Category: Payday Loans

There is a lot of misunderstanding surrounding guarantor loans, so you will need to get your facts straight before deciding whether or not you actually want to get one. This type of loan can be an incredibly good option for a lot of people, so you will need to learn all you can. The more time you take to learn about these this type of loan, the happier you are going to be. Many people have benefited from guarantor loans, and you could be one of them.

No collateral is required

Unlike so many other kinds of loans, no collateral is required. This means that you won’t have to worry about risking your home, car or other valuable property to get it. Instead of collateral, there is a ‘guarantor,’ who agrees to pay back the loan if the primary borrower (you) is not able to pay it back for whatever reason. This will ensure that the loan is going to get paid no matter what. It is important that you take the time to find the right person to act as the guarantor for the loan though.

You don’t have to submit any documents

While it may be a little bit hard to believe, the fact is that you actually don’t need to submit any documents to get a guarantor loan. The person who acts as the guarantor will have to submit documents though, such as bank statements and proof of employment. The lender will only approve your application if the guarantor you picked out has good enough credit and makes enough money.

The funds are reliable

As long as you are borrowing funds from a credible direct lender, you can trust that the funds are 100% legitimate and approved by the FCA. You should try not to think about the business behind these financing solutions too much.

Your information will remain confidential

All of the personal information that you submitted in the loan application will remain confidential and secure at all times. These days all online lenders use sophisticated technology to ensure that all of their customers’ information is kept totally secure. It is important that you find the right lender though so you won’t have to worry about this.

A bank account isn’t necessarily

Despite what you may have heard from others, a bank account isn’t actually necessary to get a guarantor loan. Most of these lenders do offer a doorstep cash service, so you will be able to have someone come right to your house to give you the money from your loan. It is important to consider that most other kinds of loans will require a bank account, but not this one.

It won’t affect your score negatively

Simply getting a guarantor loan is not going to affect your credit score in any negative way, so you will want to keep that in mind. A lot of people are worried about this, but it just isn’t true. The only way that a guarantor loan can negatively affect your credit score is if you do not pay back the money you borrow. Even just paying back your loan late can mean suffering a negative hit on your credit, so you will need to remember that.

You can get a small or large amount of money

Depending on the qualifications of your guarantor, you may be able to get a small or large amount of money. One of the best things about this type of loan is that it’s so flexible. Whether you need $300 or $3,000, chances are you will be able to get it without any issues, especially if you have a solid guarantor.

Conclusion

A guarantor loan is a wonderful option for many people who need to borrow different amounts of money. Even if you have bad credit and have been turned down for other loans in the past, this can be an excellent option to consider. Not everyone who applies for one of these loans will get one, but there is still a good chance that you can. The more time and effort you put into researching guarantor loans, the better off you will be when it comes to getting the money you need.

Since there are so many different potential mistakes that you can make when it comes to getting a payday loan, it is important that you make a point of finding out what they are. The more you learn about these mistakes, the better your chances are going to be of getting the money you need without having to worry about getting ripped off or experiencing any problems. Most people are able to get the payday loans they need without incident, but some experience issues because they failed to fully educate themselves first.

Taking out a loan you don’t really need

If you do not absolutely need to take out a payday loan, you will certainly want to think twice about doing so. The fact is that interest rates tend to be fairly high with these kinds of loans, so you will therefore want to avoid taking one out if you can help it. There are some people who take out a payday loan so they can fund a vacation or go on a shopping spree, but you don’t want to make this mistake.

Taking out more than you need

Another common mistake that you will want to avoid making with payday loans is taking out more money than you really need. Taking out more money than you actually require is just a recipe for disaster, because it will make paying back your loan more difficult. If you don’t want to risk being slammed with some serious penalty fees, you should only take out as much as you need. The lender will only let you borrow as much as they think you can pay back within the amount of time given, but you will still want to keep this in mind.

Choosing the first lender you come across

You should also make sure that you select the right lender for your payday loan, because there are going to be a lot of options available. The lender that you choose will affect a lot of things, including your interest rate and the overall terms of the loan. There are a decent number of shady and disreputable lenders out there, which is all the more reason to do your homework. In the end you will be glad that you took the time to find the right payday loan lender to match your needs.

Being late on paying back the loan

The absolute last thing you want to do is to be late on paying back your loan, because you will end up being charged a lot of additional penalty fees. Your credit will also most likely take a hit if you do not pay your loan back on time. It is crucial that you know exactly when the money you borrow is due to be paid back so you don’t forget. Some people actually think that it’s acceptable to be a day or two late, but it is not. Your lender is still going to charge you late fees even if you are a day late.

Not providing accurate information in the application

Some people are tempted to give false information when filling out their payday loan application because they think doing so will increase their chances of getting approved, when in reality the opposite is true. If you give any blatantly false information your application, it will be rejected and you will have to submit another one. If you want to avoid wasting a lot of time, it is important that you are truthful about all of the information you submit on your online application.

Conclusion

Many people have benefited from payday loans, but it’s still important that you avoid making dumb mistakes like the ones mentioned above. A payday loan can be a great help if you are in a tight financial situation where you need a fairly significant amount of money quick. Whether you have a car repair, home repair or something else that you need to pay for, this type of loan is worth considering. As long as you remember to not make any of these mistakes, you should be fine. In the end you will most likely find that getting a payday loan was worth it.