Guaranteed Payday Loans
Financial stability can be difficult to maintain, especially for individuals who are living paycheck to paycheck. 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 payday loans can help individuals in such situations who are facing 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.
How high are your chances for approval for payday loans and are guaranteed payday loans reliable, if even available? We address such inquiries below.
What is a Payday Loan?
An online payday loan is a short-term cash advance that may help those facing financial difficulties. Unexpected expenses can crop up and need immediate attention; a short-term loan may provide relief in such cases. Payday loans are expected to be repaid through a one-time payment by your next month’s salary. Interest charges are also added to the total amount to be repaid.
How Does It work?
In order to request an online payday loan, there are a few simple steps you need to follow.
- Before beginning the loan process, you must first make sure that you are eligible for a loan and are able to meet a lender’s requirements. To apply for a loan in the U.K., you must be at least 18 years of age, will typically need to present a form of identification, and will need proof of your income and banking information. Some lenders may have additional requirements based on your specific financial situation.
- Once you submit your loan request form, it will undergo careful consideration. Lenders will vet your application to make sure that you are able to repay your loan when the time comes.
- If you are approved for a loan and receive an offer from a direct lender, then you may have funds transferred into your account, typically within two to three business days.
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 100% acceptance.
Keep in mind that online direct lenders may also take other factors, such as income, into consideration.
When Should You Consider Taking a Payday Loan?
Quick access to some extra cash can be valuable in many situations, but payday loans are commonly used for emergency expenses that may not have been accounted for in your monthly budgets. These can include car repairs that need immediate attention, small household or utility bills that may incur fees, and other short-term outstanding expenses or instances of cash shortages.
Should You Take Out an Online Payday Loan?
Individuals may be drawn to short-term loans because of an emergency need for cash. But potential borrowers should note that while such loans may be more flexible than traditional loans, they come with their own caveats.
● What are your chances of approval?
When considering applying for a payday loan, you may be in the market for a fast and speedy source of cash that involves minimal hassle. But online payday loans are not necessarily easier to attain. As noted above, you must first be eligible for a loan, after which a lender will thoroughly evaluate your application to determine whether you qualify.
● Are loans customizable?
The loan amount is determined by the lender who must follow the FCA’s rules about the minimum and maximum amounts you can borrow. Borrowers should try to take out the amount of cash needed to minimize interest rate charges and fees.
● How easy is the loan application process?
An online payday loan can typically be applied for on the internet or at a physical shop. Online loan applications may prove more convenient. The loan application process itself can take up to an hour, and if approved, funds can sometimes take a few business days to be accessible.
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. Plus, guaranteed payday loans and short-term loans for those with bad credit are often not available.
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. Additionally, contrary to what some may think, not all customers will receive equal opportunity when it comes to loan approval, especially those with bad credit.
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.