On average Americans have to wait between five and seven days in order to receive the funds of a requested personal loan. While this dynamic and processing time has been the norm for many decades, it is almost obsolete by modern standards.
Whatever the reason might be, knowing that you can get a fast loan to help overcome the situation is a comforting fact for many individuals. Considering that almost 80% of Americans are living from paycheck to paycheck you can see how big the demand and the necessity for these types of fast funding loans are. This rise in demand has been the reason why larger firms have started to consider offering products to individuals with a bad credit score or simply high risk.
This new market has been the reason why the payday sector has mutated from an old hard cash lending business to a more structured, formal and safer industry.
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Is a “Same Day” Loan the Right Alternative?
There is not a perfect loan to choose from so it is incredibly important for individuals to understand the pros and cons of a loan before taking one. Even if your current situation is not the best, it is not recommended to take more debt just to get extra time.
Before even considering a loan as an alternative it is important to be transparent and honest about the repayment of it. If you are aware that your financial situation will not allow you to pay your loan every month, then you will be making your situation even worse when you add up all the penalties and extra fees for late payments.
***Note: Most firms offer a relatively flexibly plan in terms of the length of the loan. While the idea of getting out of debt as fast as possible sounds like a no brainer, you should consider if you are in the capacity of actually affording to pay back in a small period of time before signing for the loan. If you are in a tough situation where the money is just too tight, it would be better to ask for a longer tenure and get more time. At the end of the day, most firms allow for early repayment with so this way you will be getting a buffer and you will decrease the odds of dealing with late payment fees or penalties down the road.
Best Same Day PayDay Loan Providers 2021: Summary
Best Same Day PayDay Loan Providers 2021:
1. Money Lion | Most Complete Option
Money Lion is not your typical payday loan provider, instead, it is a market-disrupting firm with a model that acts as a financial membership for their clients. This membership offers a vast range of products and services like debit cards free of charge, payday advancements and even long term personal loans that can be requested on the spot and with an almost immediate disbursement.
One important aspect of the firm is that they openly market their personal loans as the best option in the market for individuals who are interested in getting some money to cover last-minute expenses and at the same time be able to start working on their credit scores. The entire model is focused on helping an individual to improve their situation and to improve their creditworthiness in the process.
This is a firm that is worth taking the time to learn about and to review their services and products. Disregarding your current situation Money Lion can become an important part of your finances and it can help you improve your situation in the long run.
- Free Money Management App
- Report to Credit Bureaus (Will help improve credit score)
- Visa Debit Card as part of the membership
- Not available in all states
2. Earnin App | Community Oriented
Earnin is probably one of the most popular platforms in the market today. It is important to keep in mind that the firm does not consider itself as a payday loan provider but a community-oriented firm. The key difference is the fact that the company acts with a more transparent approach, similar to a fiduciary model. With Earnin you can get access to fast funding that can help you overcome your financial problems in the short term.
Continuing with their community-oriented model, the firm allows you to even decide how much you are interested in paying for fees and commissions. The idea behind this is to offer individuals in a bad situation to get the opportunity of not having to pay for any extra charges for their loans.
Think about it this way, right now you are borrowing and your situation does not allow you to pay heavy fees for the loan, in the future when your situation is better and you need a loan then you voluntarily pay more for it. This cycle allows the firm to offer loans that can be almost free and still be profitable enough to sustain its operations.
Note that if you are interested in a relatively larger loan you might have to look for a different firm. While Earnin is an amazing firm, their borrowing limits are relatively low and their services are more suitable for small and short term borrowing.
- Incredibly Cheap
- Simple and reliable
- Low Borrowing Limit
- Eligibility: This might be a problem as the firm is currently not available for individuals who are freelancers or self employed.
3. Avant | Best Option for Damaged Credit
Avant credit is currently one of the largest online lenders in the US. How of the main reasons for the success of this firm is the fact that they target individuals with a bad credit score as their customers. This is one of the only few firms in the country that offers boths consolidating and traditional personal loans for individuals with a bad credit.
On the other hand, the company has become known for offering an almost immediate processing time that can deliver the funds the very same day the request was made. Not many firms can allow you to consolidate debt or simply borrow a large sum of money for an episodic emergency, and still be able to provide you the money in a range of under 24 hours.
It is important to mention that the entire application process is done online and it only takes a few minutes to fill the forms to be ready. Once you have submitted the request it will be reviewed by their lending advisors who will determine your eligibility or not. Just like a regular payday firm would, Avant credit does not perform any hard inquiry that affects, even more, your credit score.
If you are looking for a well-rounded firm and the size of the desired loan is above $1,000, then you should seriously consider Avant as your goto option.
- Transparent Fees
- Grace periods and flexible payments
- High Borrowing Limit
- High Administrative Fees (+4.8%)
- Mixed reviews online
- High APRs
4. Rocket Loans | Flexibility
Rocket loans is probably the most complete and complex option from this list, not only it is a firm that is fueled by a mortgage giant but it also follows a pretty similar model to a traditional bank. An important aspect that you need to know about this firm is that it offers the highest borrowing limit form this list, allowing individuals with a relatively “ok” credit score to borrow up to $45,000 with a long term structure (income dependable).
As mentioned before this is a firm that emulates a traditional structure, making it a great option as it allows individuals that would still be rejected by a traditional lender to get more competitive pricing on their loans. Keep in mind that in order to receive the funds on the same day the request must have been submitted and approved before noon, otherwise, it would be processed the next business day.
- Fast funding
- Soft credit check with application
- Low starting rates
- Origination and late fees.
- Relatively Good Credit Score
- No co-sign or secured loan option.
5. LendUp | Longer-Term Borrowing
LendUp follows a very minimalistic approach to borrowing where individuals with any type of credit score can borrow money almost instantly. Instead of overcomplicating the process like many traditional insitutions usually do, the firm decided to improve their platform allowing a fast processing and an execution time of under 24 hours for approval and disbursement.
A great aspect of this firm is how simple and straightforward it is to apply for a loan and the fact that since the very beginning you know how much it will cost you to borrow money over the entire period of the loan. This extra layer of transparency helps its users to have tighter control since day one, and at the same time, it allows individuals to plan for their expenses appropriately, and without any surprises.
The overall service offered by LendUp is pretty much standard to what other firms are offering in todays market, it might not be the best or cheapest option but it is certainly a reliable and secure option to consider. Please note that LendUp is considerably smaller than other firms mentioned in this article and also that the firm is only offering their services in nine states at the moment.
- Long term loans available
- Instant loan approval or rejection
- Same day disbursement
- Narrow state offering
- Extremely High APR
While a loan might sound like the best option to overcome a shortage of funds, it is important to understand the repercussion that such a decision can have in someone’s life. Many individuals fail to understand their situation due to desperation, making irrational decisions in moments of high stress. The main problem with getting a payday loan or any type of loan, in particular, is that people underestimate the impact of such a responsibility in your financial situation and your pocket.
Before even considering borrowing money it is important to understand your current finances without any sugar-coating. By analyzing your situation transparently you will be able to understand if you are in the capacity of facing the responsibility of a loan or not. Disregarding wheater or not you can face the loan, this exercise will provide you with insights to understand where are your pain points in terms of spending. This type of situations become easier once you understand them completely and you also have a plan on how to approach them.
The best advice we can provide is for you to do your due diligence and review both your financial situation and also all the available options before making a final decision. The time invested in understanding the big picture will help you make better choices and overall improve your situation further than just paying for a last-minute expense.
Glossary of Loan Terms
Can an individual with bad credit apply for a same day loan?
This is probably the number one reason why individuals take payday loans even though they know they are expensive. Considering that most traditional institutions will not consider anyone with a credit score under 640, it proves how important this category has become for individuals with a dented credit score. Note that while the credit score will not become a show stopper for the loan, it will certainly be checked in order to determine your overall creditworthiness and will be also used to assign your interest rates. Don't be surprised if during the application you are asked to allow for a soft inquiry credit check as part of the requirements.
Will I need a cosigner for a same day loan?
Typically if your credit score is not on point or if you are trying to get an unsecured loan, a common practice in the US is to be asked for a cosigner that will act as a final responsible in case of your default. As part of their flexibility standards, many firms have decided to stop utilizing co-signers for this type of loans, in fact for most US lenders the only category that still uses this tool frequently is the student loans sector. In most modern firms you will not be asked a cosigner at any point of the application or the process.
How much money can I get from a same day loan?
The same day loan is supposed to be used to cover last-minute expenses that typically won't be so big, this means that most firms are regularly utilizing a relatively small borrowing limit. Note that these limits will vary from firm to firm and that it will also depend on your income verification. Typically speaking most firms will not issue any loan that exceeds a monthly income of one individual with a certain rate, this in order to ensure that at least on paper an individual would be able to afford to pay back the loan and cover their basic necessities in the process. Most modern firms are looking at amounts in a range between $100 and $1,500, while higher loans are possible the requirements can be harder and the overall process can take a little bit longer.
Are same day loans risky?
Over the years, payday loans and same day loans started to be surrounded by a bad name due to all the lenders that were taking advantage of their clients. Nowadays this is a market that has been redesigned with a much harder and tougher regulation that ultimately protect the borrower from being churned out of fees and interests. Without any hesitation, we can say that this is a safer market than it was just a decade ago before all the new regulations started. Having said so, it is still a responsibility of the borrower to review different options before choosing a final provider. More than simply being negative about the lenders in this sector, many individuals fail to understand the responsibility acquired when they borrow money with such a firm. As long as you stay within your lines and payments are done on time you won't have much troubles with the same day loan, the real problems arrive when people start paying their loans late or simply don't pay them at all. If you think that owing money to a traditional bank is bad, I can assure you that you don't want to default on a payday loan.
What are the minimum requirements to apply for a same day loan?
Keep in mind that this is a fairly broad market with hundreds of different providers offering their services around the US. On average the most common requirements to become eligible for this type of loan are :
- Age 18+
- Verified income (employment)
- Verified debt to income
- Active bank account
Take into consideration that these are just the basics requested by most firms and that ultimately the requirements will vary from lender to lender.
Is the information from this type of loan shared with credit bureaus?
This is a fairly common question that can play both positively or negatively depending on the individual. The answer is that it will vary between providers and also the length of the loan and its size. For an individual with a damaged credit score, getting a same day payday loan might be the only way to get an unsecured personal loan in today's market. If used properly this can be a great asset to start rebuilding your credit score over time. At the same time, if not used properly any wrongdoing will also be shared directly with the credit bureaus which can result in further damaging of your credit score.