In an ideal world, we would all be able to make bank payments month after month. However, reality rarely mirrors perfection. Sometimes, we just need cash urgently to pay one bill or the other, lest we risk falling into more debt. That is why payday loans exist.
Payday Loans: What exactly are they?
The origin of the term “payday” in “payday loan” comes from the fact that it was assumed that the loan would be paid back by the borrower’s next payday. In essence, they are urgent short-term loans offered by businesses called “direct lenders”.
For people who take these loans, it’s not that they can’t afford these bills. Rather, they just can’t afford them within the stipulated amount of time. These days, payday loan contracts are far more flexible and include longer-term loans which can be paid in installments. The key factor is that they can be gotten quicker and easier than normal loans
Of course, these businesses charge some amount of interest for these loans. They are businesses after all. So what then are guaranteed payday loans? Are guaranteed loans really guaranteed?
Guaranteed payday loans
Contrary to what you might see in adverts, there is no such thing as a guaranteed payday loan. What companies call guaranteed payday loans are just loans you can get, even if you have a bad credit score.
In other words, they are guaranteed regardless of your credit score so long as you meet some other criteria. It would be impossible to turn a profit if these companies just gave money to anyone who asked, after all. That being said, advertising guaranteed payday loans isn’t illegal (though it is misleading), because these companies generally include the details in the fine print of their adverts.
Should You Get A Guaranteed Payday Loan?
We cannot stress enough the fact that payday loans should only be sought to pay for necessities and emergencies. You should never use payday loans to buy something like a new watch or designer clothes. You’ll end up regretting it.
Also, note that guaranteed payday loans have an increased tendency to exert predatory late payment fees and abnormally high interest rates. Hence, you should always make sure to read the fine print before making an agreement with any lender. If you can do this, you’ll be sure to get the best deals.
What Do You Need?
These businesses don’t care about your credit score but they still need to know that you are capable of, and willing to, pay back the loan. As such, they’ll require things like proof of your identity, evidence of employment or other income sources, your home address, etc.
In addition, every loan you can possibly get requires some form of credit check. However, these checks aren’t necessarily because they want to see your credit score and might not affect it in any way. Rather, they are used to verify your identity and are called “soft searches”. However, whether a complete credit check is done differs from lender to lender, and it is best that you confirm this point with them.
In conclusion, guaranteed payday loans don’t offer 100% approval rates but allow you to get a quick loan even if you have a bad credit score. However, you’ll need some basic documentation to get started.
