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Your Helpful Guide to Quick Guaranteed Payday Loans
What are quick guaranteed payday loans and how do they work? How much money can you avail for and when can you pay it back? What about the general costs, are they unnecessarily high or reasonably priced? Is it really guaranteed? These are some of the questions that might come to mind when we hear the words ‘guaranteed payday loan’. As a result, this article will tackle all these questions in detail. Rather walking you through all the important information that you need to know about them.
What are Guaranteed Payday Loans?
A guaranteed payday loan, as its name implies, guarantees that your application will be accepted by a direct lender. Thus this is only once the necessary information has been sent to the lender. They are also called high acceptance rate loans because they provide higher approval rates compared to other types of credit. They are also short-term unsecured loans, which means that they do not require collateral and have short maturity periods. Hence the usual term period is just for a few months. Also if you are in dire need of cash but are reluctant to avail for a loan. Especially after having been rejected numerous times by banks and other lending institutions this might be best. Therefore you might want to explore these loans and it’s a comforting guarantee.
How can you apply for them?
When you apply for this credit, you can avail for a few thousand pounds depending on the lender. Yet you will need to pay it back after a few weeks or months. You can avail of it online, due to the application process being generally quick and easy. In addition to the use of a computer or even your mobile phone via the internet. The lender will normally ask you to provide some basic but vital information regarding your residence, current employment status, and personal bank account details. While the money will generally be deposited in your bank once your application is approved. As a result, your lender will ask you for your bank account number.
Who can use them?
Virtually anyone can use them as long as they meet the general criteria that lenders require in the application process. If you are in an emergency situation since speed is crucial and you don’t want to waste time on applying for a loan that will get your application denied in the end. Therefore you simply can’t afford it, especially if important bills are due in a couple of days. Since what you need are a quick and sure way to get money and these loans will give you just that. Furthermore unexpected expenses that require urgent attention, these loans can be an ideal solution.
How do you repay them?
Normally, you need to pay back the money that your borrowed plus some extra fees that the lender will charge in your next salary. Because the exact date when it will be due will be indicated once you avail of it. Lenders will expect you to repay the money that they lent you in almost one single payment. How much lenders charge for their services is reflected in the total APR and this is one area that you need to look into when opting for a loan. Therefore always choose the one that gives you the least APR since it will be the deal that will provide you with the least cost. The most recent cap in interest rates that the FCA has implemented on payday loans is at 0.8%. Therefore lenders cannot go over that cap or they will be violating the law.
Finding a Reliable Lender
In recent years, payday loans have received plenty of bad feedback and criticisms from borrowers and consumer groups alike. Due to this bad reputation, financial experts have lost faith in them. A lot of financial experts would even advise you to stay away from them altogether and to avoid using them as much as you can because of their potential to create a spiral debt.
However, the notorious reputation that these loans have been carrying for quite some time now can be blamed largely on bad business practices made by loan sharks and irresponsible lenders. Because they lend money to as many borrowers as they can without considering whether or not these people can actually afford such a loan and the costs that come with it. As a result when they miss out on their payments, the lenders would just add further interest rate as penalty and this will continue on and on until the total amount of money that the borrowers have paid for in interest rate will have already exceeded the amount that they borrowed for and they haven’t even got out of the debt yet.
This is why it is important that you find a reliable lender who will help you find the deal that works best for and your current financial situation. Most of all always borrow from a reliable lender who is concerned not just in making money but in helping you overcome the financial difficulty that you are currently facing.