Your brakes need urgent replacement. You’ve fallen ill and need expensive medication. Your child needs the deposit for a school trip earlier than you expected. 

Did you wince? That’s probably because, like most people, you may have been slapped by the bad-timing fairy once, twice, or maybe many times in life. 

When you need an unsecured loan in an instant, traditional banks usually can't help due to their lengthy application process. And if you have bad credit, banks make it even harder to get approved.

Some people with an urgent need for cash turn to payday lenders. Payday lenders like to aggressively advertise same-day funds to feed on your sheer urgency. And then there's pawn shop lenders and title loan companies that require valuable collateral before they offer a short-term loan. It's important to remember that not all same-day lenders are payday lenders, title loan companies, or pawnbrokers. There are other lenders you can turn to when you need cash in a flash. 

But while many traditional same-day lenders were formed to take advantage of your urgent need for funds, there are trustworthy online lenders starting to emerge with the technology to approve and deposit to your account within 24 hours. With reasonable rates on installment loans and credit-building solutions, these alternative lenders can provide quick funds when you need it without trapping you in a race against time or cycle of debt.

Read more: Unsecured Personal Loans For Bad Credit With Instant Decision: Fact Or Fiction?

Where Can I Get a Same Day Loan? 

Same-day loans are short-term, instant loans that you receive within 24 hours of applying for them. There are four types of same-day loans in Canada: 

  • Payday loans: A payday loan is a short-term loan, and you have to repay when your next pay cycle comes around again. Depending on what province you’re in, the APR on a payday loan can be as high as 599%! Payday loans prey on your need for fast cash and should be avoided at all costs. 
  • Title loans: Title loans are high-interest loans that use your car as collateral for the cash. The lender takes your car title in exchange for your cash loan, and when you repay the loan, you get your title back. Although a title loan usually has a lower interest rate than a payday loan, it is still expensive compared to other types of credit and is extremely risky as failure to repay means losing your vehicle. 
  • Pawnbroker loans: A pawnbroker offers cash for collateral (an item of value such as jewelry or electronic device). If you cannot fully repay the loan, you risk losing the item of value. This type of loan is also a high risk to the customer and comes with high interest.
  • Installment loans: With many of the same-day lenders mentioned above, the price of speed is very high interest or the risk of losing something valuable if you can’t repay. Installment loans are a safer option. In contrast to payday loans, installment loans come with much lower interest rates. Responsible lenders in this space consider your monthly budget and your long term financial goals. With an installment loan, you borrow a specific amount and pay it back in monthly payments over a time period of your choosing. Many installment lenders work with bad credit customers too.

Is a Same-Day Loan Really Same Day?

Technically, yes, but where you get them and what time of day you apply (in one instance) is what distinguishes their “same-dayness”. 

Retail location: If you walk into a same-day lender’s brick-and-mortar store, you’ll walk out with actual cash money in hand. It’s that simple. However, some of these retailers offer direct deposit, and in that case, it’ll take a bit longer before you can start spending that money. 

Online: The online route is becoming increasingly popular for three main reasons: speed, relative anonymity (nobody has to see you walk into a store for money), and ease. 

But with some lenders, if you apply for a same-day loan online, it can be tricky. Many online lenders promise the cash advance within 24 hours (which can technically be the same day). But when it comes to an automated payment, it can take time to clear. All lenders are technically at the mercy of the banks of which they’re sending the funds to. For example, some banks have clearing times of 2 pm. It means that if the bank receives your application before 2 pm, you’ll usually receive the funds within the next 24 hours. If the bank receives your application after 2 pm, it could take two days before the money is deposited to your bank account. 

How long it takes a lender to process your application is also a factor. You may apply at 9 am, for example, but if the lender doesn’t clear your application until after 2 pm, then you may have to wait an extra day to receive the funds. Remember to ask about when you can expect to receive the money when you apply for a "same-day" loan.

Fresh Start Finance is one online lender that has the infrastructure in place to facilitate same-day loan requests with a swift e-transfer option. With quick approval, fast deposit, minimal paperwork, excellent customer service, and reasonable rates on installment loans, we’re set up to accommodate your urgent need for cash.

Can I Get a Same-Day Loan With No Credit Check?

Same-day loans with no credit check is possible. However, you’ll probably be subjected to high APR and a short repayment timeline. If a lender doesn’t check credit at all, it’s a cause for concern. Also, if a lender doesn’t ask for your income, run (or click) away and never look back.

Can I Get a Same-Day Loan With Bad Credit?

Most payday, title loan, and pawnshop lenders will lend to you if you have bad credit, but these loans often come at a high price to the customer. Customers with low credit scores that need a loan within 24 hours have other options. Fresh Start Finance is an online lender that you can trust. We work fast and responsibly to get customers facing all types of credit situations approved in as little as 24 hours.

How to Start Your Emergency Fund

If you’re looking for an instant loan, you may also be wondering how you can avoid being cash-strapped again. One of the solutions is to start an emergency fund. Here are a few tips to get it started:

  • Cut out monthly subscriptions that you don’t really use. Do you really need Amazon Pantry, that snack box, or anything else that is technically a luxury item and doesn’t actually save you any money? Conversely, are there any subscription boxes that would save you money on things you buy regularly, eg: Dollar Shave Club? Lastly, are there any subscriptions you’re paying for without even knowing it? Lots of fashion subs work this way. Check your credit card statements and cancel what you don’t need!
  • Shop at discount stores. Some grocers are incredibly expensive. If you’re shopping at Whole Foods or Longo’s, maybe consider Food Basics or No Frills for a while. Pocket your savings, however much or little they are. 
  • Call your creditors and negotiate a lower interest rate. If your credit is decent, they may be willing. This could shave off hundreds of dollars a year, depending on your debt load.
  • Talk to your service providers. Your phone, internet, and cable providers don’t want to lose you as a customer, especially if you’ve been with them for a long time. Explain your situation and see what they can do for you. 
  • Sell or return something. Clothes at a consignment shop. Electronics you don’t use. Return a purchase you don’t actually need. With the rise of popular minimalism, it’s important to realize we really don’t always need the next best thing.
  • Go on a spending freeze. Challenge yourself to stop spending money unless it’s for rent, food, utilities, and other essentials like gas. You’d be surprised how much you can save in even one month.

Need an Instant Loan?

Fresh Start Finance is here to help. We offer the hassle-free simplicity of an online application. It takes just 3 minutes to fill out, and you can have money deposited in your bank account within a day!