Guaranteed Payday Loans
Financial stability can be difficult to maintain, especially for individuals who are living paycheque to paycheque. And for those who do not have stored funds or access to lines to credit, unforeseen financial circumstances can throw already tight monthly budgets off. Cash advances, such as a quick payday loan, can help individuals in situations of monetary instability. But while shorter-duration funding can be more flexible than other more conventional loans from banks, such loans do not provide guaranteed access to cash.
Unfortunately, a payday loan guarantee is not a legitimate offer. Nevertheless, there may still be alternative financing options available to you when you need it most. Additionally, there are some proactive steps you can take to increase the chances of getting a payday loan.
How to Use the Guaranteed Loan
As previously mentioned, guaranteed loans in the UK are not legitimate offers. Some alternatives to guaranteed loans might include borrowing from family and friends or getting an advance from your employer. Another alternative you might consider is a guarantor loan. If you suffer from poor credit, a cosigner with a good credit rating might be able to increase your chances of obtaining a payday loan. However, keep in mind that even with a guarantor, there is no guarantee that you will receive the loan. Additionally, if you default on the loan, the guarantor will be responsible for repaying the loan, which may damage their credit.
If you do secure one of the guaranteed loan alternatives, you can use the funds to address a variety of financial emergencies, including:
- medical costs
- home and auto repairs
- rent and mortgage payments
How to Increase Chances of Getting a Loan
Meet Eligibility Requirements
Check Your Credit Score
All lenders will conduct a credit check, and many will determine whether an applicant is eligible for a loan based on this criterion. Since thorough credit checks need to be completed, lenders cannot guarantee loans before assessing this factor.
However, if you would like to improve your chances of approval, you can regularly monitor your credit score. The three major credit bureaus offer one free credit check per year, allowing you to check your score every four months.
Monitoring your score can help you determine whether there are any errors. If so, you can quickly dispute these marks to avoid unnecessary negative impacts to your score.
Submit Complete and Correct Applications
Meet Affordability Requirements
Along with checking your credit score, the lender will also check your income to determine whether you can afford the repayments. As a result, this is another reason why lenders cannot offer guaranteed loans.
Each lender has its own income requirements, so it is best to do your research to determine which lender’s requirements you likely meet.
Request What You Need
In addition to checking your income to determine affordability, lenders will also review your application to see how much you are requesting. If your requested amount exceeds your income, the lender will likely not approve you for a loan.
As a result, assess your finances to determine how much you can comfortably pay back each month. Then, only request the amount you can afford. This can increase your likelihood for approval and decrease the chances of falling into a cycle of debt or default.
Pay Off Debt
Bad Credit Payday Loans
Your credit score can be used by lenders, whether they are traditional or online direct ones, to assess your loan eligibility. Late payments or loan defaults can damage your credit score and, in turn, harm your chances of receiving a new loan.
To this end, having bad credit can prove to be an obstacle during the loan application process as banks and other lending systems typically consider your creditworthiness when deciding whether to approve or reject you. Banks are primarily concerned with your past financial activities in order to assess how well you can handle a loan.
Although struggling individuals may want to find an online payday loan direct lender with no credit check, such loans are typically not attainable. All lenders are required to perform the necessary checks and evaluations in finalizing their loan decisions. To this end, there is no such thing as a payday loan with a 100% guarantee of acceptance.
However, keep in mind that online direct lenders may also take other factors, such as income, into consideration.
What to Keep in Mind
Although online payday loans may be desirable to you if you are strapped for money, there are a few things to consider before opting for one. These include:
- When applying for a loan, it is important that you do your research and be aware of all your options. Taking your time to compare lenders can help you find one that fits you and is appropriate for your needs. Doing research prior to applying for a payday loan can also help you better avoid predatory lenders.
- Make sure that you meet all of the necessary requirements before applying for a loan. In order to prevent any hiccups down the line, it can be helpful to gather all the required information and forms that you will need to present to your lender.
- Understand your financial situation fully. Knowing where you stand financially can help you determine if you can afford to take out a loan and the amount that makes the most sense for you. Make sure that your financial status allows you to pay off your debt on time without having to deal with any penalties or late payment fees.
- Read and understand your loan agreement fully. Online payday loan direct lenders typically provide their customers with loan terms and conditions upfront. Reading your agreement can help you better understand your loan responsibilities.
An online payday loan will typically carry a higher interest rate than other lines of credit or bank loans. It may not be an ideal option for those who have outstanding debts or would not be able to make repayment terms.
Online payday loans do not cater to all needs and expenses. One reason is that the FCA has regulations that lenders and borrowers alike must adhere to. These rules stipulate how much can be borrowed, how long loan terms can be, and what fees can be charged.
Lastly, all lenders will conduct a thorough credit, income, and affordability check. As such, guaranteed acceptance and no credit check loans are not possible. If you come across a lender offering such services, be wary as this may indicate predatory lending practices.
While payday loans may be suitable for those facing monetary shortages or emergency expenses, there are other ways to mitigate monthly budgets. You can try borrowing money from your friends and family, seeking federal assistance, or opting for a personal loan instead.
How Much Would You Like to Borrow?
When Should You Consider Getting a Payday Loan?
Payday loans are often referred to as emergency loans because people seek them out when they are in a financial bind. When you have exhausted all other resources, you may turn to a payday loan to help you during unexpected financial situations.
The money is most often used to cover rent, mortgage, medical, utility, or repair expenses. Many approved borrowers may receive the funds in as little as one business day. However, despite the speed and ease of payday loans, they often come with high-interest rates and short repayment terms.
Are Payday Loans Customizable?
Can I Get a Guaranteed Payday Loan from Another Lender?
Unfortunately, guaranteed loans are not available by any UK direct lender. Without conducting income, credit, and affordability checks, lenders cannot determine whether the applicant meets their eligibility requirements.
Lenders that are offering guaranteed or high-acceptance payday loans are likely predatory and should be avoided.