Facts vs Myths
Same day loans have become popular for many reasons. First, same day loans, as the term suggests, offers an opportunity for people in need of money to get cash fast. In addition, because same day loans are unsecured loans, you can still obtain same day loans even if you have bad credit and even if you have no asset to show as collateral. These and many more make same day loans above other types of borrowing opportunities. However, despite the benefits that same day loans offer, some people still see same day loans in a negative light. There are also rumors circulating about same day loans as a source of funds.
Myth # 1 : Same day loans are extortionate with high interest rates.
The interest rates that online lenders charge for same day loans may be a little higher than in regular loans. However, if you think about the benefits that same day loans offer, the interest rates are actually pretty reasonable. In fact, since they are unsecured loans, you don’t have to spend money to get your credit report or fix your bad credit rating. And since same day loans can be obtained online, you won’t have to take a leave from your work and go to the lender’s office like what you will have to do when applying for a loan in banks, just to get your loan application processed. Remember, being away from work for a whole day means money lost, too, not to mention the gas that you will waste to get to the lender’s office.
Myth # 2: Same day loans are scams.
Because same day loans offer fast solutions to financial problems, many people think that they are scams. But fact is that this is not all true. There may be scam websites like in other industries, but same day loans are not a scam at all if you deal with an accredited and reputable lender. The trick is to check the lender’s licenses and accreditation, and check it with your state. Another way to know whether the site is legitimate or not is to read genuine reviews about the company. This should help you avoid shady online lenders.
Myth #3: Same day loans will only put you in the debt cycle.
Some people also think that once you get into this thing, it will be hard for you to get out of the debt cycle. This is not true at all. If anything, using of credit cards is more designed toward putting you in the debt cycle than same day loans. If you don’t watch your expenditures using your credit card and don’t pay how much you owe on the due date, you will definitely keep a debt alive and the cycle won’t stop until you resist the temptation of using your card. With same day loans, there is not as much temptation since all you have is the money you need.
Myth #4: Everybody with a stable source of income can get same day loans.
Although the most important requirement to obtaining same day loans is a proof of active employment, this does not mean that all people with income or stable source of income can get approval on their loan application. To ensure approval, make sure that you can also present all the other basic requirements, such as proof of address and identity, citizenship and age. Most importantly, apply for an amount that you can pay within the online lender’s term.