How Frequently Can You Apply For Same Day Loans?
Posted by Breezy Loans on June 25th, 2022
The availability of online credit has changed the dynamics of the lending market. It has become common to look at same day loans over mainstream bank credit when the cash needs are small. The reasons for the popularity of these loans are plenty. The clause at the juncture is a number of times you could apply for same day loans. Like cap limits on the loan amount and tenures, there is a cap on the number of times same day loans can be applied. Continue reading the article to know more information on the clause that is still a hidden secret for many.
Cap Limits On Same Day Loans
Loan Amount
Same Day Loans are online credit issued for the people for the immediate small cash assistance. Like mainstream objective loans, they are not an option for your bigger needs. The credit limit of these online loans is capped to the maximum of 00 per loan request, irrespective of your higher eligibility. The minimum amount you could take through the loans is 0, and hence, credit has become a dear option for the low-income group. The minimum cap limit and any amount in between could help the borrower choose the amount they need.
Loan Tenure
Same day loans have a shorter tenure in comparison with mainstream loans. Being a small and unsecured loan, the lender has capped its shorter tenures. The maximum tenure you can settle the loan amount could be a year, and the minimum is 90 days. The borrower has to fix to spread the loan repayment through at least three installments. However, the borrower can enjoy the flexible tenure anywhere in between analysing their repayment capacity.
Frequency Of Borrowing Same Day Loans
There is a thumb rule on the number of times you could take same day loans to pay your needs. Though the online lenders don't mention it, there should be at least a gap of 6 months between two loans which means you can take two loans a year. Small Personal Loans are an easy financial assistance option but should not be availed multiple times hampering your financial health. If there is an unavoidable emergency, you can always go for a new loan, but the lender may suspect your financial health.
Caution While Applying Same Day Loans
Absolute Necessities
Same day loans are undoubtedly an easy financing option to pay your needs, but they cannot be your choice for every need you encounter. Though these loans feature flexible spending, they have to use for absolute necessities like medical emergencies, paying piled-up utility bills and emergency auto repair. The need you address with the loan should be justified by the interest you pay for it. Also, you should take the loan amount by calculating your necessity rather than the eligibility to ensure you are left with no ideal amount in your account after spending for the purpose.
Don't Apply For The Second Loan While One Is Open
Not only your current income and credit score, but the lender also considers your debt-equity ratio to approve the loan. Each time you apply for a new loan with the lender, there is a hard inquiry on your credit score. Multiple inquiries in the short interval may create a negative impact on the credit. Though you apply for the second loan with the new one, your credit report will reveal the existing same day loan in your portfolio, and the lender will be reluctant to offer the second one while the first is open, suspecting your ability to manage the repayments of both the loans in parallel. They may reject your loan request, and each rejection will decline your credit score. If you are about to apply third same day loan in a year forced by any unforeseen emergencies, make sure you are applying after closing all your existing online loans to avoid unwanted rejections.
Check On The Interest Rates.
The same day loans are bound by significantly high-interest rates. When you are applying for multiple online loans in a year, managing the repayments with high-interest rates could be complex. Take time to research and find the lender that offers loans at the best interest rates.
