Guaranteed Payday Lenders

In the last few years guaranteed payday lenders have sprung up on every street corner, or so it seems. They have a multitude of different names but offer the same basic services. Now guaranteed payday lenders offer the same services online that you can get at a local bricks and mortar location. This adds a level of convenience and privacy to the transaction that is impossible with a store front.

How Guaranteed Payday Lenders Work
If you are not familiar with guaranteed payday loans, they are short-term loans secured with a personal check or by allowing the electronic lender (for internet payday loans) to have electronic access to your bank account. If electronic, they use your bank information to deposit the loan and then withdraw the amount of the loan plus the finance charges.

Depending on the state, loans may be secured up to $1,000 and the typical loan period is 2 weeks. Finance charges range from about $15 per $100 up to about $30 per $100 loaned. In most cases, no credit check is done. The payday loans company requires personal information including the lender’s social security number, at least one reference, bank routing and account number and employment information.

For payment, 2 options are offered by guaranteed payday lenders. The loan amount plus the finance charge may be paid or just the finance charge may be paid and the loan itself is rolled over for another period.

When Does a Loan from Guaranteed Payday Lenders Make Sense
These loans are designed to be occasional, short term loans for emergency situations. Due to the heavy finance charge — applied in part because of the unsecured nature of the loans — they would only exacerbate economic hardship if relied upon frequently. Still, there may be circumstances in which loans from guaranteed payday loans are necessary:

• When missing a car payment would lead to repossession of a car needed for work or school.
• When your car needs to be repaired for work or school and you don’t have the money.
• When missing a mortgage payment or rent payment would lead to foreclosure or eviction.
• When missing a utility payment will leave your home dark, cold or without water.
• When emergency travel needs arise.

As you can see, each of these situations could be termed an emergency. They are also common situations that arise for many people from time to time.

Precautions Regarding Payday Loans

If you are considering a loan from one of the local or online payday loan lenders, do your best not to make a habit of it. Pay off the loan immediately if you have the money, rather than only paying the finance charge and extending the loan. Use these loans only in true emergencies and guaranteed payday lenders can help you cover gaps without becoming part of your financial challenges.