Are Guaranteed Payday Loans a Rip- Off?
Guaranteed payday loans are not a rip-off. To understand why they are not, you must first understand the risks a lender takes.
Guaranteed payday loans do not require the borrower to have good credit. In fact, borrower's that apply for guaranteed payday loans will not even have their credit report reviewed by the lender. Your credit score and credit report have absolutely no bearing on the decision a lender makes on approving guaranteed payday loans. Lenders will require the borrower to provide some general information like their name, employment history, contact phone number, identification, proof of residency, and banking account information. The borrower must be at least 21 years old and have a solid work history of at least six months at the same employer. Lenders will also require a checking or savings account to be able to transfer the money into.
Guaranteed payday loans do not require the borrower to place any type of collateral for the loan. Many loans will require collateral such as your vehicle, your home, or anything considered of value. Loans that require collateral are often referred to as secured loans. Secured loans can take several days and even weeks to be approved for and guaranteed payday loans can only take hours.
Lenders that offer guaranteed payday loans takes somewhat of a higher risk when borrowing money. They do not have any type of collateral for security, they advance cash to individuals with really bad credit, and they provide you with the money in 24 hours or so. The risk they take justifies any fees that accompany guaranteed payday loans.
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