Same Day Auto Loans: Pros and Cons
Same day auto loans, like every other type of loans, have their pros and cons. These quick loans can be great in a pinch, but a more patient searcher will likely be able to score better rates with a different type of loan. If you're considering same day cash loans to help pay for a car, you'll want to be well informed of these pros and cons before making your decision.
Pro: Handy in a Tight Spot
Same day auto loans are meant to help you out of tight situations where you need money right away. These types of loans can be lifesavers when quick money is needed to pay a bill and avoid a bad mark on your credit or even repossession. When you don't have anywhere else to go, same day loans essentially provide a cash advance which you can use to pay off urgent bills.
Pro: No Credit Check
Same day loans generally do not require a credit check, which can be a good thing for anyone with less than excellent credit. This also helps to save time, and means that you won't have to explain any poor marks on your record. Even better, these types of loans can actually help to build good credit, so long as you pay them back on time.
Pro: Fewer Requirements
There are hardly any requirements to get a same day loan: all you need is proof of employment and a checking account. You won't be running around trying to find necessary information or worrying that you won't be able to find a loan, because these simple requirements mean that just about anybody can find the quick money they need.
Con: Small Amounts
Same day loans are not meant to be used to actually finance cars. Their intended use is more to make a payment on a loan which has already been financed. If you need more than $1000, you aren't likely to have any luck finding a same day loan. Generally, same day loan amounts will be less than $500 - enough for a car payment, but not to finance a car.
Con: High Rates
Providing same day loans is fairly risky to the lender, and these sorts of loans also suggest that the person receiving the money is somewhat desperate. Given these two factors, it's no surprise that same day loans come with very high interest rates. It's possible to compare rates and find the best deal you can, of course, but even that is likely to be quite expensive in the long run.
Con: Difficult to Find
Most banks and credit unions do not provide same day car loans, so you'll have to look to other sources to help. The Internet can be helpful, or else contact your car dealership and explain your situation. Dealerships want you to keep your car and make payments on it, so they will be willing to point you towards good lenders.
Same day car loans are helpful under certain circumstances. They should not ever be used to finance a car, but can be of great help when you need to make a payment on one.