7 Things to Look For When Applying for Next Day Loans

Do you sometimes need a little extra money to get by?

You’re not alone. In fact, a whopping 60% of Americans are living paycheck to paycheck. 

If you have an unexpected expense come up and need quick money, next day loans may be your best bet. However, not all of these loans are created equal. It’s important to know what to look for before you apply.

What should you look for and consider before applying for next day loans? Keep reading to find out!

1. What Are the Minimum and Maximum Amounts You Can Borrow?

Before you get serious about next day loans, you need to do your homework. For example, you need to look into whether the types of loans you are checking out have minimum or maximum amounts.

For example, some lenders may require you to borrow at least a minimum amount. Most of the time, this isn’t a problem. But if you only need to borrow a small amount of money, then you don’t need to get stuck borrowing more than you need.

It’s also important to verify the maximum amount you can borrow. In some cases, you may have larger expenses you must deal with. In that case, it’s important to make sure you will be able to borrow enough from this lender.

2. How Long Do You Have to Repay It?

Another part of “the fine print” you need to check is how long you have to pay a loan back. For example, there are many types of loans created for short-term finance. And some of these loans need to be paid back sooner rather than later.

As an example, the traditional payday loan requires you to pay it back within 30 days. Hence the name: you are basically expected to pay the loan back by the time you get your next paycheck.

However, there are some next-day loans that offer variable repayment periods. At Fast Loan Direct, we let you choose between loans that you pay back within three months all the way up to loans you must pay back within 72 months. This gives you the flexibility you deserve when it comes to getting the money you need.

3. What Is the Interest Rate?

It’s important to get answers to all of the different questions we have touched on so far. However, the most important thing you need to do is look into what the next day loan rates are.

The exact rates you are offered may depend on your credit score (more on this later). Sometimes, though, the rates depend on what type of loan you take out. Payday loans that need to be paid back in the next month typically have very high interest rates while loans that need to be paid back over a period of many months or years will have lower rates.

Discovering this information is important because it determines how much you’ll be paying back. In some cases, a high interest rate may make you think twice about taking out a loan.

4. Are There Other Fees?

There are few words that consumers dread more than “hidden fees.” And when it comes to any loans that you take out, it’s important to discover if they have any hidden fees tacked on.

Such fees may include things like origination fees, underwriting fees, service fees, and many more. These fees may ultimately make borrowing money costlier than you were expecting.

Perhaps the most important fee you need to check on is whether the loan has a prepayment penalty attached to it. If so, you could end up getting punished for paying the loan off early. And taking out loans with no prepayment penalties effectively gives you more flexibility as a borrower.

5. Does Your Credit Score Matter?

Earlier, we touched on how your credit score can affect your interest rates. This is just one reason why you should check to see whether or not the lender checks your credit or not.

If you have bad credit, then lenders who don’t perform a credit check may be a blessing. With these lenders, you can get the money you need without worrying about getting denied based on credit. However, it’s worth noting that lenders that don’t require credit checks may offer loans with very high interest rates.

If the lender does require a credit check, you may get better rates with better credit. And it’s never too late to sign up for credit monitoring and work on improving your credit from month to month so you’ll have an easier time securing money.

6. Does the Loan Require Collateral?

There is one more potential downside to loans that don’t require credit checks. In some cases, these loans may require you to put something up for collateral in order to borrow money.

Such loans are known as secured loans. An unsecured loan is one that you take out without having to put forward any collateral. Secured loans, meanwhile, often rely on a car, house, or other valuable possession being used as collateral.

If you ever take out a loan requiring collateral, be careful. If you have financial difficulty and can’t make your payments, you may end up losing collateral that you can’t afford to lose.

7. Do You Have Time to Consider Other Options?

The last thing we recommend you consider before applying for next day loans is this: do you have enough time to consider multiple options?

This is important because many people turn to payday loans when they face an emergency. Those loans may have high interest rates and annoying fees, but borrowers put up with them because they need the money sooner rather than later.

As long as you have extra time, you can give yourself extra options. And this can help you discover the perfect lender for your needs.

Get the Best Next Day Loans Today!

Now you know what to look for when applying for next day loans. But do you know where you can find a lender that offers great interest rates and flexible repayment terms?

Here at Fast Loan Direct, we specialize in helping you when you need it the most. To discover what our next day loans can do for you, come and request a quote today!