Cash strapped Americans often face a serious dilemma when they need funds to meet an urgent expense that cannot be put off. Their bank accounts may only have funds when payday rolls by and their salary check is credited. However, it may not be possible to postpone payment until then.
Many Americans in similar circumstances believe that the only recourse left to them is to opt for an exorbitantly high interest rate loan. But, when the borrower has a bad credit score, it may be impossible for him to get even such loans. The best option is to go for same day payday loans.
Same Day Payday Loans Vs Regular Loans
As the name suggests, same day payday loans are processed quickly, with the funds made available to you within hours of your application. This is a great advantage when you need funds urgently. Regular loans may take even weeks for the approval process to be completed and the funds actually made available to you. In a financial emergency, you can ill afford to wait this long for the funds.
Quick processing of same day payday loans is enabled because of many reasons. These loans are designed with bad credit borrowers in mind. The lender of these loans already knows that the borrowers are high risk individuals and this aspect is factored into the total loan cost right at the outset.
The lender of a regular loan undertakes a complete and comprehensive check of your credit history before he decides to approve your loan application.
This detailed examination tells him the degree of risk you pose as a borrower. It is based on this examination that he decides the terms and cost of the loan offered. A detailed and time consuming credit check is a process that cannot be eliminated when you opt for a regular loan.
You don’t have to personally visit the lender for submission of verification documents to qualify for the loan. Even if he does need some verification, such as proof of employment or salary, you can email them or fax them to him.
This also reduces the total time taken for processing same day payday loans. It is impossible to finalize a regular loan without making a visit to the lender because of the many formalities that need to be completed, verification documents that are to be submitted and paperwork that is involved in this loan.
As same day payday loans are typically very short term ones, used to tide you over until payday, the loan is well within manageable levels even for the most cash trapped borrower. On payday, the loan is automatically debited from your salary account. This way, there is no chance of a missed payment and consequent penalty, unless there is a prior lien on your paycheck.