Payday Loans

How To Obtain A Guaranteed Payday Loan?

There are some very simple eligibility criteria that you must fulfill in order to obtain a guaranteed payday loan. For example, you must be a US citizen and at least 18 years of age. You must have a decent employment record. You must be employed with your current job for at least the last 3-6 months. Besides that, the most important thing is that you must also have a checking bank account in your name. However, there have also been instances where lenders approve payday loan applications for those who only have a saving bank account. But, when it comes to obtaining a payday cash advance, the eligibility criteria are not the only things that you need to take into your careful consideration; there are several other factors as well that you must work on. For example, it is very important for you to calculate in advance that how much these loans are going to cost you and whether you can practically afford to make the repayment within the set due date. Following is a brief rundown on it.

The Cost Of Loan

It is not very difficult to obtain a guaranteed payday loan. Even if you have bad credit and only have a saving account in your name, most lenders will issue you a loan happily as long as you meet the basic qualifying criteria. It is very important for you to keep in mind that the biggest security for lenders is your job. If you have a good employment record and you get a decent paycheck every month, the chances of your loan application getting rejected are very low. But, the cost of these loans is usually very high. Payday lenders charge the highest rate of interest in the loan market; the usually charge a 3-digit APR. That is the reason why these loans are considered as unconventional lending programs. In fact, because of the high cost involved with these loans, even the FTC (Federal Trade Commission) has termed these loans as ‘predatory’ and has warned consumers against it.

Very Short Repayment Period

If you are a salaried individual or a self-employed or a small businessperson with regular monthly income, you should not have any difficulty in securing a guaranteed payday loan. But, it is also important for you to keep in mind that the repayment period on these loans is usually very short. In most cases, you will be required to repay the loan within just a couple of weeks. Considering the high cost of these loans, it often turns out to be a very difficult task to meet the due date. As per the statistics, a large number of payday loan borrowers fail to make the repayment in time. The non-payment results in hefty penalty charges; besides that, you also become liable to pay additional interest for every single day of delay. This soon turns into a trap and you are pushed into a vicious cycle of payday debt. Therefore, while you are considering borrowing these loans, you must also look at your financial ability in a very practical way and decide whether you can make the repayment in time or not. If not, do not go for it; you will be in trouble.

Overall, though it is not very difficult to get a guaranteed payday loan, it is definitely not recommended.

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