Swift loans are very enticing. They present an opportunity to get cash as soon as you need it. In fact, there are certain circumstances that call for such quick funding. A good example will be a medical emergency, urgent home repairs or a quick need for grocery shopping.
One of the best forms of these quick credit financing options is a same day emergency loan. Just as the name suggests, this type of emergency loan is made available on the exact day that you apply. Once received, it can be spent on a wide range of emergency needs, except stated otherwise by the lender.
In this post, we show you how to get urgent cash with the broker WeLoans. You can also find all important details about how same day emergency loans work and the possible advantages of getting one.
An Overview of Same Day Emergency Loans
Despite the popularity of same day emergency loans, lots of people do not know what these loans are or how they operate. Simply put, a same day emergency loan is a kind of credit facility that is available to borrowers almost immediately after application. Same day emergency loans are short-term funding opportunities that are specifically created to cover urgent, unexpected expenses.
The aim of same-day emergency loans is to enable borrowers to get access to funds to cover critical, expedient needs. Emergency loans could either be secured or unsecured. Due to their urgency, many emergency loans may be secured, implying that borrowers have to put down a valuable item as security for the loan.
On the other hand, unsecured emergency loans mean that lenders would not usually require collateral. However, the lending company would rely on your financial history or credit score to determine if you’re eligible to receive one.
How Do Same Day Emergency Loans Work?
When borrowers apply for same day emergency loans, lenders usually disburse funds on the day that the loan application is approved. This swift funding is possible because emergency loans typically have less stringent requirements. So, borrowers have only a few conditions to meet, and once they satisfy them, they can easily get cash.
Besides, most lenders perform only a soft pull on your credit if you apply for a same-day emergency loan. A soft credit pull is a kind of check that requires only a brief inquiry into credit history. This check does not cause any adverse effect on your credit score, unlike hard checks that may harm your credit rating.
What Type of Loans Offer Same-Day Funding?
Emergency loans are usually a broader term to depict a wide range of funding opportunities that offer quick cash. In essence, if you visit a lender, chances are that you won’t find any loan option tagged as “emergency loan.” Instead, you’ll get different forms of general loans that serve emergency purposes. That said, here are some loans that David Harris from WeLoans, a financial expert writer, considered to be top examples of emergency loans that provide same-day funding options.
Auto Title Loans
Auto title loans are a common form of secured loan. These loans allow borrowers to use the documents of ownership of their vehicle as collateral for these same day funding loans. Auto title loans are particularly helpful for those with poor credit scores, as they do not require a credit check to be approved.
Payday Loans
A payday loan is designed to aid individuals with a steady income who require urgent funds before their next paycheck arrives. These credit arrangements do not require a strong credit history for you to access cash. Rather, proof of a stable income that can be used to repay the loan will suffice. It’s worth noting that the interest rates on these loans are usually high.
Pawnshop Loans
You can immediately secure funding for your emergency and urgent needs by using pawnshop loans. This type of same day funding loan involves placing down a valuable item at a pawn broker’s store. Whether a jewelry or a rare item of value, you can get a percentage of their worth as an emergency loan. However, these loans have high interest rates and your item may be sold off if you default on your loan repayment.
Credit Card Advance
If you have an extremely urgent need for funding, you can use your credit card to obtain a cash advance from a bank or ATM..The amount of cash you can withdraw is borrowed against available credit on your card. Interest rates on credit card advances are usually high and start accruing almost immediately.
Pros and Cons of Same Day Emergency Loans
Like most other categories of loans, same day emergency funding options from WeLoans come with their benefits and demerits alike. Below is a breakdown of the pros and cons of choosing emergency loans.
Pros
Here are the major perks of opting for same day funding emergency loans.
Quick Approval and Funding
The very first advantage of emergency same day loans that comes to mind is that their lenders offer swift approval and funding. You can typically get approved for the loan within minutes and have the cash deposited in your account before the end of the day.
Comprehensive Use
There are very few limits to what emergency situations you can spend your loan amount on. From urgent grocery shopping to auto vehicle repairs and medical bills, you can use your loan to cover any type of need.
Easy Requirements
Not only is the approval fast, but with same day emergency loans, the requirements are very easy to meet. Whether your emergency loan is secured or unsecured, you’ll only need to fulfill a short list of criteria and undergo a soft credit check to get funding.
Cons
On the flip side, same day emergency loans have several demerits you should be aware of.
Higher Interest Rates
The quick funding comes at a cost, and, sometimes, it could be high. Same day emergency loan types attract very high interest rates and fees compared to most loan options. For instance, payday loans and credit card advances have three-figure annual percentage rates.
Short Repayment Terms
In addition to the expensive nature of these loans, they also usually have a short repayment window. That’s because same day emergency loans are designed as a short-term funding option. So, you need to repay on time to avoid more fees that accrue when you default.
Concluding Remarks on Same Day Emergency Loans
Same day emergency loans are generally one of the best options for quick funding. If your financial need is so urgent and can’t wait till the next day, then applying for one might be the wisest step to take.
However, it’s always best to consider the high annual percentage rates that come with this type of loan. Shopping for emergency loan offers at WeLoans can help you preview different loan terms and choose the least expensive option.
