What are Guaranteed Payday Loans?
Personal and Corporate Finance
The sagging economy has done wonders for the popularity of guaranteed payday loans. This type of bad credit loan will help solve or at least relieve some of the immediate financial emergencies that are becoming more and more common. If you have very immediate expenses to meet that cannot wait or your credit score is not good enough to get a traditional loan guaranteed payday loans are for you. You do not need collateral or any type of security deposit. Nor do you have to lug boxes full of financial documents down to the loan office for them to review your entire financial history. Guaranteed payday loans can be obtained by simply filling out a simple online form and you will have your money within 24 hours.
Surprisingly the catches to these types of loans are few. You have to be employed and you have to have a checking account with direct deposit. You also have to be at least 18 years old. Some companies require that your bank account be certain age or have a certain number of transactions. If you have these minimal requirements however your loan, in amounts from about $100 to as much as $1500, will be transferred to your account on the next business day.
The main problem with these loans, and this may be a deal breaker for some, is the much higher interest rates. Payday loans can cost anywhere from 3%-10% higher that the Annual Percentage Rate (APR), which is what the banks usually charge. This means you will be paying the APR plus as much as 10%. On a $1000 loan that is about $1250 you have to return when you get your next pay check. For someone who is struggling to get ahead this is a very big extra expense to consider. This is why payday loans should only be used in dire emergencies when no other alternative is available and not for a night on the town painting the clubs green.
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