By submitting your information you agree to Privacy Policy, Terms of Use, Responsible Lending Practices and Marketing Practices
Joyce Marter is a licensed psychotherapist with 25 years of experience and entrepreneur who founded and successfully sold Urban Balance, a national outpatient mental health company in the U.S. Marter is an adjunct professor at Northwestern University, international speaker, blogger for Psychology Today and mental health thought-leader specializing in the psychology of money.
Payday loans are like paycheck advances because they enable you to borrow funds and repay when you’re torn your next paycheck. Same-day payday loans provide you with the funds you need as soon as the same day or the next business day if your application falls behind the cut-off time. The cut-off time depends on your lender but is often before noon on working days, depending on the lender’s time zone. These unsecured loans even favor people with no credit and you don’t need collateral to be approved.
It only takes minutes to apply for a same-day payday loan online. To repay the loan, you’ll set up an electronic withdrawal schedule to draw the money from your bank account. You will repay the money as a lump sum. And the standard loan repayment times are within 14 days and can match with your next pay period.
Among all loan types, payday loans usually have about the highest APRs, but they have an average APR of 400% which is an equivalent of around $80 fee on a $500 two-week loan. This fee could be quite small to you, depending on how urgently you need cash to settle your needs. Borrowing caps and APRs vary across state lines. For instance, states like Alabama allow you to borrow up to $500, whereas Idaho allows up to $1,000 payday loan limit, etc.
A recent Bankrate telephone survey of 1,000 adults revealed that about 56 percent of Americans are unable to pay an emergency $1,000 bill. Low earnings, educational debts, rise in cost of living, and several other financial commitments can make it hard to reserve cash for unforseen circumstances. That’s where same-day loans come through to help you handle urgent expenses such as:
Getting a same-day cash loan online does not require much, unlike bank loans and other personal loans. Here are the major requirements:
It’s very easy to get your cash using these three simple steps:
You begin by submitting some pieces of your personal details. John Thomas Financial does the hard work of matching you with reputable payday loan lenders. You only have to select which lender you’d prefer to work with by completing their online application. No cost is applicable and it mostly takes several minutes to complete.
You’d be required to sign a contract online to get your loan once you’re approved. Most online lenders provide instant decisions.
Lenders deposit same-day payday loans within a business day. The funds are deposited in the next business day if your application falls behind the cut-off time.
Here are some of the advantages of online same-day payday loans:
A payday loan usually has a fee attached. So you’ll still have to pay the fee in full, even if you pay off the loan before it’s due.
But, if you reconsider and decide the loan is no longer necessary, some lenders who offer 1-3 day satisfaction guarantees can help you opt out by canceling the loan so you return just the principal. However, you may need to email or call the lending company’s customer representative or mail a letter to them within the satisfaction guarantee period. The company will, on getting your notice, debit your account of only the principal.
Ensure to keep record of all interactions when you contact your payday loan provider. The Consumer Finance Protection Bureau will need such documented proof if you have issues and need to submit a complaint through them.
Payday loans are usually repaid within a very short period, which explains why only one-fifth of borrowers can repay them once they’re due. It’s also very pertinent to know the legal actions your lender can undertake in cases of nonpayment. This is because payday loan contracts are legally binding. Your lender can initiate bank withdrawals, collection calls, or report you to credit bureaus, but it’s illegal for them to intimidate you with jail threats. Report to your state attorney general’s office immediately if threatened that way by any lender.
In some states, you can roll over your same-day payday loan for another 2 weeks (14 days) but with an interest, but the number of roll-over cycles varies across states. You can go through your state’s payday loan laws to understand the options available in your location.
Other options to avoid payday loan default include:
It doesn’t matter if you just got stuck with medical expenses, car damages, emergency house maintenance, or other issues, online same-day payday loans present one of the quickest ways to get cash for your urgent expenses. By applying early enough before the cut-off time, your funds will be sent to your account before 6:00 p.m.
So, these loans are generally short-term solutions for unprecedented situations because they have high fees attached. They are easy to get and can help you scale through hard times, but it may be better to obtain an emergency savings fund to access cash frequently. A financial cushion will release you from the debt cycle and fast track your financial goals.