Next-Day Loan - Everything You Need To Know

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Len Penzo
Next-Day Loan - Everything You Need To Know

If you require immediate cash, a next-day loan can be a lifesaver. However, these loans come with shorter repayment terms and extremely steep interest rates. If you don’t consider all aspects, this quick loan can also quickly turn into a debt trap.

Keep reading to learn how to negotiate for a lower rate and choose the best lender for a next-day personal loan.

What Is A Next-Day Loan?

Just as the name suggests, a next-day loan means you can receive the required funds in your account within a day of applying. Please be informed that many payday loan issuers also advertise this as same-day loans, but it normally takes a day to receive the amount after approval.

Usually, almost all next-day loans for bad credit involve small amounts of cash deposited to your account for emergency expenses. A credit score isn’t required for approval, but some lenders may perform a soft credit check. There are different types of next-day business loans and personal loans that you can choose from. Moreover, most of these have the same basic eligibility criteria.

That being said, please keep in mind, that the fees and interest on these loans can go very high. Hence, we recommend that you consider all aspects before applying.

Below are some of the best next-day loans worth considering.

Title Loan

A title loan is a short-term secured loan that you can access by putting up your vehicle as collateral. Title loans are only valid in certain states, so double-check with the lender before applying. Title loans have shorter repayment terms, usually 30 days.

Borrowers should be very careful about obtaining a title loan according to the Federal Trade Commission (FTC). First, it’s critical to realize that the lender takes the title to your vehicle as collateral. This means you forfeit your car if you don't pay the loan back.

Additionally, these loans have very high interest rates. Title loans can charge an interest rate of 25% or more per month. The extra expenses of the loans are also correlated with rising interest rates. Depending on the amount and term, the APR on these loans can go as high as 300%.

Personal Loans

Another good option for urgent funds is personal loans. A personal loan is an amount borrowed from a bank, credit union or a non-bank lender, which is normally repaid between two to seven years at a fixed interest rate that varies from 6% to 36% APR. The vast majority of personal loans are unsecured. For personal loans, some lenders charge origination fees, while others apply all of the fees to the interest rate.

The interest charged is comparatively lower than a payday loan, a cash advance, a title loan, and even a payday alternative loan. The application and approval processes for personal loans are also more straightforward compared to home and car loans. Most personal loans need a minimum FICO score of 580 and above. Borrowers need to furnish a lot of documents to receive the best rates.

The good thing with personal loans is that you can use them for any purpose whatsoever – from debt consolidation to home improvement loans.

Next-Day Loan Alternatives

While next-day loans are easy to get, the excessively steep interest rates and shorter repayment terms might not be the perfect fit for you. Still, there are some other equally good alternatives that you can explore for urgent funds:

  • Apply For A Payday Alternative Loan - You should apply for a payday alternative loan if you’re a member of a federal credit union. The terms are usually 1 to 6 months and the amount of the loan ranges between $200 and $1,000. Fees are $20 or less and the maximum interest rate is 28%.
  • Credit Card Advance - With interest rates of approximately 15%, loaning the needed amount from an existing card can be a cheaper alternative to next-day loans.
  • Personal Loans With Extended Terms – Speak to the lender and see if they agree to a longer-term. Depending on your payment history and debt-to-income ratio, lenders may consider extending the terms. The total amount you pay will increase but you’ll be able to accommodate the monthly payments in your budget better.
  • Seek Help From Friends & Family – While this isn’t the best idea, it’s worth a try if you’re struggling with funds. If you borrow from a friend or family, you hopefully don’t have to pay interest.
  • Non-Profit Funding – Check out if any NGOs or peer-to-peer lending groups are offering lower-interest loans. You can also check if your employer has a similar program.


Next-day loans are easy to get if you have a stable income and can furnish the minimal documentation. However, you must be wary of the steep fees and rates. We recommend that you explore all other alternatives available before choosing a next-day loan if you’re already struggling to manage your funds. Make sure to read the terms and have an open discussion with the lender so you can negotiate a better rate as well.