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Same Day Loans: Facts And Warnings

Miranda Crace6 minute read
UPDATED: June 02, 2024


In a financial emergency, you may not be able to wait to get approved for a loan and might need cash right then and there. Looking for emergency same-day loans, however, can get you into dangerous financial territory, and you could end up paying more than you bargained for in the long run.

This article will inform you of different types of same-day loans, how they work and what to watch out for when seeking this financing option.

Can I Get A Loan The Same Day I Apply?

Same-day loans, or emergency loans, are short-term loans for typically lower amounts that can be approved and disbursed all in the same day. These types of loans can vary in terms and quality depending on the lender.

While same-day loans can be convenient, they often come with lending fees and high interest rates. This may not be the case with every loan, so you should research the lender you want to work with very carefully before making a commitment.

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Types Of Same-Day Loans

Let’s take a look at an overview of different types of same-day loans.

Payday Loans

One of the more popular options when it comes to same-day loans, payday loans are named so because the loan’s repayment is typically due when the borrower receives their next paycheck from their employer, about 2 weeks out from approval.

Payday loans can be flexible in that they may not require a credit check, but that convenience can be outweighed by high fees and annual percentage rates (APR). Lending fees for payday loans can be $10 – $30 for every $100 borrowed, putting the loan’s APR at nearly 400%. If you can’t repay the loan in time and choose to roll it over, you’ll be charged an additional lending fee for every rollover, and you risk falling into a debt cycle.

Car Title Loans

Title loans, like payday loans, may not require a credit check and can disburse your funds immediately. The catch, however, is that a title lender will require you to put your vehicle up as collateral, and can take it if you default on the loan.

Repayment for a title loan typically lasts 15 – 30 days, with the option to roll it over. Financing fees can be about 25% per month, though, making the APR for this loan type around 300%. That combined with the possibility of losing your vehicle can make title loans risky endeavors.

Pawn Shop Loans

While not traditional lending, per se, you can acquire an instant loan from a pawn shop by exchanging a valuable item, such as jewelry, as collateral – no credit check required. Your loan amount will depend on the value of the item, and the pawnbroker will hold onto the item until you can repay the loan. Loan terms and interest rates will vary depending on the pawn shop, but the APR on a loan can be more than 200%. Not only that, but failing to keep up with payments can cost you your item.

Credit Card Cash Advances

With a credit card cash advance, you can use your card to borrow immediate cash against your credit line to pay back later. There’s no credit check or application process, and you can withdraw your money from almost any ATM. Your card issuer, though, may charge an upfront fee of 3% – 5% of the amount borrowed, and cash advances can have higher APRs and interest rates than with a regular card purchase. Additionally, your cash advance can start accruing interest as soon as you make the withdrawal.

How To Get A Same-Day Loan

Like most loans, finding a same-day loan that works for you starts with shopping around for different lenders that offer them. The application process can differ depending on your lender and type of loan, so make sure you know what documents and paperwork you need before you apply. Typically, a loan will require you to provide personal information, personal identification, proof of income and other information specific to the type of loan you’re getting.

Where To Get A Same-Day Loan

Same-day loans can be found either in physical locations or online. Credit card cash advances can be done at ATMs or in traditional banks, and pawn shop loans at stores that offer them. Options for online same-day loans include payday and title loans, but be careful that you’re borrowing from a reputable lender.

Some credit unions may even be able to offer same-day funding, or at least faster approval and processing time.

Same-Day Loan Approval Requirements

While the application process can be different between lenders, there are some basic requirements that every borrower should meet.

  • You’re at least 18 years-old, or the legal age in your state.
  • You can provide proof of your income.
  • You can provide personal identification, like a driver’s license or photo ID.
  • You can provide contact information, such as your address, phone number and email address.
  • You have an active bank account that can receive direct deposits.

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Should You Get A Same-Day Loan?

Same-day loans can be convenient for those who need immediate cash or have bad credit, but those benefits can come with financial drawbacks as well. Review the pros and cons of a same-day loan before deciding it’s the right fit for you.


  • Same-day loans can provide immediate approval and funds.
  • Many same-day loans don’t require a credit check.
  • The application processes can be fast and simple.


  • Same-day loans typically have high interest rates and APRs.
  • Same-day lenders can charge high processing and rollover fees.
  • Shorter repayment terms can be hard to pay back without rolling the loan over.

Alternatives To Same-Day Loans

If you find that a same-day loan wouldn’t work for you, take a look at these other options available to you. You may not get your loan as immediately, but the rates and terms may be a better fit overall.

Personal Loan

A personal loan can be found online or at a traditional bank, and can be used for almost anything the borrower needs it for. Most personal loans are unsecured and don’t require collateral, so your approval will depend largely on your credit score.

Getting a personal loan involves a relatively straightforward application process, which includes prequalification along with a soft and hard credit check. The approval and disbursal process typically takes 1 – 7 business days, and your funds should deposit right into your bank account.

Some personal loan providers, like Rocket Loans℠, can even offer same-day funding in certain cases, so you may be able to get your funds on the same day after all.*

0% APR Credit Card

Some credit card companies offer a 0% APR introductory period when you sign up for a new card. You can use your new card as a loan and then make interest-free payments toward the balance for about 12 – 18 months. If you can pay off the full balance in that time, you can save yourself in interest payments. Otherwise, you’ll be hit with high interest charges as soon as the period ends.

Home Equity Loan Or HELOC

A home equity loan, like a personal loan, gives you a lump sum of cash that you can use for large purchases or other expenses. The biggest difference is that you’re borrowing against your home’s equity, and in doing so using your home as collateral for the loan. If you can’t keep up with your monthly payments or default, your lender can take your home through the foreclosure process.

Similarly, a home equity line of credit (HELOC) borrows against your home’s equity in the form of a credit line you can borrow from and repay over time. This type of loan also uses your home as collateral, and carries the same risk of losing your home if you can’t make your payments.

Borrow From Others

If you have friends or family who can spare the expense, consider asking them for a loan. You can set up your own rates and terms, and draw up a contract if necessary. This way you can avoid a complex approval process, and possibly work with lower rates and APR than with a traditional lender. However, if you find you can’t repay your friend or family member, you can risk straining that personal relationship.

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Final Thoughts

Financial emergencies can come out of nowhere, and same-day loans can be a fast and convenient way out of a bind. High interest rates and lender fees can add up, though, and shorter loan terms may prove difficult to keep up with. Consider all of your loan options carefully, and make sure any same-day loan you choose is manageable within your financial situation.

If you’d rather pursue a personal loan, which could be a safer financial option than a same-day loan, you can get started today with Rocket Loans and see what rates and terms you prequalify for.

*Same-day funding is available for clients completing the loan process and signing the Promissory Note by 1:00 p.m. ET on a business day. Also note, the ACH credit will be submitted to your bank the same business day. This may result in same day funding, but results may vary, and your bank may have rules that limit our ability to credit your account. We are not responsible for delays that may occur due to an incorrect routing number, an incorrect account number or errors of your financial institution.

Miranda Crace

Miranda Crace is a Senior Section Editor for the Rocket Companies, bringing a wealth of knowledge about mortgages, personal finance, real estate, and personal loans for over 10 years.