Guaranteed Payday Loans Direct Lenders
One of the most common and frequent questions among borrowers is whether there are guaranteed loans online from direct lenders. When lenders market their services on a website or online platform, they try to present their offers in the best light. A lot of times, this means they may use specific language or phrasing to color their offers. In the midst of all these, borrowers are sometimes misled into believing that a lender’s service is better than it is in reality.
So, it is crucial for you to be informed and aware of whether there are guaranteed loans by a direct lender. With the right information, you will be able to get the most from direct lenders. As you understand what lenders mean when they offer guaranteed loans, you’ll be able to secure better loans in the future.
Guaranteed Payday Loans from Direct Lenders, do they exist?
The first thing we have to clarify is whether guaranteed payday loans from direct lenders exist. This idea can be a tricky concept because of the way borrowers perceive it. At first glance, it may read as if a direct lender can offer you a loan with guaranteed approval and no questions asked. The problem with this idea is that it is simply not possible in real exchanges. There’s no lender out there with guaranteed approval for a loan without some minimum verification on your income or financial account.
So, when you fill out an online application for a payday loan, you’re essentially putting up your information for the lender. To understand the catch, your loan is guaranteed only if you qualify for the conditions. Given the requirements of a payday loan, you will most probably qualify for one as long as you have the papers. So, in this sense, your lender can guarantee you a loan, provided you fulfil the necessary procedures.
You may also come across lenders who guarantee an instant approval for your payday loan. When you apply for payday loans online, the process is simple and straightforward. So, if you go through all the necessary steps, it won’t take too much time to approve. In fact, the cash advance is usually wired to your account within one business day. But even in this case, lenders will not provide instant approval without at least doing a soft credit check on you.
Direct Lenders VS Loan Connectors
When you apply for a payday loan, your choice of lenders may come in one of two ways.
A direct lender
With a direct lender you will have to interact with the lender directly. Here, you don’t have to deal with a middle party that works on behalf of both parties. The apparent advantage is that you can chalk out the terms and conditions directly with the lender. But a closer look reveals that this can also be a disadvantage. If you’re not very adept at financial exchanges and loan processes, you can end up more confused. So in short, using a direct lender can be good as the possibility to get a lower interest rate and fee’s.
A Loan connector
You can arrange your payday loan via a loan connector. The benefit with payday loan connectors is that they offer you hundreds of choices. Since their whole service is built around connecting borrowers to lenders, they do it very efficiently. They will streamline the process and connect you immediately with lenders who fit your requirements. This comes as a massive advantage because you don’t have to go through hundreds of mismatches. The downside is that the connector takes a commission for the loan, which most often affects the interest rate or fee’s on the loans offered.
How Much Can I Borrow with a Payday Loan?
Payday loans are a common form of short-term financing. Given the short duration of the loan period, lenders generally do not give out big amounts. A critical component of a payday loan is that borrowers have to clear their dues right after their next payday, i.e on the next business day when they have received their paycheck. A payday loan should always be a short term solution. This means the loan amount should be below the amount the borrower earns.
Also, borrowers also tend to take out only that amount which they know can be cleared with the very next paycheck. This is usually a reasonable amount that is not so high yet is substantial enough to cover an unexpected payment.
Given these dynamics, payday loans are usually all under $1000. It’s common to find people going for payday loans that amount to a few hundred dollars. Since these are amounts that can go towards emergencies, it doesn’t usually amount to more than a thousand dollars.
Payday Loan – Requirements
Payday loans come with very straightforward, simple requirements. It’s one of the advantages of short-term financing. You don’t have to go through tons of paperwork and processing for loan approval. There are some downsides to this as well. But for the most part, it’s beneficial if you need quick cash and your credit report is low.
Whether you apply online or in person, payday loans generally share these requirements across most platforms.
Certain age restrictions apply to borrowers who are seeking loans. You have to be of legal age before you can legitimately ask for any loan, payday, or otherwise. The minimum age for securing a loan is 18 years. But it’s better if you are at least 21 or over because this means you have a few years of work experience.
You have to present an income of at least $800 per month. But here too, a stable income of $2000 or so would work much more in your favor. A steady monthly income shows that the applicant is capable of honoring regular repayment terms. Consistent and stable monthly earnings can reassure lenders that you will not default on your payment. With payday loans, this is important because the repayment is usually scheduled around your next paycheck.
An Active Bank Account
With lenders, a big part of the concern for a payday loan is your financial capability and history. Here, an essential requirement is to own an account at a bank with the considerable movement of resources. If you have a healthy record of transactions in your account, it results in a better credit rating. Certain loans may be possible without accounts, but these options won’t offer you a lot of benefits. With an active account you have access to all lenders that can offer loans online.
Proof of Identity
With financial scams and thefts lurking everywhere, banks and lenders need to know who you are. An ID that establishes your identity is one of the first things lenders will request. Valid identity proof is one of the primary requirements you will need to produce. If you’re opting for an online application, your identity will be among the first details you enter.
Proof of Income
Finally, you may have to show some evidence of the income you’re earning. Usually, this is covered if you have a pay stub from your work. A pay stub usually consists of an item-wise breakdown of your salary and deductions (like taxes). It gives the lender a fair idea of not just how much you earn, but how much makes it to your hands after tax cuts.
Credit Score and Credit Checks
When you’re in a financial pickle and need money quickly, payday loans remain a good alternative. But even with payday loans, lenders will require some proof of credit capability form you. And with long-term personal loans, your credit scores become the core parameter around which the terms of the loan are set. So, it’s crucial to understand what credit score means and what a credit check entails.
While most payday loans most often only requires a soft check the other types, personal or installment, require a hard credit check. Your credit score is a numerical value that summarizes your financial stability and capability. Three main credit bureaus assess your finances and then generate a credit rating. This credit rating is used by lenders almost everywhere. These three credit bureaus are TransUnion, Experian, and Equifax. So, when banks and lenders look up your creditworthiness from these types of sources, they’re performing a credit check. And the figure in which these credit bodies present your credit capability is your credit score.
Credit checks also come in a few forms. The two most common types are soft credit check and a hard credit check. With payday loans, you might move ahead with just a soft credit check by the lender. The benefit with a soft credit check is that it doesn’t usually involve the big credit bureaus. This means it doesn’t affect or lower your credit score. With hard credit checks, however, lenders make a comprehensive inquiry into your credit history. This reflects poorly in your rating if you already have bad credit.
Does Bad Credit affect my Chances?
A less-than-stellar credit score does not necessarily mean that you won’t be able to get personal loans or payday loans. There are lenders out there who offer both personal loans and payday loans to borrowers with bad credit. However, a bad credit rating will definitely have some bearing on the kind of loan your get. The lender will usually chalk out the terms and conditions depending on your creditworthiness and capability.
Bad Credit affects the possibility for Bad credit Payday Loans
Your credit rating is low, it reflects poorly on the financial decisions you’ve made in the past. This gives reason for lenders to set terms that may cost you more. So, yes, your bad credit affects your chances, but you will still get access to a payday loan that fits your situation.