Payday loans are a great option for those in financial crisis. Companies that offer short-term funding tend to be more flexible and friendly than traditional lenders. They also have fewer requirements and expectations. The approval process may be quicker and your credit score may not be as important. Online payday loans can be an option for those in urgent financial situations. If you have more questions you can visit Oak Park Financial.
However, guaranteed payday loans are unlikely to happen. Even if all requirements are met, it is not wise to assume you will be approved for a payday loan.
You will often find websites that promise “guaranteed payday loans”. These loans are available regardless of your credit score or credit history. This is misleading as no lender can promise a loan. Although they may be flexible depending on your financial status and eligibility, this will depend on you as a customer. Be cautious if you are offered “guaranteed payday loan” by any company. There may be hidden terms that you don’t see.
Payday loans online can make you believe that you will be approved. These statements may be made by lenders, but it is possible that you will soon discover that this is not true. It could adversely affect your credit score because you have to complete the application in order to find out if there are any guarantees. It is best to research all options before you decide which loan would work best for your needs.
Why Shouldn’t You Expect Guaranteed Loan Approval With No Credit Check?
Knowing the true look of the loans will make it easier to distinguish between real and fake loans. Here are some hallmarks to help you distinguish real cash advances from fake loans.
- Distributed by a direct lender
- Short-term
- Additional fees for high-interest rates
- It is best to use in an emergency situation, and not as a long-term financial solution
- You can use it to pay for most expenses
Lenders take a chance by lending money to those with low credit scores. Online lenders can decline up to 80% of applicants if the loan is considered too risky.
You should expect no credit check to get a guaranteed loan approval. Lenders must be aware of defaults.
Why is it Impossible to Apply for Guaranteed Payday Loans No Matter What?
No matter what, guaranteed payday loans are not available to you. Underwriting is a process that involves checking your credit score.
There are some steps that you should take in order to get a payday loan if you find a lender who is a good match. These requirements could include, but are not limited to:
- A bank account that is active:
These accounts, whether they are a regular bank or a credit union, must be named by the borrowers.
- Evidence of steady income
An individual can prove income source and income through a variety of ways, including a regular paycheck at work; income from social insurance or disability benefits; annuity or inheritance.
- Identification
To prove valid identification, you can use a driver’s licence, a state ID or a passport.
Lenders will almost always deny loan requests if you don’t meet the requirements. You may not be approved for bad credit payday loans even if all the requirements are met.
Payday loans and scams
There is no guarantee that you will get a payday loan. It is better to be cautious and more alert when you believe you have found a direct lender for a guaranteed payday loan. You should be on the lookout to avoid scams and other questionable behavior.
- Emails or calls asking for financial or personal information are not acceptable.
- Pre-approval notices for loans without applying
- To secure a loan, you will be asked for a deposit or to pay a processing fee. When you apply for a loan, no legitimate lender will ask you to send money.
- To collect debt, use scare tactics, threats, and other illegal methods
- Threats of imprisonment or prosecution for debt
Fair Debt Collection Practices Act, (FDCPA), regulates the conduct and activities of debt collectors and loan agents. This law applies to debt collection agencies that attempt to collect debts owed to their clients.
How can you protect yourself from scams?
These are some tips to help you protect your finances and information.
- Take a look at the licenses of lenders. These licenses are usually displayed on the lender’s website. You can request a copy of the license when you apply for a loan.
- Don’t give out financial or personal information by phone or email. These questions will not be asked by legitimate businesses.
- Do not reveal your Social Security number or bank account information to anyone you don’t know.
- Scammers may try to get you a loan. Contact the authorities.
- If you are not asked to respond, do not answer.
- To make sure your finances are in order, check your credit score once a month.
Although some customers can get funding with quick approval, guaranteed approval loans cannot be trusted. These loans are not legitimate and should not be taken as a guarantee. You cannot be certain that you will get a loan even after you apply. Be wary of any lender that you suspect. Before you submit your information, do your research. If you are able to make informed decisions, identity theft can be avoided.