Guaranteed Payday Loans
Payday loans are short-term loans that are taken out against borrowers’ paychecks. Such loans are forms of cash advances and are typically taken out for two to four weeks. Loan amounts usually vary and can be anywhere from $100 to $1,000.
Many Americans utilize short-term loans to help mitigate expenses between paydays. In fact, roughly 12 million Americans take out payday loans each year. But just how easy is it to be approved for a payday loan and is there such a thing as a guaranteed payday loan?
Unfortunately, predatory lenders often prey on unsuspecting borrowers who are in need of cash, fast. To this end, such lenders may advertise “instant decision payday loans” with false claims that applicants can be guaranteed short-term loans on the spot. The truth of the matter is that lenders will vet applicants to determine loan eligibility, which can take time.
Further, if an applicant is approved, funds are not typically deposited into their account until two to three business days.
Why Do People Want Guaranteed Payday Loans?
Payday loans can provide relief to individuals or families that are struggling. These loans can be used for emergency cash needs or personal monetary obligations such as medical expenses, monthly utility bills, home or vehicle repairs, unexpected education costs, and even personal business shortages.
Potential borrowers can apply for a payday loan at a storefront lender or online. The application process can take anywhere between 15 and 60 minutes. Applicants must be at least 18 years of age or older and may be required to present the following information:
- Proof of identity, age, and address
- Bank account information
- Employer and income information
- Social security number
Interested applicants should note that requirements vary from lender to lender. Consumers might opt for a payday loan due to the less strict requirements in comparison to conventional lenders, but should note that there are no such things as “online payday loans for bad credit” or
“online payday loans with no credit check”. Payday lenders will, in fact, consider an applicant’s credit score and history, in addition to their debt-to-income ratio, to determine their ability to repay a loan.
Applicants with poor credit scores may find it difficult to get approved for a payday loan.
Payday loans will be more likely offered to those who can prove that they have the facilities to pay their debts back. As mentioned prior, this can be shown through proof of employment and proof of a steady stream of income.
Borrowers should also be aware of the payday loan restrictions in their areas before opting for a loan. For instance, some states have prohibited payday lending altogether, meaning lenders are not allowed to operate there.
Finding online payday loans with guaranteed approval can be difficult, if not impossible. Consumers who want alternative options to payday loans can consider the following:
- Paycheck Advance: Individuals who are having trouble making ends meet each month can ask for an advance on their following paycheck, from their employer or place of work. This can help to mitigate bills that may be due before a consumer’s regular paycheck date.
- Installment Loans: Installment loans are personal loans that can be less expensive than shorter-duration funding. Borrowers are able to pay back their loans in increments and over longer periods of time.
- Friends and Family: Consumers can consider borrowing money from trusted friends and family members. Those who opt for this should note, however, that there may not be official financial institutions to moderate such transactions.
- Federal assistance: The U.S. government offers a number of benefits to those who are unemployed. These include the Short-Term and Long-Term Disability Insurance which provides disability insurance to those who are unable to work due to an illness or being injured.
- Temporary Assistance for Needy Families (TANF) can also be useful to those experiencing temporary financial difficulties. The program can provide food, housing, home energy, child care, and job training to families until they are able to sustain themselves.
- Local assistance: Some local churches and credit unions offer financial assistance and coaching to residents who are facing monetary difficulties.
- Cutting discretionary spending: Experts advise that consumers save money by cutting unnecessary spending expenditures, in order to avoid opting for shorter-duration funding.