What Are The Different Types Of Same Day Loans?

There are a few different styles of same day loans out there, and knowing which one is right for your situation is going to greatly speed up how long it takes for you to get your money.  In this Hub I want to break down three different styles; payday, title, and personal bank loans.  Once you have an idea of what you're going to qualify for, you'll know which to pursue.

It's also important to know that will all of these different types of fast cash, you're going to pay for the speed.  Both title and payday loans don't require a credit check, which also drives the price up even higher.  That's an unfortunate side effect of being able to get money this quickly, but it's the price that has to be paid.

There are also a lot of ways to get cash today without a loan.  Selling some of your stuff or working an odd job for cash are both good ways to raise funds very quickly.

It's also important to note that with online loans you will rarely get paid today.  Most of these loans are deposited directly into your checking account, which requires your bank to be open to make the funds available to you.  In nearly every case, your funds will be available first thing the next business day.

Getting your loan locally can circumvent this since you will normally be cut a check.  Even then you may not be able to access all of your funds right away since your bank has to clear the check once it's deposited.

Payday loans are short term, fast, unsecured loans that use your income to determine your loan amount.  In order to get approved for a payday loan you are going to have to have a steady job that's employed you for at least six months and make over a thousand bucks a month there.  In addition to your job you will also need a checking account, valid ID, and be over 18 years old.

These loans are available both locally and online.  Applying online is best when it's a far drive to your closest lender, but keep in mind that you won't get paid until the next business day.  Getting a loan locally is easier, but is impossible for many people.

A payday loan is expensive.  You can expect to pay around $25 for every $100 that you borrow.  Generally, this loan will be repaid on your next payday, and online loans are automatically withdrawn from your bank account, and local loans will deposit a post dated check that you wrote them when you applied for your loan.

These are also called cash advances and paycheck loans.  All of those terms are interchangeable, and the loans are exactly the same.

Title loans are fast, secured loans that can get you a lot more money with longer terms than a payday loan.  The requirements are much more specific for a title loan, however.  You are going to need a car that has been completely paid off and possess the title to it. 

The amount of your loan is dependent on the resale value of your car.  Generally, you can borrow up to 50% of your car's value, so if you have a nice car you can potentially borrow a lot of money.

Terms for these loans vary a lot from lender to lender.  Some will require you pay it back in full in 30 days, whereas others will allow you to set up monthly or biweekly payments over several months.

Should you be offered "interest only" payments for the first few months on a title loan, turn it down!  Title lenders pitch this as a way to reduce your monthly payments, but in the end you pay a ton more money since you're paying off all of the interest before the loan amount.  Interest keeps building over time, extending the length of your loan.

Since this is a secured loan, failure to repay the loan will result in your car being repossessed and sold, so be very careful with your loan payments!

Banks aren't particularly known for their speed in approving loans, but a bank in South Carolina is spearheading a trend in banks offering payday loans.  These loans are much less expensive than regular payday loans, and can actually work to improve your credit.  Normally they carry a 30 day term to prevent interest from rolling into the next month.

Should you need more than that, and have a good credit score, credit unions can process loans much faster than banks.  You may need an extra day to get paid, but you will enjoy the benefits of low payments stretched out over several months.

As you can see there are quite a few different types of same day loans.  Knowing the one that you're going to be able to get approved for is going to streamline your application process greatly.  Don't waste your time applying for loans that you don't have a shot at getting, do it once and get paid today!