What are Unsecured LoansUnsecured loans have been the “go-to” option for borrowers with no collateral asset to pledge. It has provided amazing cash assistance for people that are direly in-need of funds quick. There are several types of loans that are considered unsecured. All of which, can be accessed online and the process is pretty easy. One of the few examples of an unsecured loan is a payday loan. Payday loans can be granted to the borrower on the same day. However, unsecured loans are generally offered with high-interest rates due to the absence of collateral assets.
Payday loans are known for their fast processing, approval, and funding. However, unless you are able to meet the lender’s requirements, it is still possible to get rejected when applying for one. If you’re in a financial emergency and you need cash fast, it would help immensely if you can find a provider that offers guaranteed payday loan approval.
Characteristics of a guaranteed payday loan
The quick cash release of guaranteed payday loans makes them ideal when you have an urgent expense that needs to get covered. Most lenders can get a loan application processed and approved within the same day, some required even less time. So, you can expect that you get the funds within the day.
Guaranteed payday lenders are still required to perform a credit check. However, unlike the hard ones performed by traditional lenders, what they do is just a soft one. This means that they will not have any effect on your credit record and shouldn’t hurt your chances of you getting approved for a loan in the future. This also means that even when your credit score is bad, getting approved will not be a problem.
The requirements are relatively easy enough to comply with too. Typically, guaranteed payday lenders will only require borrowers to supply them with the basic documents such as proof of income and valid identification documents. What they would most be concerned with is your ability to pay them back. As long as you can show to them that you have a stable source of income, you can easily get approved.
What You Need To Know
Understand that when payday lenders offer a guaranteed loan approval, there is still really no assurance that you will get the cash you need if you do apply. While they do offer a more lenient application process, you will still get subjected to the processes and procedures involved in every payday loan application they process. They do however, offer a faster processing time, making them most ideal for urgent cash needs.
Regardless of the type of loan you want to take out, you’ll find that there is no such thing as a guaranteed approval. No legit lender will offer any guarantee to your application because they know that they will need to look into a number of things first before they will give you the nod of approval.
Whilst it is true that there are lenders that offer more lenient loan requirements than others, you should be wary of those that guarantee your loan approval. Legitimate lending institutions will never promise such a thing. What you can do instead is take steps to improve the chances of your loan getting approved. You’ll still have to go through the lender’s review and processing before you can get access to those extra funds you want.
What guaranteed payday loans really mean
When a lender offers a guaranteed payday loan, what they really mean is that they are offering a lending criteria that is more flexible especially when compared to a credit union or a traditional bank. They do not mean that any application will get approved. But this kind of payday lender will be interested not only with your credit score but that they want to consider your capability of paying the loan back such as having a steady source of income.
Loans of this kind are usually available online. This is most convenient for borrowers since they do not even need to leave home to apply. After filling out the application form, just make sure to provide the supporting documents and all you need to do is wait for the approval. If you meet the lender’s criteria, then they should be able to hand it to you. You’ll usually get the funds within the same day you got approved.
Things To Consider
Do remember that short loans like these are charged very high interest rates. It matters that you keep with the schedule and pay the loan back on its due date to avoid getting charged more.