Guaranteed Loans – Do they exist?

Guaranteed Loans – Do they exist?

Payday loans are a popular way to gain extra cash in an emergency and handle financial difficulties. However, there are misconceptions about the process and the ease with which borrowers obtain their money. There are many online lenders and brokers online falsely claiming to offer guaranteed payday loans.

Do Guaranteed Loans Exist?

There is no such thing as a guaranteed loan. No company can promise they will loan you the money you need regardless of the amount or circumstance. So, you must prepare for the possibility that so-called guaranteed payday loan providers will reject your application.

Why Might A Guaranteed Loan Not Be Guaranteed After All?

It all comes down to credit scores and credit checks. There is the misconception that companies offering guaranteed payday loans will just take your details and set you up with the money and repayment plan. After all, they say the money is guaranteed. But, all lenders must act responsibly when lending and run a credit check before approving a loan, therefore, all loans are subject to credit checking and approval. Lenders need to know that you are able to keep up with your repayments and don’t want to make a bad investment.

A credit check basically means looking at your credit score via a company like Experian, Equifax, or TransUnion. That number relates to your borrowing history, available credit, and previous debt handling. If there are no major debt-related issues and you always pay off credit card bills with ease, you might be approved. If not, you might struggle to get accepted. The loan company is searching for significant red flags to see how they should proceed and until they are happy, there is no guarantee of a loan.

Should I Still Apply For A PayDay Loan Without A Guarantee?

Even with that false advertising about guarantees, a payday loan could potentially be a quicker way to keep your head above water in a rising tide of stress and debt. If something needs immediate financial attention, such as emergency repairs or utility payments, a short-term loan could help if you manage the repayments.

You can still apply for a payday loan even if you think there is a chance you won’t get approved. For a start, your credit score may be enough that the company signs off, and you get what you asked for. You just might end up with higher repayments as a result. Typically you must meet the following minimum criteria for approval:

a) you are between 18 and 65 years old

b) have a personal bank tài khoản

c) have a legal monthly income, and

d) have not declared bankruptcy or started a debt repayment plan.

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