Many of us often find ourselves in instances when we are stuck in a dire unforeseen financial situation where the money is tight and unavailable, but we still need it straight away. This could be during an unexpected medical emergency, if your car needs to be repaired or if you have lost your job. Thankfully, there is help available during such situations.
Whatever your urgent cash needs might be, if you have good credit, there may be some lenders who could help you. These lenders offer emergency loans that transfer the funds to you as quickly as the same day you apply.
If you have been tempted by same-day loans, there are a few things you should know about it before signing on the dotted line. This guide will provide you with all the facts about these quick loans, how they can help solve your immediate financial needs, and when to consider applying for a same-day loan.
What Are Same-Day Loans?
Same-day loans, also known as Emergency Loans, are a type of unsecured Personal Loan that you can receive immediately to cover unexpected expenses. The amount of loan depends on the lender, but typically this type of loan is small starting from $500. Since they are unsecured, you will also not have to put up any assets as collateral.
For the most part, the nature and requirements of same-day loans are typically dependent on the lenders. Some even take up to three business days before your funds are transferred to you. Thus it would be better to review each lender thoroughly before applying for a same-day loan with a particular lender.
An important thing to note about same-day loans is that they are not available to everyone. Only individuals who have a steady source of income and have at least an average credit score are more likely to get approved for an urgent loan. Lenders review your bank statements, payment history, and other financial details before deciding whether to approve your request for an Emergency Loan.
When Should I Apply for Same-Day Loans?
Most people apply for same-day loans only when they need immediate access to their urgent cash needs. However, you can use the funds for almost anything. Here are some of the instances when you should consider a same-day loan:
- Medical emergency or unexpected procedures
- Funeral costs for a family member or loved one
- House or car repairs
- Unexpected travel
- Replace broken appliances
- Vet bills and associated expenses
Benefits of Same-Day Loans
Same-day loans are a helpful backup plan when you feel like you are financially cornered and have no way of bearing expenses. Here are some of the main benefits of applying for Emergency Loans:
- Ability to use the loan for almost any reason
- Flexible repayment terms
- Quick and easy applications which are typically done online in a matter of minutes
- Short approval times with fast transfers – You won’t have to wait for days to receive funds
- Apply from anywhere – No hassle of visiting banks and credit lines and standing in long lines
- Type of unsecured loan – You don’t risk your house or any other asset if you are unable to make payments
Risks of Same-Day Loans
It is important to note that same-day loans come with some risks that you should consider before applying for them. Because of these risks, it is recommended only to use these loans when you need funds. These risks are that these loans:
- Often carry high APR (Annual Percentage Rate of Interest) and also have additional fees and costs when lenders provide same-day loans
- Have the risk of damaging your credit score if you don’t repay the loan on time
How to Choose A Same Day Loan
Now that you know about all the benefits and risks with Emergency Loans and are considering applying for one, there are some factors you should take into notice when choosing a lender for your same-day loan.
1. Funding time
This is one of the most important factors to consider when shopping for a lender for your same-day loan. The point of such a loan is to receive funds immediately or within a day or two; hence you should find out how long the lender will take to transfer the cash to you.
2. Interest Rate
As mentioned earlier, same-day loans can carry high-interest charges. Although those with high credit scores may not be charged a higher rate, those with poor scores might not get a favorable rate. Compare lenders and their interest rates to see who is offering you the lowest rates.
3. Repayment Terms
Another factor you need to take into consideration is the terms offered by the lenders regarding repayment. Do you want to make larger monthly payments for fewer months or smaller weekly payments for a longer time? Depending on your budget and financial situation, you should seek out and decide repayment terms based on what is easier for you.
4. Fees
Take a look at all the fees charged by the lender, including establishment fees and any penalties, such as late fees.
5. Credit Score Requirements
Most private lenders often have a minimum amount of credit score required to be approved for an Emergency Loan. If possible, research what this requirement is and find out your credit score online before applying for a loan.
What Information is Required to Apply for a Same-Day Loan?
Here are the following documents and information some lenders require you to provide if you are applying for instant short-term loans same day in Australia:
- Your identification documents, such as in the form of a passport, driver’s license, or Medicare number
- Your residential details, including where you currently live
- Proof of employment by giving copies of your previous payslips and most recent bank statements
- Other financial details such as if you have any other existing loans or other sources of income
- Provide details of a referee or family member to the lender in case they cannot get in contact with you
What are the Typical Eligibility Criteria for a Same-Day Loan?
The criteria for a same-day loan vary according to lenders as they may have different requirements. However, some of the most common requirements for same-day loans include:
- Be 18 years or older
- Be currently employed or have some source of reliable income
- Be an Australian citizen or permanent resident
The Bottom Line
Same-day loans and Emergency Loans can be a lifesaver for anyone facing an unexpected expense and has urgent cash needs. You can borrow the money on the same day you apply to cover the costs you require help with. Be sure to find out if there are any hidden costs and find a lender that is transparent about fees and repayment terms.
If you are looking for a flexible same-day loan, you can find more information about Cashify’s Emergency Loans. It is quick, simple, and straightforward. If you have any questions or require more assistance, you can reach out to the friendly team at Cashify, and they will be sure to help you out with whatever you need.
Disclaimer: Please note this content is of general nature only and does not take into account your personal objectives, financial situations or needs. For advice tailored to your financial situation, it is advised that you seek guidance from an accountant or financial advisor. The information contained in this article is correct at the date of publication.
