Same day loans are there to provide the money you need the very same day that you apply. Often emergencies arise and it is vital to get same day funding. Bank loans tend to be difficult to get application approval for unless you have a near-perfect credit history. They also typically take anywhere from a few days or weeks to acquire once approved. If you need the money right away, a couple of weeks from now isn’t going to do you much good. Thankfully same day loans do exist.
What are same day loans?
Same day loans, sometimes referred to as instant loans provide immediate funding for sudden needs. In the UK, same day loans fall under a category known as short term loan because they are repaid over shorter amounts of time than traditional long term loans. While some direct lenders offer the same day lending options on larger credit sums, this type of advance is typically reserved for relatively small amounts. Online same day loans from Moneyboat are available in amounts of £200 to £800, or £1500 for existing customers, subject to passing our credit and affordability checks. Loans are repayable over a minimum term of 2 instalments and a maximum of six months. The minimum instalment duration for the first instalment is 5 days. Customers may payback their loan early with no money charged in penalties or fees.
What are the Benefits of a Same Day Loan?
The main benefit of a same day loan is speed. Banks and certain other lending companies leave you waiting days or weeks for approval after submitting your application. This means you’ll also have to wait a long time for receipt of the cash you need. Same day loans however, give you that extra money quickly. Some of the other advantages of this particular payday loan option include:
- Lower Credit Requirements: In most cases, short term lenders offering loans for less substantial financial amounts allow borrowers a little more leeway where credit is concerned. Having a less-than-perfect credit score won’t necessarily disqualify you from securing a loan with a same day lender.
- Unsecured credit: Same day loans are unsecured, which means you don’t have to put up collateral before being granted the cash you need.
- Shorter Repayment Terms: Though having to pay back your same day loan over the course of three pay periods or less may sound somewhat overwhelming, many customers say the short term nature of the loan is actually a positive. You know you won’t spend the next several years paying for a single small-scale financial hardship. Also , if you feel you can’t afford to repay the cash on your coming paydays, or whenever the approved repayment dates are, this is a sign you shouldn’t be taking out the loan.
- Smaller Paybacks: With Moneyboat you’ll be borrowing no more than £800, or slightly more if you’ve established yourself with us. Therefore you know you won’t be paying back thousands like you could be if you’d taken out a larger loan.
- Flexibility: Whether you’re using the money for back-to-school shopping, unexpected car repairs or catching up with appliance replacement bills, you’re free to spend your loan as needed from a list of many options.
Why Apply For A Same Day Loan?
For those times when payday is a little farther away than you need it to be, same day loans can help. This particular option gives you readily available cash in small amounts to be paid back more quickly than traditional loans. If you don’t have a perfect past score where credit is concerned, you may still be eligible for a same day loan with bad credit.
When taking out credit with a loan provider, ensure they have explained everything to you and that you have taken advantage of tools like their online calculator to decide the amount of money you can afford to apply for.
When Will Borrowers Receive Their Money?
There is an almost immediate transferral of funds after the successful application and loan approval is complete. In cases where Faster Payments support a borrower’s bank, the cash should be credited on the same day. If the bank doesn’t support Faster Payments, the funds could still be available the same day. That means the emergency issue that a borrower is experiencing can be remedied quickly.
Can Borrowers Have More Than One Loan at the Same Time?
Emergency lenders will, as a rule, limit a borrower to one loan at a time. However, once repayment is complete, you may apply again. However, emergency lenders don’t recommend doing so unless it’s absolutely necessary. Rather than getting into a situation when you need money now, it’s far better to stick to a budget rather than taking out credit to take care of normal expenses. If you need to apply for emergency loans on a regular basis, it’s important to take steps to mitigate existing financial problems that are creating ongoing issues. There are numerous agencies who are authorised to assist borrowers in overcoming budgeting issues.
What Happens When Borrowers Have Problems Repaying a Loan?
You’ll ideally repay your loan according to the agreed-upon schedule. However, emergency lenders understand that life sometimes produces extenuating issues that can impact repayment. The important thing here is to notify your credit lender as soon as an issue develops to avoid any other ramifications.
Representative Example: based on the last working day of each month
Interest rate 255.5% pa (fixed) Representative 939.5% APR
|Payback period||4 months|
How Can I Get a Same Day Loan from Moneyboat?
First of all, you can find the right value of loan to apply for using our loan calculator. Then you can refer to the application we’ve provided. From there, you’ll need to ensure you fill in the required fields. This credit application process usually only takes about 10 minutes or so depending on whether or not you have the necessary financial information to hand when you start your application. You’ll also need to meet our eligibility requirements. We ask you about:
- Age: You must be at least 18 years old in order to qualify for our same day cash loans.
- Employment: You must have a regular job and proof of employment.
- Income: Having a regular income and proof of such gives us reassurance you’ll be able to repay the cash loan without placing yourself in further financial trouble.
- Residence: In order to be eligible, you’re required to have a valid U.K. address.
- Bank Account: A current U.K. bank account is needed for both deposit of your same day loan and repayment. Unlike other same day lenders, we won’t ask for your bank account information your application has been approved and you’ve been heard our terms.
You’ll also need to answer questions regarding your monthly expenses before being approved for a same day loan. Verification of your identity, income and address as well as review of your information usually takes around half an hour. Once you’re approved, the money should reach your bank account very quickly.
What Happens when the Time Comes to Repay My Loan?
Repayment is the primary concern for most people borrowing payday loans of any kind. How long will I have to pay? When will credit repayments be due? While filling out your application and consulting our calculator, you’ll see a few different options for repayment. First off, you may choose one of three loan repayment terms:
One Pay Period: Your entire payday loan amount and all interest rates are due on the agreed-upon payment date.
Two Pay Periods: On your first payment date, you’ll pay interest accrued on your same day loan up to that point. When the second pay period rolls around, you’ll be responsible for the loan amount as well as any additional interest charges.
Three Pay Periods: Accrued interest is paid on your first two payment dates. On your final payment date, the loan amount and further interest is due.
At the point that you apply, you’re able to choose the credit term best suited to your needs, but longer terms may not be available for smaller loans. Due-on dates are based on your pay schedule with a grace period of at least 21 days between receiving the loan and making your first payment. You can also choose between two different ways to repay your same day loan:
- Link your account to a debit card from which cash payments will be taken on previously agreed-upon dates.
- Have payments automatically drafted out of your bank account on pre-arranged dates.
Aside from these options, you may choose to pay early if you find yourself able to do so. No penalty fees apply for those who wish to pay off their same day loans before the end of their loan term. In fact, clearing your credit balance early could actually reduce the amount of interest you’ll pay overall. It should also be mentioned that a 0.7 per cent interest rate applies, which will be multiplied by your total approved borrowed amount and accrues daily.
What if I Can’t Make a Payment?
As we’re all well aware, circumstances beyond our control sometimes occur and have an impact on our ability to meet credit responsibilities. We understand this and have made provisions for such incidents. As is the case with any creditor, such as your automobile or mortgage lender, and even your utility providers for that matter, it’s always best to call us and explain your situation if you’re unable to make your loan payment.
A late payment brings about a one-time late fee of £15 which is added to your account. If you’re worried about repayments, it’s important to go over these points with us before taking out your loan.
Missing payments can lead to financial problems as short term loan lenders will almost always charge a penalty and your credit score will also suffer. As FCA-authorised providers of payday loans, we have control over the process, and will ensure we observe responsible lending credit terms when considering your application for our cash loans.
Are There Any Downsides to Same Day Loans?
Same day loans are designed to help bridge the gap when your finances fall short. While they’re immeasurably useful when situations warrant, they do come with a couple pitfalls. For one, interest rates are quite a bit higher with this option in comparison to conventional loans.
Secondly, a handful of people have inadvertently forced themselves into financial ruin via this route. A few allow themselves to rely too heavily on instant access to extra funds. They ultimately end up paying far more in interest rates than they’re borrowing, taking a significant chunk out of their income; as such, they land themselves in worse financial shape than before.
Same day loans are products that are designed to help bridge the gap until payday or beyond when your finances fall short, usually when you are experiencing a financial emergency. While they’re immeasurably useful when situations warrant, they do come with a couple of pitfalls. For one, interest rates are quite a bit higher for short term credit products in comparison to conventional loans.
Secondly, a handful of people have inadvertently forced themselves into financial ruin via this route. A few allow themselves to rely too heavily on instant access to extra funds through payday loans. They ultimately end up paying more in interest rates than they’re borrowing, taking a significant chunk out of their income; as such, they land themselves in worse financial shape than before.
Is There Anything Else I Should Know?
First and foremost, it’s important to use same day loans responsibly. If you find yourself turning to this option, when you’re strapped for cash, repeatedly, you may want to consider talking to some debt advice companies. Payday loans were created with the occasional monetary emergency in mind. However we advise using discretion when deciding just what constitutes an emergency and asking, is payday credit really the answer?
Secondly, make your loan payments in a timely manner. Whether your lender is linked to your debit card or withdrawing payments directly from your bank account, be sure the funds are there on established payment dates. If they’re not, you could be facing a late fee and expensive interest as well as penalties from your financial institution. In the event your regularly scheduled payday is going to be later than usual, just let us know in advance so that we can do everything we can to help you to meet your credit obligations.
We understand you may need a little extra time to make a cash payment. However don’t get caught up in interest and late payments alone. Please contact us and let our customer support team guide you through a better repayment plan, as explained above.
Plenty of people have found solace in same day loans, despite the concept receiving a fair amount of flack over the years. The true pitfalls only come into play when people abuse this ready access to extra income and available payment extensions. If, after your application is approved, you use same day loans sparingly and making your payments on time, they can be a helpful credit option to have on your side.
Fill out the application form we’ve provided to start the process, or contact us to learn more about same day cash loans as well as the available alternatives.