What Is an Overnight Payday Loan?


written by

Ana Gotter
January 21, 2022

Whether you’ve been hit with unexpected emergency expenses or need cash for a too-good-to-pass up opportunity, no one wants to be just a little short on cash knowing it’s coming into your account in a few days.

If you’ve ever found yourself with mounting expenses and a frustration that your payday wasn’t six days sooner, you likely understand the appeal of an overnight payday loan.

What is an Overnight Payday Loan?

Overnight payday loans are short-term, high-interst loans that are designed to provide quick access to a small amount of funds fast.

Do you need $300 tomorrow to make up the difference in rent, pay for new tires, or pay a friend back for shared expenses? An overnight payday loan can help.

Payday loans are readily available through lenders online, and overnight payday loans guarantee funds in your account next business day (or sooner) if your application is approved.

How do Overnight Payday Loans Work?

Overnight payday loans are simple, and follow this process:

  • You find a lender online, and choose one that aligns with what you’re looking for
  • You fill out a quick application on their site, which will ask for proof of identity, some basic income information, and a bank account to deposit the money in
  • The lender will review your application (without checking your credit!)
  • If you’re approved, they’ll send you information about the loan, including when you’ll need to repay the loan and how much interest will be
  • If accepted, the funds will appear in your account by the next business day
  • When it’s time to repay the loan (often in as little as a week or two weeks), the loan amount and the interest will come directly out of your bank account that the funds appeared in

Who is Eligible for an Overnight Payday Loan?

If you’re currently employed in any capacity, there’s a good chance you’ll qualify for an overnight payday loan.

Many lenders don’t check applicant’s credit, so payday loans are available even for those with low credit scores.

You do typically need to be over the age of 18, have proof of identity, and have a bank account that allows direct deposit.

Is an Overnight Payday Loan Right for Me?

Overnight payday loans come with advantages and disadvantages.

The fast access to even a small amount of funds (often $100-500) can be a lifesaver for people who find themselves unexpectedly short on cash. It can be the difference between making rent or not, especially if you ever receive payment later than expected or unexpected expenses arise.

The availability of payday loans is also appealing. Many people are eligible when they wouldn’t be approved for other forms of funding, thanks to the lack of credit check, and there are plenty of lenders online.

The downside, of course, is the high interest rate and short repayment term. That can be tricky; if you’re low on cash now, spending so much in interest won’t help you get ahead. Because of this, overnight payday loans are a good solution for one-time or two-time needs, but you want to avoid getting trapped into a cycle of needing them to pay off the interest from the last payday loan.