3274955487_766014dab1Do you have bad credit?  Are you looking for some quick cash due to an emergency or other reason?  If you need money quickly you know there are loans out there that offer cash within a 72 hour period, but are they the wisest choice?  We will look at payday loans to help you make the right choice.

What is a guaranteed payday loan?  There are payday loans out there that you can apply for, but you may not get.  These loans are dependent on a number of factors including your credit history.  There are also companies offering guaranteed payday loans, which mean almost everyone is approved.  In this situation as long as the person applying for the loan fits the qualifications of a payday loan.  The loan may or may not be for the entire amount that you require.

Instead it could be for a smaller amount.  This will be dependent upon your qualifications, but you are at least given a payday loan when it is guaranteed by the company.

What are the qualifications you must meet for the guaranteed payday loans?  This is a good question and you have probably just asked it.  The answer is that qualifications can differ from company to company.  However, there are certain aspects that tend to remain the same.  For example, one must have a job which they have held for six months or longer, be 18 years of age, have a checking account, and they cannot have any other payday loans or unpaid returned checks.

Most companies require the person to have a bank account open for at least three months.  Some individuals will get a payday loan and be unable to pay it back.  They close their existing checking account and then open up a new one to try and get a new payday loan.  Companies are aware of this, which is why they want a bit of a record when it comes to jobs and bank accounts.

The payday loan is based on your monthly income.  This is the reason the loan amounts can vary even with the guaranteed payday loans.  Payday loan companies are often unwilling to lend more than 50 percent of a person’s income.  In other words, just because you need $1000 may not mean you will get it even with a guaranteed payday loans company.  The company still reserves the right to offer an amount they feel you can pay back in a timely manner.

The good news is that the payday loans require credit checks. They may suspect your financial situation is less than stellar, but they will not run a check.  This will save you credit score points. Every time your credit is checked points are lost.  So, it can hinder your credit scores to have the check run by other companies.

Any line of credit you have is reported to the credit bureau.  Essentially, this means that while you are not being deducted on points for the qualification process it could hurt your credit scores in the long term.  If you fail to pay back the loan or take a long time to pay the loan it could reflect badly.  On the other hand, if you pay the loan on time and in full the company can report that you were in good standing.

Unfortunately, not all guaranteed payday loans companies will report to the credit bureau.  They do not have to.  The credit bureau knows that you have the loan, but the company does not have to report that it was paid or that the account was in good standing.  When a company offers to do this it is because they want to help you with your credit scores.

You may want to check with the payday loans company to see if they are willing to report to the credit bureau regarding your loan if you have bad credit, to help you with future credit checks.  Now that we have looked at how the loans can work, how to get them, and a little bit on the credit bureaus, it is time to consider whether the loan is right for you.  There are other solutions out there if you are in a tight spot financially.  The last thing you want to do is enter into a loan you cannot pay back and that will cost you high interest.

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