Same Day Personal Cash Loans

Interest Rates

Let’s start with one of the most important factors in any credit product – the interest rate. Interest rates for same day loans tend to be higher than for other loans, as they are a convenience product, and so lenders can charge more for them. The interest rate you will be charged depends on both your own personal circumstances and the lender you apply to, but rates can vary from 10% to nearly 50%.

Loan Amount

Same day loans tend to be for smaller sums than other, more structured loans; you can typically borrow anywhere from $500 to $1,500, although some options are available (for those who qualify) for loans up to $50,000. And because same day loans tend to be smaller, you will not need to provide any collateral.

Fees

Most loans come with some fees; these can vary lender to lender, but can include:

• Origination fees
• Processing fees
• Administration fees

• Early repayment penalties
• Late payment penalties
• Legal fees

Make sure you account for the fees your chosen lender charges when calculating how much your funding will cost – especially if you’re only borrowing a small sum.

Loan Length

The very nature of same day loans is that they are needed for emergencies, and are not intended for long term use. So most same day loans have short terms – from a couple of weeks to a couple of months. There are however some longer term options for those who borrow more, and loans for up to 5 years are available. But you should bear in mind that interest charges will add up quickly over long time periods, and other loans might be more cost-effective in the long run. Remember to compare the annual percentage rate (APR) of each option you are considering, so that you can see how loans of differing terms compa

Repayment Terms

The most common type of same day loan is an installment loan, where funds are repaid at regular intervals over the term. The loan offer you receive will explain how much these monthly payments are, principal plus interest, so you can see if you are able to afford the payments.

Another, less common type of same day loan are title loans, where the borrower pledges an asset as collateral (e.g. a car). During the life of the loan, the title of the asset is passed to the lender. Once the money is repaid in full (including interest), the title is then returned.

To learn more about short term loans, please check out this resource from Canada.ca.

Same Day Loan Example

Even in an emergency, it’s important to understand how much a cash loan will cost you. Below are a couple of examples of different loans so you can see how the monthly payments shake out:

How to Qualify for a Same Day Loan

In most Canadian provinces, the minimum requirements for same day loans are:

• Being age of majority in the province of residence
• Holding a bank account with a Canadian financial institution
• Being able to prove you have a steady source of income

A bank account is necessary for the deposit and withdrawal of funds during the funding and repayment stages, respectively. At the borrower’s option, the funds can be automatically extracted from their accounts on the date of their next payday, to avoid the late payment fees that can accompany these loans.

The income requirement is there to reassure the lender that their money will eventually be repaid. While part-time jobs are acceptable under this requirement, a job that the borrower has only commenced recently might be a cause for non-approval.

Same Day Loans and Bad Credit

You may be wondering whether it’s possible to get same day loans with a bad credit score, or even if it’s possible to get loans with no credit. This really depends on the lender you choose and the rest of your financial situation. Some same day lenders do perform a credit check when assessing applications, and some have minimum credit score requirements.

More commonly though, a credit check is not performed, either because the lender relies instead on income information rather than credit, or because the lender offers loans to bad credit borrowers inclusively.

If you’re worried about the effect your credit history may have on your options, don’t panic. There are providers who can help – it just may mean a lower maximum principal amount, or slightly longer loan process, a collateral request, or perhaps just a higher than average interest rate. And for those with no other options, payday loans are available on a quick turnaround time.

How to Apply for a Same Day Loan

Applying for the vast majority of same day loans is simple.

Step One: Gather Your Documents

The paperwork you’ll need for a same day loan application is minimal, but usually includes:

• Government-issued ID
• A bank account statement
• A pay stub or other proof of income
• Proof of address (e.g. a utility bill)

Step Two: Complete the Application

For most same day loans, you will be able to complete your entire application online; simply answer the questions in the application form honestly, and include all of the supporting documents asked for.

Step Three: Sign Loan Documents

Once you’ve submitted your application, you need to wait for a response. Approval will come in the form of a notification, together with loan documents, and a loan agreement that you must sign if you wish to proceed with the loan.

Step Four: Receive Funds

Once the lender has received the signed loan documents back from you, they will be able to release funds directly into your bank account, usually within just a few hours.

Where To Get a Same Day Loan

Although personal loans are available from banks and credit unions, online lenders are the best bet when considering a same day loan, as they are able to move much faster than other providers. You can see a list of the most reputable companies in the table at the top of this page; these companies have been vetted for reputability, so you should feel no qualms about pursuing a loan through one of them.

If you are uncertain about using an online lender, other fast cash options exist, but these may not offer competitive interest rates or the same repayment schedule options as dedicated same day loan providers.

Choosing a Same Day Loan Provider

Choosing the right same day lender for you depends on your circumstances and needs, but you can never go wrong by following the below guidelines:

1. Understand your financial position, including how much you need to borrow, what you can afford in terms of repayment, and if you meet any eligibility criteria (e.g. credit score)
2. Research lenders that offer products that meet these needs
3. Compare multiple lenders, remembering to look at their rates and fees and how much they’d cost you overall
4. Once you have found a competitive option, check the lender’s reputation – via customer reviews, ratings, complaints, etc. You can also get a good sense of whether a lender is responsible by seeing how transparent they are about their costs
5. If you’re comfortable with the lender’s reputation, speak to a customer service agent to get a detailed quote

By following the above, you are more likely to find an affordable loan from one of the many responsible lenders, rather than a disreputable company. And if you’re ever in doubt, remember to avoid any company that:

• Does not make it easy to find vital information (e.g. interest rates)
• Does not have basic company details, such as an address or a registration number
• Charges a fee for application or approval

• Boasts a 100% loan approval rate
• Employs sales people that cannot answer your loan questions or who push you to take on a loan

Benefits of Same Day Loans

For cash-strapped borrowers who need instant liquidity to fund an immediate and/or emergency expenditure such as a medical bill, the appeal of this loan is clear. However, there are other advantages, such as:

Risks of Same Day Loans

Despite these compelling benefits, there are some downsides and risks to same day loans that cannot be ignored. When choosing a loan product for you, it’s vital you understand these potential pitfalls: