Short term same day loans are an increasingly popular tender of money agreement that is used by thousands of South Africans every single month.
Are you wondering whether it could be the right solution to solve your current money problem? You are not alone.
Short term same day loans are also known as payday loans, cash advance loans, payday advances, or salary loans. Whatever you call them, Blink Finance provides them. Here's all you need to know about whether they are right for you.
Short Term Same Day Loans At A Glance
The first question to ask before taking out a short term loan is simply this: What is a short term same day loan?
It is a loan that commonly involves borrowing a relatively small amount of money with a view to repaying it in a short timeframe. They are most frequently used to cover;
- Medical emergencies,
- Home repairs,
- Other unforeseen expenses.
At Blink Finance short term loans allow you to borrow between R500 and R8,000. Funds will hit your account on the same day that you make the application too. The loan is then repaid over the coming weeks. The most common duration is 31 days.
5 Things You Need To Know About Short Term Same Day Loans
Blink Finance's short term loans appeal to anyone who needs a quick cash injection. Before making an application, though, here are five things you need to know.
Eligibility Is Likely
First and foremost, same day short term loans are the most accessible tenders of money available from official lenders.
As with any personal loan, South Africans may only take a short term loan if they are aged 18 and over. Likewise, applicants will need to provide proof of address, have an account that they can be paid into, and show proof of earnings to confirm that the loan can be repaid.
Eligibility requirements are far lower than other loans and financial agreements. This is due to shorter timeframes and funds involved. So, even if you have previously been unable to borrow money through other lending platforms, this option may remain open.
Blink Finance provides a simple application process. Simply input your South African ID number and the system will provide an instant answer.
Funds Can Hit Your Account Within An Hour
Same day short term loans could see funds hit your account today. But exactly how quickly can funds be released to your bank account?
All lenders are unique. So, timeframes may vary slightly between one applicant and another. At Blink Finance, successful applicants are guaranteed to receive funds within 24 hours. However, most people can have funds hit their account within an hour and sometimes within just 15 minutes. Funds may be released into the same account that your salary is paid.
Applications are now commonly completed online. Moreover, a soft credit score check allows users to assess eligibility quickly and without financial implications. In fact, some allow for loans to be agreed without credit checks. Thanks to the growing use of AI, decisions are instant.
Same Day Payday Loans Can Last For Up To Six Months
The average duration of a same day short term loan is 1-6 months. If you suspect that you would need longer to repair the temporary cash flow issues, it is better to look at alternative borrowing options.
However, it is better to repay a short term loan quickly as this reduces the total cost. Blink Finance allows applicants to borrow funds for three months. Still, most applicants find that settling the debt within 31 days is the best solution.
It should be noted that you can arrange to delay the first repayment. While the duration of this payment break does vary between lenders. Once repayments commence, though, the weekly/fortnightly/monthly payments must be made as agreed.
Same Day Short Term Loans Impact Credit Scores
When thinking about financial health, the significance of credit scores cannot be emphasised enough. They have a huge influence on your future borrowing opportunities, both in terms of eligibility and interest rates offered. Before taking out a same day loan, you should know that your credit score will be impacted.
As well as opening a new crest account, the loan increases your total debt. Likewise, it will show on your report that you have made an application and recently had a credit history check. Meanwhile, missed payments would drag your score down further.
Conversely, payments made on time will boost your credit score. Furthermore, your total debt as well as the percentage of credit used falls with each payment. When combined with the fact that the account is cleared quickly, your score can see a noticeable improvement in the months to come. When used responsibly, this type of loan may help open the door to a brighter financial future.
Missed Payments Will Cost You Dearly
Finally, it's important to know that missed payments on a payday loan can have a hugely detrimental impact on your finances. For starters, credit scores will take a battering.
In addition to this, the direct impact on your finances are significant. Each lender has different terms and conditions, but most will place an admin charge on the account due to the failed payment. Blink Finance charges a monthly R69 service fee and a 5% interest charge for any non-repayments. The chargers are lower than many, but you should still want to avoid them. Not least because debt recovery action will be taken after two missed payments.
Moreover, the impact of the interest rate means that your total repayments will skyrocket. It also becomes harder to clear the balance, thus resulting in further problems.
As long as repayments are made as per the agreed schedule, this will not be an issue. Still, every applicant should understand the potential repercussions before making an application and confirm that they are financially capable of satisfying the obligation.
Understanding Same Day Short Term Loans
Short term same day loans are a useful option for people who encounter temporary money worries or have been hit with an unforeseen expense. However, irresponsible borrowing can quickly land you in a financial pitfall. So, you must use them correctly.
To do this, you must review your financial situation with honesty. In turn, you should be able to make a data-driven decision. Follow this by working with a reliable lender like Blink Finance to find an agreement that aligns with your needs.