Unforeseen expenses can crop up at any time. Most of the time, people do not have sufficient savings to fall back on when they are caught off guard by the unexpected. Due to the urgent nature of the expense, you are compelled to rush to online lenders. While there are various types of loan products on the market, most of them involve paperwork and other formalities. Having come across an emergency, it is vital to get an immediate injection of cash. Here comes the role of same day loans.

They have been designed to provide you with instant financial help when your savings have fallen short of cash. Mostly, the funds are transferred to your account within a few hours. Same day loans generally target subprime borrowers, so despite a poor credit history, you are eligible to borrow money.

Convenience costs you a lot of money. Though lenders will not disapprove you due to your bad credit rating, they will charge high interest rates. The risk of default is quite high on the part of the lender that cannot be offset, and hence, they mitigate the risk involved in lending you money by charging high interest rates.

Same day loan benefits

Here are the benefits you are supposed to entitle by using poor credit loans:

·        They offer convenience

One of the most significant benefits of same day loans in the UK is that they are convenient to apply. No paperwork is required. In fact, you do not need to meet the lender in person. Application forms can be duly filled and submitted online. Most lenders use a comprehensive form that requires you to fill in income details.

Your financial details are a determinant of how much money you will be lent. As these loans are aimed at subprime borrowers, lenders hardly bother to run credit checks, especially if the borrowing sum is not more than £500.

It is easy for lenders to make a lending decision based on the details you provide. No paperwork is required, which speeds up the process. The screening takes a couple of hours, and then funds are transferred directly to your account.

·        Bad credit borrowers can also apply for these loans

When it comes to borrowing money, your credit rating plays an intrinsic role. No lender can lend you money without the perusal of your credit report, and if they find your past payment record abysmal, they will either turn you down or charge a very high rate of interest.

But these problems cannot be experienced when you need money to meet emergencies. Lenders accept applications for same day loans from borrowers with less-than-perfect credit history. Though interest rates will be quite high, you will be able to meet your urgent expenses without any hassle.

·        Small repayment terms

Another benefit of same day loans is that they come with a small repayment term. The maximum loan amount is available up to £1,000. However, it does not insinuate that a lender will be disposed to lend you that much sum. It depends on your needs, repaying capacity and how worse your credit score is. Of course, borrowers with a CCJ will not be approved for this much money.

As the borrowing amount is quite often small, they are required to be paid back in fell one swoop on the due date, and the repayment length is not more than a month. If any lender arranges an instalment repayment plan, the money will be paid in two or three months.

You do not have to be tied to long-term payment plans, unlike mortgages. There is no fear of an unexpected change in your financial behaviour that may put you behind on payments. Once the whole debt is discharged, you are absolutely free. You do not need to be wary of having sufficient funds to pay a debt payment.

·        Tailored deals

Lenders generally provide tailored solutions so you do not struggle to make payments. While these loans are paid back in a lump sum, some lenders may provide you with instalment payment plans. This will enable you to pay down the debt in fixed instalments.

Lenders will offer you a repayment plan based on your financial condition. If they suspect that you will not be able to make the payment outright while meeting your regular expenses, they will put you on an instalment plan to make repayments easier for you.

·        You will get money at transparent terms

Another benefit of same day bad credit loans from a direct lender is that you will be provided money at transparent terms and conditions. Ethical and registered lenders do not charge any hidden fees. All terms and conditions are disclosed in the contract. However, you should carefully read all terms and conditions before signing the contract.

Do not throw caution to the wind

As same day loans are easily available, you might be tempted to apply for them during financial emergencies. Bear in mind that they come with high interest rates. Chances are you fall behind on payments. Once you miss a payment, you will end up rolling over the loan. As a result, late payment charges and interest penalties will be imposed, which quickly increase the total amount of the debt.

Although lenders carefully check your repaying capacity before approving your application, you should also peruse how much money you can afford to pay back. Borrowing beyond affordability will make it worse for you down the line.

Some lenders promise to provide you with an instalment plan, but they expect you to pay down the money every week, which means the repayment length is not more than a month. You should consider other alternatives such as a credit card instead of same day loans. You have a chance to settle your credit card bill without interest within the grace period.

The final statement

Same day loans certainly provide innumerable benefits, and one of the significant benefit is that they are readily available during emergencies, but do not throw caution to the wind at the time of using these loans.