Chances are if you are searching for a payday loan, you need money fast. Whether it be to cover emergency car repairs or unexpected medical bills, loans from lenders advertising “same-day payday loans”, “instant payday loans”, “1-hour payday loans”, and “weekend payday loans” sound too good to be true. Unfortunately, most probably are.
These claims usually refer to the amount of time needed for the lender to approve the loan or make a decision regarding your eligibility. The funding itself usually takes more time, which means it is unlikely you will see a deposit instantly, within an hour, or on a weekend. Let’s debunk a few of these payday loan funding terms.
Payday Loan Terms and Their True Timeframes
Instant Payday Loans
If your car suddenly needs costly repairs, an instant payday loan may seem like a great solution. Many lenders advertise instant payday loans, with no credit check required. But “instant” doesn’t refer to the deposit. Instead, it means you will receive an instant decision regarding your eligibility.
Generally speaking, most lenders out there will give you an instant decision on whether you have been pre-approved, so an “instant payday loan” isn’t anything too out of the ordinary. Typically you will receive funds with one business day.
1 Hour Payday Loans
Similar to these other fast-cash advertisements, 1-hour payday loans don’t mean that you will have cash in hand within an hour. What is more likely is that you will receive a decision regarding your approval within an hour. And, you can probably even sign the agreement should you be pre-approved.
But, the funding will almost certainly take longer than one hour. Like an instant loan, you can expect to see a deposit on the next business day or even by the end of the day.
Same Day Payday Loans
If you are seeking a same day payday loan, you may be in luck. Expecting funds on the same day you apply for a payday loan is a bit more realistic. Direct lenders are often able to provide a same-day loan without having to do a credit check.
However, there are constraints. To receive your money within the same day, you need to carefully read the FAQs and application instructions. Many loans require that you apply by a certain time and receive approval before their cut-off time. This cut-off time is commonly before noon and can be as early as 11 am.
To meet these requirements it is recommended that you apply as soon as you can on a weekday, which often means early morning. Unfortunately, if it is a weekend or if you miss the cut-off time, you will likely see your funds the next business day.
Weekend Payday Loans
If you need cash fast on a Saturday or Sunday, a weekend payday loan may seem perfect. However, lenders advertising weekend payday loans likely won’t be able to get you funds on a non-business day. Much like instant payday loans, a weekend payday loan often means that you will receive an approval decision during the weekend.
This makes sense considering that while lenders may operate on Saturdays and Sundays, most banks do not. Make sure to read the fine print regarding when you can expect funds before committing to a weekend payday loan. Usually, you will see a deposit on Monday afternoon at the very earliest.
Why Aren’t Instant Payday Loans Really “Instant”?
While we are used to having things instantly, instant payday loans are often too good to be true. To receive a payday loan you need to work with a lender and complete an application process.
Many payday loans don’t require a credit check, so the approval decision should be relatively quick. After you have been approved you will need to sign a loan agreement. All of these things can take place in under an hour. However, the funds need to come from a direct lender or a bank.
Lenders must send the ACH deposit to the bank. The bank must then process the incoming ACH credits and make the transfers. This commonly isn’t too swift a process; certainly not less than 60 minutes.
For this reason, the earlier you apply on a weekday the better. If you make it before the cut-off you can generally expect to receive your loan within the same day. However, sometimes despite applying early you may have to wait until the next business day.
Because banks only work Mondays through Fridays and don’t work holidays, applying on a weekend or holiday reduces your chances of getting cash quickly. Lenders do work on weekends and non-banking days, but the ACH transfer probably won’t be approved and sent until the next business day.
Instant Approval, Not Funds
If you are on the hunt for a fast payday loan it is probably due to some sort of emergency. Understandably, this can be stressful. But remember, payday loans advertising “instant”, “1-hour” or “weekend” usually are referring to the time it takes to receive an approval decision, not receive funding. A same-day payday loan is a more realistic expectation. Apply as early as you can on a weekday morning and you may receive your funds within the same day.