guaranteed payday Loan

April 10, 2023

When an emergency crops up and you are in dire need of money, you seek ways to get an immediate injection of cash. Although various direct lenders are out there to help fund during emergencies, it is not easy to get the nod when your credit rating is not up to par.

Bad credit can come your way of borrowing. A lender cannot make a lending decision just based on your credit report; they will also look at your overall financial situation. When your credit score is very poor, you might decide to apply for a loan that comes with guaranteed approval, like no-refusal guaranteed loans for unemployed direct lenders.  

But there are so many things you should be familiar with about these loans. They may or may not be ideal for you.

What are no-Refusal Guaranteed Payday Loans?

No refusal guaranteed payday loan is another term for a payday loan. In reality, no sort of such loans exist. This is just a marketing term that lenders use to draw you in to apply for the loan. Unless a lender goes through your financial condition, they cannot give a guarantee about approval, so technically no refusal guaranteed payday loans do not exist.

A sensible lender will run a credit check and look at your income statement when you fill in the application form. The approval will be made only when you can afford to repay the debt so you do not fall into debt.

Lenders offering these loans might be a trap to charge outrageously high-interest rates to make money. They will certainly not run a credit check – neither hard credit nor soft credit – and might loan you despite carefully examining your financial condition.

You should beware of such loans as they can trap you into debt. Once you fall into debt, you will end up sabotaging your credit score and financial condition.

Standard Payday Loans Might Work for you

Based on your financial condition, you can opt for standard payday loans. These loans are small loans to be paid down on your next salary day. The length of these loans is not more than 14 days and, therefore, ideal for only small emergencies.

Small payday loans are aimed at bad credit borrowers. To avoid harming your credit points, many lenders do not run credit checks and loan you after perusing your repaying capacity. Payday loans can be costly, but there are chances that you will not fall into debt.

You will need to look at Alternatives when you are Unemployed

A payday loan works only when you have a stable income source. If you are out of work, these loans are not ideal at all. In this case, you will have to opt for an unemployed loan. Guaranteed loans for the unemployed from direct lenders do exist, but under no circumstances does it mean you will get 100% guaranteed approval.

Though you are unemployed, you will still need money to pay back the debt. Claim benefits whether or not you have a passive income source. You will get a loan based on your passive income sources, including benefits. Here is what you can use as your income:

  • Unemployment benefits
  • Child support benefits
  • Rental income
  • Dividend
  • Disabled benefits
  • Windfall
  • Monetary gifts
  • Or any other kind of income

Guaranteed payday loans cannot fund big needs

If you need a small sum of money, payday loans can help tide you over, but they might not back you when you need a lot of money. For instance, if you have taken up a home refurbishment project and you eventually realise that your renovation budget cannot cover all expenses,

Of course, you would like to borrow money, but payday loans cannot help you in this situation. Ho much you will need to take out a personal loan. These are also small loans to be paid off in a span of 6 to 18 months, depending on the size of the debt.

Since they do not involve collateral, a lender might be strict with their lending criteria. The chances of approval are higher when you have a decent credit file. If your credit rating is not good, you will likely end up getting a personal loan with slightly higher interest rates.

What if you struggle to get approved for even a small loan?

It is likely that a lender does not approve your application because your repaying capacity is not so strong. However, there might be so many other reasons as well for turning you down. One of the reasons is that you do not have a stable address.

A lender might suspect that you can move out at any time after committing a default, and it will be impossible to track you. To increase the chances of approval, you should take out guarantor loans for the non-homeowner from a direct lender.

A guarantor should have a good credit history and a permanent address. This will whittle down the risk of a lender. In case you make a default, they can call upon them to clear the dues. However, having someone as a guarantor can be quite challenging as your defaults will also affect your credit rating.

The best part is you keep your credit score in good condition and have your finances organised.

  • Pay off all your bills on time.
  • Set aside an emergency cushion.
  • Cut down on your spending.
  • Borrow money only when you need

The bottom line

No refusal guaranteed payday loan actually does not exist. It is quite obvious that no lender can give a guarantee to a loan without assessing your repaying capacity. You can choose regular payday loans if you need a small sum of money. However, in case of big expenses, you will need to apply for a personal loan.

If you still struggle, work out what you can do to improve your finances and credit score.

Description: No refusal guaranteed payday loans do not exist as a lender cannot be sure about your affordability without checking your repaying capacity.

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