How can same day loans be paid back?
Different lenders have a variety of different preferred repayment methods, some of which include post-dated checks, automatic payments credited directly from the bank account, and/or cash settlement on a pre-defined date.
What is the maximum amount that can be borrowed under these loans?
Each lender has their own restrictions concerning the cap on the amount available to be lent out. This is also a function of the borrower’s income and collateral. The higher the income and/or level of collateral posted, the higher the lender will be willing to go in terms of principal amounts lent.
What types of surprises should I keep watch for?
Same day loans may often come with fees regarding certain aspects like: early repayment penalties, administrative fees, missed payment fees etc. At the outset of gaining the funds, it is important to read the requisite documents to make sure that you understand all fees that you could be on the hook for.
What happens if I miss a payment?
A representative of the lender will contact you and ask for the payment to be made. If it cannot be made, then there is the option of a loan extension. Failing that (e.g. if the borrower is delinquent), then the credit score will be impacted for up to 5 years and the lender may choose to take additional legal action.
Can I use it to repay existing debt?
While there is no restriction on the usage as mentioned above, it is important to keep in mind that the interest costs for the payday loan are significantly higher. Therefore, this option should likely only be undertaken when a debt repayment is due soon, and the borrower has absolutely no way of raising the cash required.
Can I apply if I have bad credit?
Yes. While there is no guarantee of being approved, borrowers with poor credit may apply for same day loans.