The financial industry has boomed again over the past few years, and this has helped a lot of people. No longer is it difficult for people to find a little bit of emergency cash during a difficult time. Once upon a time, the only lenders that existed were the banks, who would ignore you unless your record was squeaky clean, and subprime lenders, who would lend anything to anybody and left the globe in a financial crisis.
Borrowing money is as old as money itself, however. As a result of the financial crisis, new loan constructions had to be developed so that financial companies could continue to earn their money. One of those new developments are same day cash loan options.
What Is a Same Day Cash Loan?
This is a type of loan that has been designed to rapidly meet the financial needs of individuals. They are small loans that have to be repaid very quickly. As such, they are designed specifically for emergency situations.
Financial emergencies happen. It doesn't mean you are bad at budgeting, or that you live beyond your means. Rather, it means that your budget allows for specific things, but not for things like a car suddenly breaking down, an unexpected medical bill, or any other emergency situation. Even if you have a fantastic credit rating, applying for a loan with a bank takes a long time, sometimes even weeks. If you need money today, therefore, a different solution will be needed, and that is where the same day cash loan alternative come in.
Primary Benefit: You Get the Money on the Day You Apply
As implied by the name, these loans are deposited in your account on the day you apply for them (during working hours). You can apply for these loans for any purpose. In fact, you don't even have to tell the lender what you want it for. In most cases, the loans are secured against your paycheck and set up in such a way that their repayment takes precedence over the repayment of any other direct debit that comes out of your account.
High Interest Rates:
It is very important to understand that these loans are designed for emergency situations, and that they are designed to be short term. They carry with them a very high interest rate, which means that running the loan over a longer period of time would prove to be incredibly costly. In fact, in a two to three month period, you will have paid more in interest than you did for the loan principal. Yet it is sometimes possible to keep the loan going, something known as "rolling over". It is not recommended that you do this, because you will end up paying so much in interest that you are effectively throwing money away.
Same Day Cash Loan options have received a bad reputation for preying on the weak, because they are so easy to obtain. However, you have to take some personal responsibility as well. Essentially, if you want to borrow money, you should only do so if you know that you can also pay it back.