How Do Direct Deposit Same-Day Loans Work?

iQuanti: When you need quick access to money, like for an emergency car repair or an urgent bill, sometimes waiting one more day just isn’t an option. If you need money today, a direct deposit loan might be what you’re looking for. Here’s what you need to know about direct deposit same-day loans to decide whether they’re the right choice for your needs.
What is a Direct Deposit Loan?
A direct deposit loan allows you to receive a direct transfer of funds to your bank account once approved. Of course, as with other loans, you’ll need to apply and meet eligibility criteria first. But the major benefit of these loans is that the funds are often released to you immediately. And that means you can spend them as you need without waiting days or weeks for the cash to clear.
How to Take Out a Direct Deposit Loan
1. Decide What Type of Loan You Want
When it comes to direct deposit loans, there are several types to choose from based on your income, desired repayment window, and ability to provide collateral. Cash advances, installment loans, and title loans are direct deposit loan options you can consider to get money fast.
With a cash advance, you’ll need to provide proof of stable income and will need to repay it in a shorter time frame, often two to four weeks. An installment loan, on the other hand, may be a good option if you need a larger sum of money. These loans come with fixed monthly payments, so you know exactly when the loan will need to be paid in full. And if you own a car and are willing to use its title as collateral, you may consider getting a title loan.
2. Research Lenders
There are many reputable lenders out there, but they stand alongside some scam companies that want to take your money. Be wary of any lender that encourages you to send money upfront in exchange for a loan, a website that’s not secure or lacks a physical address, or lenders that won’t disclose their fees. 
As you review lenders, it’s important to compare key differences in their loan offerings. That means looking at differences in interest rates, fees, and eligibility requirements. Shopping around and reviewing these key components can help you find the right lender for your needs.
3. Submit an Application
Many applications for direct deposit loans can be completed in a matter of minutes online. Keep in mind that applications will require your basic personal information and may also ask for your checking account deposit information, so be sure to have your account and routing number handy.
4. Wait for Approval
Many lenders now offer instant or quick decisions, so you likely won’t need to wait too long to know if you’ll be receiving a loan or not. In fact, some lenders now offer instant decisions, which means you can find out if you’ve been approved as soon as you apply.
5. Check Your Bank Account for Funds
Certain lenders can process your direct deposit loan on the same day. But some may require that you’re approved before a specific cutoff time, like 10 a.m. That means if you know you need money the same day, you’ll want to apply with the lender first thing in the morning. Otherwise, you may have to wait until the next business day to receive funds.
The Bottom Line
When you need money now and can’t afford to wait for your next paycheck, direct deposit same-day loans may be a good option. But, as with any loan, you’ll want to be sure to have a repayment plan in place before you apply. Doing so means avoiding unnecessary fees and interest so that you can pay less money overall and be better off financially.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.
Source: iQuanti, Inc.