Break in Case of Emergency: Advantages and Disadvantages of Same Day Loans

Break in Case of Emergency: Advantages and Disadvantages of Same Day Loans

Loan

What’s a person to do? You can’t get to work without your car, but you need $350 to replace the water pump. You’re between paydays, but you have an unexpected $200 bill for your daughter’s emergency clinic care. You’ve paid your bills, but don’t have rent for this month. What is a person to do?

You can seek a personal loan from family or friends, but that’s awkward. You can check with your bank or credit union, but they are not in the business of underwriting small loans. And, you can use high interest credit cards if you have them. But, you have probably rethought those options.

The Wall Street Journal reports, “More U.S. employers are teaming up with financial institutions such as credit unions to offer small personal loans to their workers, offering employees a way to bridge financial crunches without turning to high-cost payday loans.” But, if your employer has not stepped up to offer this perk, you are still in a bind.

Many people turn to Same Day Loans, a rescue in case of emergency!

Advantages of same day loans

  • Easy application process. You complete an easy online application and send it with a bank statement that demonstrates regular income. No credit check is required.
  • Easy approval: Once approve, you receive an agreement and service agreement by email for your approval
  • Easy money. Depending on your bank’s procedures, the money will deposit in your account within hours. (Loans approved after 5pm EST receive funds the next morning.)

Disadvantages of same day loans

Norbert Michel, a contributor to Forbes, wrote, “Individuals should be left free to assess their own needs, circumstances and values—and make their own decisions accordingly.”

  • High interest. Same day loans may have higher interest rates than traditional banks and credit unions. But, some providers only charge flat fees for service.
  • High additional fees. Some agreements hit you with additional fees and charges when you are late with payments on cannot repay on time. So, you should only take out a same day loan if you are 100% confident that you can repay the loan and the interest on the terms in the agreement.
  • High risk. Many applicants have poor credit records and experience. That presses lenders to write tight terms and expectations into the loan agreement, so applicants should read the paperwork in detail.

Same day loans: Your break in case of emergency

Banks and credit unions stand ready to lend money. But, they take time with their application and approval process. It’s also not cost effective for them to lend money in the small amounts your emergencies require.

Their lending policies rule out the most common problems people face on a daily basis. Same day loans should be taken out only for emergencies. In the big picture of things, these can be high-interest loans, so you must make sure you can pay back the loan on time.

Having said that, if you repay the loan within the terms of the agreement, you can solve your emergency problems with ease.