Taking out a loan is a significant financial decision that should always be carefully considered. It’s especially important to ensure that a loan is affordable for you, and that you will be able to make your loan repayments on time rather than getting into more debt.
However there are times when you need money urgently, and in these circumstances a same day loan could be the answer. The above affordability considerations still apply, but you need to hurry things up to get your money as soon as possible.
But is it safe to take out a same day loan? How expensive are they, and can you really get loans same day or is that just a marketing ploy?
In this article we take a quick look at:
Yes it is possible, but you are wise to be wary. Some financial adverts promising instant money do turn out to be clickbait, and the loan process is longer and more involved than you are led to believe. And, as always, you need to be on the lookout for scams, and for lenders that will charge unacceptably high rates of interest on a loan.
So always check that a lender is regulated by the FCA (Financial Conduct Authority) as this means that they are obliged to have procedures in place to resolve any disputes arising with their customers.
But bearing all this in mind, there are many reputable lenders that offer genuine same day loans. For example, Munzee’s online loan application process can be completed and submitted in minutes and we will make an instant lending decision. If your loan is approved, we aim to get the money into your account the same day.
Reasons for taking out a same day loan vary enormously between borrowers, but five of the most common are:
When something goes wrong in your home, you need to get it sorted fast. Whether the heating has stopped working, there is an electrical issue, or something is leaking, you don’t have time to get the money together, it needs doing now.
Another common home-related expense is when an appliance packs up. You may be able to get your washing machine, dishwasher or fridge-freezer repaired, but it could also be just as economical – and certainly quicker – to replace it.
If you rely on your car for daily work and family trips, you need to get it fixed fast if it breaks down. This is another situation that can’t wait, and where a same day loan could save the day.
Any kind of family emergency is a horrible situation to be in, and it’s made even worse if you don’t have the money to deal with it. Whether it’s medical or care costs, funeral expenses, vet’s bills or an urgent trip to help someone out, you need money straight away to get it sorted.
It’s embarrassing if you are caught out by the need for a deposit. Many major expenses need some kind of deposit up front. So even if you have budgeted for the expenditure at a later stage, you may be faced with a deposit you weren’t expecting. For example, a car, holiday, wedding, family event, or the early stages of renting or buying a home. In this situation, finding a company that offers loans same day could be the solution.
If you are looking for loans same day, you need to check that it is the right option for you. It all sounds a bit too good to be true. So are there any disadvantages?
Let’s take a look at some of the pros and cons.
As we saw earlier, there are reputable lenders around – such as Munzee – who can genuinely provide loans same day. This enables you to get your money fast, ready to deal with your urgent financial need.
Some companies providing loans same day will also offer flexible repayment options. For example with a Munzee same day loan, the normal repayment period is 24 months, but there is no charge if you want to repay us earlier than this. Which means that once your financial emergency is over and your finances settle down again you can pay off your loan as soon as you are ready to do so.
Lenders will check your credit score as part of the process of approving a loan. But did you know that by taking out a loan and managing it well, you can improve your credit score? If you have a recent loan and there is evidence of you managing the loan responsibly and keeping up with the repayments, this is a positive sign to other financial institutions that you are a reliable borrower.
If you are looking for loans same day it’s important to understand the amount of interest you will be charged. Also check whether there is any charge for setting up the loan. Some lenders charge higher interest rates and set up fees for same day loans. Munzee has the same rate of interest for all our loans, and no set up fees.
If your same day loan has higher interest rates and/or set up fees, this may make it less affordable than it first appears. As with any loan, it’s essential that you are confident you can afford the repayments before taking it out. A responsible lender will take this into account as part of their lending decision, but you also need to be sure yourself.
We saw earlier that taking out a new loan, managing it responsibly, and paying it back in full, can all have a positive impact on your credit score. But unfortunately the opposite is also true. If you enter into a loan agreement but cannot keep up the repayments, or if your overall borrowing is more than you can afford, this will begin to have a negative impact on your credit score and will impact your future financial options.
We hope that this article provides useful information on the most common reasons for looking for loans same day and the pros and cons of doing so.
If you are currently in this position, Munzee would like to help. We offer same day loans between £1000 – £5000 with no set up fees. Our normal repayment period is 24 months but there is no charge if you want to repay us sooner than that. So check out our same day loans page to see how we can help.
And do visit us here again soon for more financial and lifestyle tips from Munzee Loans.
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