Although it is advisable to save some cash for emergencies, sometimes it may become challenging to make ends meet. If you are in such a situation, it is possible that you have already applied for a same day loan or perhaps you are considering taking one. A same day loan is a type of short-term borrowing where the lender extends a high interest rate based on your credit history in exchange for fast cash. Same day loans have a reputation of hidden provisions that require the borrower to pay for extra charges. Institutions that provide same day loans make it impossible for borrowers to pay back what they owe. Due to these situations, it is vital to understand the terms and conditions before taking a same day loan. Read on to discover how to read the terms of a same day loan.
Know your Loan Rights
Go through the terms and conditions carefully. Know the amount of money you will get, repayment period, and the interest rate. Determine whether it is convenient, or you may consider visiting another lender before making a decision. You should also make a plan so that you can repay the money as soon as possible.
Cost of the Loan
Same day loans are known for their high-interest rates, which make it impossible to repay within a month. The law demands that interest rates should range between 30% and 40%. However, most institutions that offer same day loans do not follow these rules. Instead, they offer flat interest rates. For instance, you can get $20 per $100 for seven days. This interest rate sounds good, but if you do not pay on time, the $20 starts to multiply. After three weeks, you will end up paying $160 instead of $120. Check the terms and conditions for this interest rate and calculate the cost of your loan before applying for one.
Paying attention to time is a critical factor when it comes to same day loans. Ideally, you are borrowing money until your next payday. Your time table depends on when you will receive your next payment. Know precisely when you must repay the loan so that you can make a good plan on how to keep your agreement.
Some institutions have automated systems called continuous payment authority. With this option, you permit the lender to apply an agreed amount from your debit card automatically. For others, you have to make a manual repayment. Most institutions will allow you to make regular installments. Instead of paying the whole amount at the end of the month, the institutions makes the repayment process more flexible. Make sure you go through the lender’s terms and conditions to know how you will repay your loan.
The best thing about same day loans is that you can have your money within minutes. The institutions also have an easy application process. If you are looking for some emergency funds, consider visiting same day loans.