Surprises happen. That's life. But expensive surprises can be a problem, especially if you don't have the money to deal with them. You might wonder how to handle that sudden car repair or unexpected broken furnace.
Same-day loans can be helpful when it comes to getting fast money. But you might think these loans are too good to be true. Or you're reluctant to consider these loans because of scams.
In reality, most same-day lenders are reputable and trustworthy. Read on to learn more about same-day loans, how they operate, and what you should look for in a reputable lender.
What Are Same-Day Loans?
A same-day loan is financing you receive on the same day of your application and approval. They generally offer smaller amounts of money and short terms, lasting a few weeks or months. Same-day loans aim to provide quick cash with minimal inconvenience.
- Payday Loans: These small-sum loans tide you over until your next paycheck. When you get paid by your boss, you pay back the loan. You can apply for payday loans either online or in person.
- Title Loans: With a title loan, you borrow against the value of your vehicle. “Vehicle†means car, boat, motorcycle, or RV. Often, the payback period is 30 days, though some states allow rollovers and/or renewals. Like payday loans, title loans are available both in-person and online.
- Pawn Loans: Pawn loans are secured with personal property. A licensed pawn shop lends you money based on the value of your assets. In most cases, you pay back a pawn loan within 30 days. If that loan isn't repaid, the pawn lender can take possession of your personal property.
- Online Personal Loans: Online personal loans also fit into the same-day loan category. For example, if you apply to Jora Credit for an online personal loan by 10:30 a.m. CT, you can often receive funds within hours of application and approval.
Requirements for Same-Day Loans
Requirements vary by loan and lend, but you'll definitely need to present proof of income and a state ID. Other requirements may include:
- Proof of clear vehicle ownership with a title loan
- An operating paycheck with a payday loan
You might notice that a credit check isn't always required for same-day loans. Many same-day lenders don't need to pull your credit for loan approval. This means you could qualify for same-day loans, even with bad credit.
Same-Day Loan Use Cases
Most people rely on same-day loans for emergencies or extra cash between paychecks. These loans provide quick cash and shorter terms. If a car breaks down or a water heater needs repair, a same-day loan provides fast money for surprise expenses.
Are Same-Day Loans a Scam?
Due to some bad actors, same-day loans carry a bad rap. Unfortunately, scams do exist when it comes to this type of lending.
But that's not to say all same-day loans are a scam. There are many great options-just keep an eye out for scams like the following.
Demand for Upfront Fees
Same-day loan requirements from reputable lenders do not include upfront fees since assessed costs or charges occur upon loan approval. Additionally, no reputable same-day lender requires payments from money orders, gift cards, or wire transfers.
Guaranteed Approval
By law, no legitimate, reputable same-day lenders can approve your loan upfront. They need to assess your financial situation before approval and funding. Any lender that promises automatic approval is likely a scammer.
Ongoing Threats or Harassment
Avoid any so-called lender that continually pressures you to apply before you're ready. Nor should lenders threaten you with lawyers or jail if you don't repay the loan before it's due.
Jora Credit and other reputable same-day lenders won't threaten or harass a borrower, guarantee approval before examining your finances, or demand upfront fees. The only information you'll need to provide is the generic requirements for loan approval, like your name, proof of income, and bank account information.
What to Look for in a Same-Day Loan
So what should you look for to ensure your chosen lender is legit? Here are some ideas.
Great Reputation and Reviews
You should check a same-day lender's reputation before considering applying. You can find information on third-party review sites like Yelp or Google. The Better Business Bureau also tells you about any complaints made against lenders. Some lenders, like Jora Credit, also offer reviews on their websites.
Respectable lenders earn their reputation by offering flexibility and fair practices. Trustworthy companies are also known for providing favorable repayment terms.
State/Municipal Registration
State agencies register payday, title, and sometimes pawn lenders. In some cases, municipalities handle the registration and oversight of pawn lenders. Be sure to check the required agency to ensure the registration of your same-day lender.
Registration doesn't equal trustworthiness, but it does tell you that the lender in question can legally issue loans in your state or city. It's also essential to be sure that your state allows payday lenders since many don't.
Upfront and Accessible Information
Reputable same-day lenders, like Jora Credit, ensure the accessibility of all information. Before applying, you'll know the loan type, proposed annual percentage rate, and the loan term.
Same-Day Doesn't Mean "Scam"
Same-day loans have a bad reputation because of actions from scammers and bad actors. But most same-day lenders are trustworthy and honest. Your job is to find those reputable lenders. This requires up-front research and a thorough review of all loan documentation. Taking these steps can help you obtain fast money for what you need.
If you're looking for a same-day lender with an outstanding reputation, consider Jora Credit. Jora Credit offers same-day personal installment loans suitable for a variety of needs. The company also has a reputation for fast lending and reasonable payback terms. For more information or to apply for a same-day loan, visit Jora Credit.