5 Steps to Same-Day Cash
When you need fast cash in an emergency, taking out a loan is the first thing that comes to mind. Ideally, borrowing money is a surefire way to cover temporary cash shortfalls.
While some loans can take a long while to process, you can get your money the same day you apply with payday loans. Whether you need to pay your utility bills, pay a debt that’s due, or do some repairs, you can rely on payday loans to fix any issue.
Everyone can get these small-dollar short-term loans as they do not rely on credit history to approve. Most payday loan lenders give cash with no hard pull on the credit report. So, even if you don’t have good credit or your credit score falls below 640, you can still get instant cash when you apply for a payday loan online.
Payday loans are pretty quick to process, and you can access the cash often within a few minutes, the same day, or within one business day. However, you should be confident upon applying that you can repay the debt on time.
Generally, you’ll have to write a postdated check to the lender to deposit when you get your next paycheck, so be sure that it’s something you can afford to repay when it falls due.
So, what are the steps for applying for payday loans? Let’s look at the four steps to receive same-day cash.
Shop Around for the Right Lender
Shopping for the right lender is the first and the most crucial step when applying for a payday loan. It’s vital to deal with a suitable and legit lender lest you get into more trouble than you are in already.
Different payday lenders have varying terms, loan amounts, and rates which will impact the amount of money you get at the end of the day. Therefore, before you apply, shop around to eliminate those lenders that don’t meet your needs. Look into the minimum requirements of each lender to ensure your situation meets the criteria.
When you want to borrow money from a payday loan lender, you need to connect yourself with someone fit for you. Luckily, we have already done the challenging part for you, so all you need to do is to hit the ‘get started’ button and apply.
AdvanceSOS has compiled a list of approved and trusted lenders in different states, so all you do is just fill in the form, submit, and wait for the right lender to contact you. This will save you the time and effort of scrutinizing lenders on multiple websites.
Choose the Right Loan Amount
The amount you choose depends on several factors, including what fits your budget, what the lender is willing to offer, and the states’ maximum limit.
Different states have a maximum limit which mostly ranges between $300 and $1000. Therefore, you can either apply for the entire amount your state offers or less, depending on your budget or your lenders’ limit.
Some states offer you the chance to apply for payday loans from different lenders. This means that you can get more than one payday loan if you desire. However, you should be sure that you’ll be able to manage repaying all of the money once due.
A payday loan is one of the most expensive types of loans. The cost of payday loans is very high; for example, their APRs can go over 400%. However, most states have put in place laws and regulations to help curb the exploitation of borrowers by predatory lenders.
If a payday loan doesn’t seem to be an ideal option for you, you may consider alternatives such as:
This is one of the best payday loan alternatives. You can get an installment loan of up to $5,000, which is a larger amount than what payday loans offer.
The beauty of this loan type is that you can repay it in installments (just as its name suggests) for 6 to 18 months. Their APR is also lower than that of payday loans, though it can cost more overall since the longer the loan term, the more the interest rates you’ll pay.
Auto Title Loans
Another same-day cash type of loan is the auto title loan. This is a loan given to a borrower after surrendering their car’s title to the lender to act as collateral. With auto loans, you can get up to $50,000. The amount you get typically depends on the value of the car.
Although the APR of a car title loan is lower than that of payday loans, you risk losing your vehicle if you miss payments or default. The terms of auto loans are similar to payday loans, but the auto loan has an extended loan period. Because of the longer loan term, you end up paying more in fees.
Try Other Ways to Make Money
Finding quick ways to make money and earn during the same day you are in a bind may be a great alternative. However, this is not an easy way to raise same-day cash. You can consider hustles like selling your used items online, driving for a ridesharing company, or doing online gigs like data entry, etc.
Borrow from a Family Member or Friends
A friend or a relative can come in handy when a crisis arises. You can ask one of these close people to help you cover a bill or meet a quick emergency you have. The good thing about this loan type is that it does not affect your credit score, and you don’t pay it back with interest, though this depends on what you both agree.
Ensure you Meet the Lending Criteria
When applying for a payday loan, you need to meet the lending criteria. Otherwise, your application won’t be approved. Some of the requirements to meet when applying for a payday loan include:
- Be of legal age. That is, be 18 years or above.
- Have a U.S. bank checking account. This is where the lender will send the money to, and this is also the account from which they’ll recover their repayment.
- You must be a U.S. resident.
- Have a valid identification. Provide your ID or a valid driver’s license.
- Have proof of or verify your source of income, making at least $800 per month. Typically, loan providers must assess your ability to repay the loan. If you’re employed, you can provide your pay stubs to verify that you are employed. If you have any other sources of income, you’ll have to verify those too. Lenders use this as a precaution to avoid lending to someone that will default.
Understand Your State Laws
Every state has varying payday loan laws and regulations. Some states have entirely banned payday loans, while others have placed restrictions to regulate and protect the parties involved. For example, the law regarding the maximum cost of a loan helps protect borrowers from exploitation from unscrupulous lenders that charge high interest rates.
Before you apply for a payday loan, research and understand your state laws and regulations. Learn what the lender is allowed to charge, the maximum loan limit, and how the turnaround looks.
Compare the state laws with what the lender has included in the loan agreement. This can help you pinpoint discrepancies between your lender and the government, as well as help you avoid falling into the hands of scammers.
Amanda is a senior writer at AdvanceSOS. She has more than six years of journalism experience, mostly in the finance sector. She graduated with a Bachelor’s Degree from Drew University.