If you’re in a pinch and need cash fast, a same-day loan can provide you with the funds you require the same day you apply.
You may need more time to access your funds even if you are accepted. This is because getting same-day funding frequently requires you to meet the lender’s requirements, such as applying by a specific time of day. If you don’t, you’ll have to wait until at least the next business day, possibly longer, depending on your bank.
Furthermore, some types of same-day loans can be prohibitively expensive. If you need money right away, it’s critical to understand the total cost of the loan and ensure you have the means to make timely payments.
Here are our top recommendations for the best personal loans that can be funded the same day you apply. Personal loans are frequently more affordable than other types of same-day loans.
Best for Large Loan Amounts: LightStream
What distinguishes LightStream: Loan amounts range from $5,000 to $100,000, making it a good choice if you need a larger sum of money than some same-day lenders offering only small loans. LightStream offers repayment terms ranging from 24 to 144 months.
According to the company, people with good credit histories are eligible for LightStream loans, and those with the best credit are eligible for the lowest rates.
LightStream offers low rates to those who meet the requirements and a rate reduction if you sign up for autopay. It also has a rate-beat program that guarantees to beat competitors’ rates by a small percentage if specific requirements are met.
Some lenders allow you to view estimated rates and loan terms before submitting a formal application without affecting your credit scores. When you apply for a loan with LightStream, a hard credit inquiry will be made, which may lower your credit score.
Best for Checking Rates Before Sending a Formal Application: Rocket Loans
What distinguishes Rocket Loans: Before submitting a formal application, Rocket Loans performs a soft credit check to show you your estimated interest rate and loan term without affecting your credit scores. Remember that your prequalification must reflect your final terms and approval accurately. Loan amounts range from $2,000 to $45,000 from the company.
Rocket Loans charges a one-time origination fee of 1% to 6% of the loan amount, which is deducted from your loan when it is issued. Keep this in mind as you select your desired loan amount. If you do not make your payment within 10 days of the due date, the company will charge you a late fee and a returned check fee.
The prices range from low to high. Credit scores, income, loan terms, and other factors, among others, all influence your actual rate. Compare different loan offers if possible.
Rocket Loans offers only two repayment options: 36 months or 60 months. However, if you pay off your loan early, there are no prepayment penalties.
Best for People With Less-Than-Perfect Credit: OneMain Financial
What distinguishes OneMain Financial: Because nearly half of OneMain Financial’s customers have FICO scores lower than 620, this lender may be an option even if your credit is less than perfect. Its personal loans range in size from $1,500 to $20,000, with repayment terms ranging from 24 to 60 months. (Your loan amount may differ if you apply through Credit Karma.)
Remember that there’s a chance you’ll only get a secured personal loan, which requires you to put up collateral like a car to be approved.
Because it works with borrowers who do not have strong credit histories, OneMain Financial charges higher interest rates than some other personal loan lenders. However, compared to other businesses, such as payday lenders, its rates are less expensive.
OneMain Financial charges an origination fee that is either a flat sum or a percentage of the loan amount, depending on where you live. It also charges late fees and insufficient fund fees in states where it is legal.
A soft credit inquiry is used when you apply for prequalification with OneMain Financial to check your estimated rate and loan term without affecting your credit scores. However, remember that your final rate and approval may change after formally applying.
Best Credit Union for Same Day Loans: Alliant Credit Union
What distinguishes Alliant Credit Union: To apply for a loan with Alliant Credit Union, you must be a member, but becoming one is simple. Personal loans from Alliant Credit Union provide competitive rates, low fees, and debt protection plans to help you maintain your financial stability whether you are already a member or decide to join.
The credit union offers loans ranging from $1,000 to $50,000 with terms ranging from 12 to 60 months.
Alliant Credit Union offers competitive interest rates on its loans. Your credit score, income, preferred payment method, and loan term are just a few of the factors that influence your actual rate. Personal loans with shorter terms typically have lower interest rates than loans with longer terms.
Alliant Credit Union does not charge origination fees or prepayment penalties on its personal loans.
If you lose your job, become disabled, or are otherwise unable to make your monthly payments, Alliant Credit Union offers a debt protection plan that may allow you to cancel your loan balance or payments entirely.
Best Choice for Small Loans: Earnin
What distinguishes Earnin: Unlike the other lenders on this list, Earnin allows you to borrow money against your next paycheck and does not conduct a traditional credit check. Borrowing limits for new Earnin users are $100 per pay period. If you continue to use the app and repay Earnin on time, your limit could rise to $500.
To use Earnin, you must track your hours using electronic timesheets or at the same place of employment each day. A regular payment schedule is required, whether weekly, biweekly, semimonthly, or monthly. Furthermore, more than half of each paycheck must be deposited directly into one checking account.
Earnin charges no interest or fees for its cash advance loans. Instead, it solicits voluntary tips from users. However, tips are not required to use the app.
Earnin’s Balance Shield feature helps you avoid overdraft fees by sending you alerts when your checking account balance is about to fall below a certain threshold.
What You Should Know About Same-Day Loans
You have several options if you need a same-day loan. While the ability to receive money immediately may be advantageous in your current situation, it is critical to understand the associated fees and interest rates and the potential long-term effects they may have on your finances.
The interest and fees on many same-day loans are significantly higher than those discussed in this article. Here are some other types of same-day loans.
Payday loans
Payday loans are small, short-term loans that are typically repaid with your next paycheck. Payday lenders are unlikely to consider your credit scores or ability to repay the loan, which can help you get approved even if your credit is less than ideal. However, getting it may be costly.
According to the Consumer Financial Protection Bureau, payday loan fees can result in APRs of nearly 400%.
If you cannot repay the initial loan on time, the debt may be rolled into a new payday loan. This new loan may have higher fees, increasing your payday debt.
Title loans
A title loan is another low-dollar, high-interest loan option that could provide you with money the same day you apply. You can secure a title loan by using your vehicle as collateral. In exchange for a small loan, the lender takes your car title. When you repay the loan, you get your title back.
According to the Consumer Financial Protection Bureau, the average title loan costs around $700 and has an APR reaching 300%. 20% of borrowers who take out title loans lose their cars to the lender, and more than half of those who do so become repeat borrowers.
Pawn shop loans
Taking valuables to a pawn shop is another quick way to get cash. The store gives you an agreed-upon sum of money in exchange for the item, usually less than the item’s actual value. You can get your valuables back if you pay back the loan amount plus interest by the due date. Without payment, the pawn shop may sell your item to recoup its costs.
Pawn shop loans have high-interest rates that can result in up to 240% APRs.
What Are Some Other Options for Same-Day Loans?
Even though same-day loans can provide you with cash when needed, they usually benefit the lender more than the borrower. It’s a good idea to weigh your options before deciding on a same-day loan.
Credit cards
Although it may not be ideal, charging expenses to your credit card or obtaining a cash advance may be less expensive than a same-day loan.
Currently, the average APR for credit cards is around 15%. A higher APR (often 25% or higher) is also likely if you use your credit card to obtain cash. Even so, it may be less expensive than same-day loans, which can have triple-digit interest rates.
Friends and family
Although you may be hesitant, if you find yourself in a jam and know someone who can help, this is another option to consider. Before accepting a loan from a loved one, make sure you and they both understand the interest rate and repayment terms. While a loan from family or friends may help with your financial recovery, it’s critical not to let the relationship suffer.
Payday alternative loans
An alternative payday loan, which typically has much lower fees and APRs than a traditional payday loan, may be available for you to apply for. There are two types of PALs, with slightly different conditions and requirements.
To be eligible, you must be a credit union member providing the loan. Loans of up to $2,000 are possible if approved.
When applying for an alternative payday loan, be aware that you must provide evidence that you meet some basic financial requirements, such as explaining why you need the money or not having recently filed for bankruptcy.
How Did We Select These Loans?
We investigated over a dozen different same-day loan options. Interest rates, eligibility requirements, fee schedules, loan amounts, repayment terms, and the availability of prequalification applications were among the factors we considered when making our decisions.
Featured Image: Pexels © Karolina Grabowska
