Monday, June 21, 2010

Can You Pay Back a Same Day Loan the Same Day?

Same day loans are one of the most exciting and popular innovations in the personal finance market today. They are a world apart from many traditional loans which have low approval rates, mountains of paperwork and often a long wait for your money. When people need cash, they often need it quickly, so the fact that it is possible to receive funds the very same day can feel like an absolute life-saver. But how much flexibility is there within the terms of same day loans? If your circumstances change and you want to pay back your new loan on the same day, is that allowed?
The answer, in reality lies within the terms of the same day loan company you choose, but many take a similar approach. With some companies that use sliding scales of repayment, there is no financial penalty for repaying early, but most will require that you hold the loan for a minimum of one day. You may save money on interest or get a partial refund by paying early, but it may be the case that if you try to repay within 24 hours then you will be restricted from taking out another loan for a period of time as the loans are not designed for immediate repayment.
Some same day loans have a clearly fixed repayment date and a sum to pay that is a fixed amount of interest. As such, their terms may mean that there is no advantage at all in repaying that loan earlier than agreed, so read your contract carefully.
Other same day loans will not allow you to pay back immediately, or at least will not facilitate it as you might have to repay the loan through a different route, which may take several days to process. Alternatively, for example with certain text-based loans, you may be able to repay at will. You simply need to be aware of all the terms regarding repayment before you agree to the loan as they will all vary depending on the lender.
One thing to bear in mind when looking into paying back a loan on the same day is whether this really is the best possible route. After all, you will have already signed up to paying some interest and possibly transfer fees, which you will still have to cover when repaying. Also, you need to be sure that you won't need more money in a few days' time, otherwise the first lot of interest will have been an unnecessary expense. This is often particularly costly if it is a loan where you receive the funds the same day, but pay back the loan over several months. Far better to plan ahead, pick a loan provider with care and take out a loan for precisely the period of time that will genuinely help you.
In short, there are a number of factors to consider when thinking about paying a same day loan back as early as the same day itself. Firstly, read any online or emailed information, including contracts, SECCI (Standard European Consumer Credit Information), Adequate Explanations and FAQs. Next, decide whether immediate repayment of the loan will actually improve your financial situation - it may not. Take into account interest and terms around early repayment and decide whether holding off until the due date might be a better option. Finally, pay back the loan in a timely manner and make sure you keep the lender in the picture at all times, whenever you repay - that is the secret to enjoying the best of the same day loans on the market.

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