Payday loans have fast become the go-to option for people in need of quick financing that they need to meet before their next paycheck. However, one of the fears that people have is whether or not they will get guaranteed approval when they apply for a payday loan.
Nonetheless, there are no assurances. While many lenders may advertise the promise of guaranteed approval, the reality is that there are certain requirements that you must meet to get approved for a payday loan. Here, we explore what you need to know about payday loans and the concept of guaranteed approval.
What You Need to Know About Payday Loans?
Payday loans are short-term, high-interest loans that you normally have to pay back on your next payday. They are usually small loans, typically between some hundred to thousand dollars. Payday loans are generally designed to provide you with immediate cash to help cover unexpected expenses. If this is you, you may consider applying for online payday loans with WeLoans.
To apply for a payday loan, you first need to provide proof of income and a checking account. The lender will then review your application and, if they feel you're qualified, give you a loan, which you will be expected to pay back on your next payday, alongside the attached interest and fees.
Should You Get Payday Loans?
Payday loans provide users with quick cash when they're in emergency situations, but there are risks to be mindful of. First, the interest rates attached to payday loans are mostly high, which increases the amount you have to pay back. In addition, if you can't pay back the loan, you may be subject to additional fees and penalties, which can quickly get out of control.
However, if you repay on schedule, payday loans can provide a helpful source of short-term funding. They can also be easier to qualify for than traditional loans, as many payday lenders don't require a credit check or don't place priority on credit ratings.
Is it Possible to Get a Payday Loan Without a Credit Check?
Generally, payday loan lenders from WeLoans conduct soft credit checks to conclude if you're creditworthy and can repay the loans they offer. These checks also help them determine the amount they're willing to offer based on your profile and history. However, you can very much receive a payday loan without undergoing a credit check.
It is important to note that a no credit check does not mean that your loan application goes entirely unchecked. Instead, lenders will only conduct a soft credit pull on your credit information and not the traditional hard credit check. This type of check does not impact your credit score, but they still allow lenders to see your credit history and assess the risk of lending to you.
With soft credit pulls, borrowers with a bad credit score stand a better chance of getting approved for loans.
How to Increase Your Chances of Guaranteed Approval for Payday Loans?
Considering the fact that there is no guaranteed approval for a payday loan, you need to put some things in place to increase your approval chances. Suggestions from WeLoans include:
Get the Basics
While each lender has their individual requirements, the general conditions common to most lenders include that you must have a stable income and show proof. Then, you need to be at least 18 years and present a valid government-issued ID.
Check out Multiple Lenders
To increase your chances of approval, consider applying to multiple financial institutions offering payday loans. Note that each application will require the lender to conduct a credit check. However, you don't need to worry since the direct lenders from WeLoans will conduct a "soft credit check" or "soft pull" for your payday loans, which won't affect your credit score.
Provide Accurate Information During the Application
Ensure that you only supply accurate information during your application process. This is because lenders typically check out the details, and any inconsistencies will lead to automatic disqualification.
Get a Cosigner
If possible, get a friend or family member with good credit that is willing to cosign your loan, as this may boost your chances.
Start Rebuilding Your Credit Profile
Ensure you only do things that will help fix your credit situation by ensuring you make your repayments promptly. Then, follow actionable advice from experienced specialists on managing finances and fixing credit issues.
Alternatives to Guaranteed Approval Payday Loans
While guaranteed approval payday loans may seem like an attractive option, they often come with high-interest rates and fees that can make them difficult to repay.
In their place, you can check other viable options for payday loans.
Personal Loans
Some lenders offer personal loans that may be a better option than payday loans. Also called cash advances, these personal loans typically have lower interest rates and longer repayment terms than payday credit, making them more manageable for borrowers.
Credit Unions
Credit unions are not-for-profit organizations that offer loans and other financial services to their members. They often have more lenient lending criteria than traditional lenders. Thus, they may be more willing to work with borrowers with bad credit.
Secured Loans
Secured loans require some collateral, like a car or a home. Since you have provided an asset, these loans become less risky for lenders, and thus, they may be easier to qualify for even with bad credit.
Family or Friends
If possible, consider borrowing money from family or friends. This can help you avoid the high fees and interest rates of payday loans. Also, none of the borrowings goes into your credit records, so they don't affect your credit rating. However, ensure to have a clear repayment plan in place to avoid affecting your relationship or hurting others.
Peer-to-peer Lending
Peer-to-peer lending involves securing loans from an individual or group rather than a formal financial institution. These loans often have more flexible terms and lower interest rates than traditional loans.
Final Thoughts
The idea of guaranteed approval for payday loans is more or less fiction. While payday lenders may advertise guaranteed approval, it is important to understand that this is not the reality. Payday loans, like any other loan, require a credit check and other requirements that you need to meet. However, if you worry about approval, you can check out other alternatives to payday loans that often have higher chances of you securing them.
