollar loan for 2 months from a lender charging you 20.99% APR, here’s what you’ll end up paying in total:
| Principal | $1000 |
| Loan Tenure | 2 Months |
| APR (interest rate + origination fees) | 20.99% |
| Interest to Pay | $209.90 |
| Monthly Repayment Amount | $604.95 |
| Total to Pay | $1209.90 |
$3000 Payday Loan
Now, in this example, let’s consider you want to take a loan of 3000 dollars for 3 months, and the lender is offering it at an annual percentage rate of 14.49 percent; here’s what you’ll end up paying:
| Principal | $3000 |
| Loan Tenure | 3 Months |
| APR (interest rate + origination fees) | 14.49% |
| Interest to Pay | $434.70 |
| Monthly Repayment Amount | $1144.90 |
| Total to Pay | $3,434.70 |
$5000 Payday Loan
Likewise, a 5000 dollar loan scheduled for repayment after 12 months at an APR of 5.99% will cost you:
| Principal | $5000 |
| Loan Tenure | 12 Months |
| APR (interest rate + origination fees) | 5.99% |
| Interest to Pay | $299.50 |
| Monthly Repayment Amount | $441.63 |
| Total to Pay | $5,299.50 |
Even you can calculate the loan terms by selecting your loan amount, its tenure, and APR easily.
Am I Eligible to Apply?
Since collateral and credit score checks are absent in same-day payday loans, there are other requirements that you must meet.
- You must be above 18 years of age.
- Recent pay stubs or bank statements for proof of a stable income.
- An active checking/savings account.
- Proof of U.S. residency through lease agreements or utility bills.
- A government-issued ID (driver’s license or passport).
- Active phone number and email address.
Therefore, exploring genuine lenders who offer lower interest rates, like MyPayDayLoansOnline, surely make the process a soothing experience for you.
