What Are the Different Types of Same-Day Loans?

What Are the Different Types of Same-Day Loans?

A same-day loan is a type of loan that can get you cash right away, typically at a high cost. It can be helpful if you have a financial emergency and need cash quickly. Knowing the differences between the types of same-day loans can help you determine the right fit for your needs.

What Is a Same-Day Loan?

A same-day loan is a loan that is available to be used immediately after being approved for it. These loans are generally more expensive than other types of loans.

A same-day payday loan could have an annual percentage rate (APR) of 400 percent. In comparison, the average APR for a 24-month personal loan is 9.58 percent, and the average APR on credit cards assessed interest is 16.3 percent.

Types of Same-Day Loans

Here are four types of same-day loans you can choose from:

  • Payday Loans

If you’re considering a payday loan, understand the fees and terms before applying. Payday loans typically have high-interest rates and fees, making them difficult to repay.

Payday loans are a type of loan that allows you to get money fast without a credit check. However, these loans come with high-interest rates and fees. Additionally, borrowers often re-borrow payday loans, which can lead to a cycle of debt. Proceed with caution or avoid this loan type if you can.

  • Credit Card Cash Advance

A cash advance is a way to get money fast by using your credit card. You can get cash at a bank or credit union or even at an ATM if you have a card PIN.

You’re usually charged an upfront fee when you take out a cash advance. This fee is typically five percent of your borrowing, with a minimum of $10. Additionally, the interest rate on cash advances is usually higher than regular credit card purchases. 

For example, the purchase APR could be as low as 14.99 percent, while the cash advance rate could be as high as 24.99 percent. With cash advances, there is no grace period where you can avoid paying interest. Instead, interest starts accruing immediately.

  • Title Loans

A title loan is a loan where you use your car as collateral. The lender will hold on to your car title and let you borrow money. You can still drive your car around while you are paying back the loan, but the lender may be able to take your car if you default on the loan.

The loan may not require a credit check, and the money can be disbursed quickly, but the lender may charge processing fees, and the typical financing fee is 25 percent per month. The APR for a title loan can be as high as 300 percent. If you can’t repay the loan, you could lose your car and leading to job loss.

  • Pawnshop Loans

Pawnshop loans are a type of collateral loan where you offer up an item of value, such as jewelry or electronics, in exchange for a cash loan. The pawnshop holds onto the item until the debt is repaid, at which point you can reclaim your belongings.

The loan amount and interest rate will vary depending on the type of item you use for collateral and the pawnshop you use.

One Final Note

Same-day loans can be a convenient and fast way to get your money. However, it is important to remember that they come with risks. Make sure you understand the terms of your loan and only borrow what you can afford to repay. Be sure to do your research before signing up for any of the four loans.

King of Kash has provided affordable, low-risk personal loans with no credit for almost 40 years and is one of the fastest-growing money lenders. We are dedicated to helping our customers and loan applicants meet their financial obligations with fast, low-cost signature loans that don’t require a traditional credit check and zero collateral down. If you need online loans, get in touch with us today!