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Living from paycheck to paycheck is a normal scenario. In fact, even individuals who are working for a long experience runs out of money from time to time. It can be caused by various factors such as the economy, a sudden expense, or the insufficient income they receive every month. Luckily, there are ways on how they can lighten up the financial burden and bridge the gap between paydays. One popular alternative is the payday loans. These guaranteed loans are easily accessible and convenient, giving every borrower a chance to receive an advance even with minimal requirements.
But like other loans, the short-term credit comes with several cons, thus it’s important to understand it first before sending an application. Below are some of the things you need about payday guaranteed loans.
What Are Payday Loans?
Payday loans provide a small loan amount, ranging from £100 to £1,000. As a short-term loan, it is usually settled after two weeks or on the next payday, depending on the loan’s terms and conditions. Unlike an installment loan, it is settled in one lump sum, including the principal amount, interest rate, and fees. In case the borrower cannot give the entire repayment yet, he can ask the lender for an extension. Rollover is allowed as long as the debtor agrees to settle additional charges.
Payday guaranteed loans will not require a credit check, guarantor, or collateral; however, it’s important for the borrower to be employed so he can provide a strong source of income. In case he’s jobless, he needs to have an alternative source of funds such as benefits, pension, or alimonies. The loan can be acquired conveniently by visiting storefront payday lenders or by applying online. Borrowing over the Internet allows the borrower to acquire the extra cash he needs without consuming a lot of time and effort. Online payday loans will only require a 2-minute application form and once approved, the loan is sent directly to the debtor’s bank account.
But despite its convenience, these guaranteed loans come with a very high-interest rate, thus making it as one of the most expensive options.
Applying For Payday Guaranteed Loans
If you want to apply traditionally, you will need to bring a handful of requirements such as a pay slip, certificate of employment, bank statements, etc. The loan application procedure may take a couple of days or weeks, depending on the lender. For the repayment, you will provide the lender a personal check which will be deposited on the agreed period. The check should include the principal rate, interest rate, and other charges.
On the other hand, if you want a hassle-free application, you can go online. All you have to do is find a reliable lender website, fill out an application form with personal and financial details, wait for the lender’s decision and once granted, the money will be sent to your bank account. You can also use your account to settle the debt; just give the lender an access to your bank account so they withdraw the money on the loan’s due date.
How To Use Payday Loans Wisely?
Payday guaranteed loans are both advantageous and disadvantageous, thus it is best used as a last resort. Using it only when it’s necessary is one way to avoid further financial problems. So before you send an application, take note of these things:
- Before start looking for guaranteed loans, find out if you really need it or not. Is it a life and death situation? Is it something you can live without? There’s a chance that you’ll be paying more than what you’ve borrowed so it’s better if you’ll use it for emergency cases.
- Go for an amount that you can afford and you only need. Most ads may be enticing, but remember, you need to settle it after two weeks. Make sure that your income is enough to cover the repayments otherwise, you may get yourself trapped in the vicious cycle of debt.
- Although it is almost guaranteed, it is not for free. It comes with very high interest rate and it can increase depending on the amount you will borrow. Evaluate your financial capability and explore other options first.
- Avoid extending the loan. If you think you’re income is not enough to cover the repayment, look for an alternative instead.
How To Find The Best Payday Loans Lender?
Having a loan provider who offers the lowest interest rate and flexible repayment term can help you cope up with your finances. It may not remove the interest applied but at least, it’s cheaper than the other lenders.
First and foremost, find a payday guaranteed loans provider that will only ask for a few requirements. If you are in an emergency, the last thing you want is to look for several documents. You can opt for online payday loans instead if you want a faster, easier loan alternative.
There are a hundred comparison sites available over the Internet and these will help reduce the time spent on researching. Instead of gathering details by yourself, all you have to do is compare the rates, policies, and repayment terms on their page. But still, you should take enough time looking out for the one who offers the best rate and a lower interest.
Another way is to get all the feedback you can from their previous clients. These will help determine whether they are legitimate or not. It will also give you a glimpse of the kind of customer service they offer to their customer. Are they intimidating when it comes to settlement? How professional are they when answering your concerns? Are they available 24/7?
Last but not the least, be sure to read and understand the lender’s terms and conditions. Some payday guaranteed loans providers are not transparent with all the fees and deductions and it won’t be long until you realize that you’re paying for hidden charges. If you have any concerns, do not hesitate to ask the lender about it. Reputable companies are willing to explain how the loan works, their policies, and repayment terms.
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