Same-day loans are emergency loans that are aimed at helping you tide over. These are small loans, and hence they are not difficult to manage. The repayment length of these loans is very small, usually up to a month, and repaid in a lump sum.
There are various types of emergency loans like payday loans, 15 minute loans direct lender, etc. All these loans are approved on the same day. As you cannot put off emergency expenses, these loans are signed off on the same day.
Once your application is processed, you get money directly in your bank account within a few minutes.
There are some people who apply for these loans despite a bad credit rating. Chances are your score is too bad that a lender becomes skeptical about your repaying capacity. This will make it a bit complicated for you to get approval.
Some emergency loans are advertised as guaranteed approval, but does that mean a lender will approve your application with a 100% guarantee?
Guaranteed approval does not mean “a 100% yes” to your application
Though some small loans are advertised as loans with guaranteed approval, it does not mean that a lender will not look over your repaying capacity. A rule of thumb says that a lender will run a credit check to see your past payment behavior.
It gives an idea to a lender about how likely you will commit a default. A good credit rating means low risk on the part of a lender, and hence you will enjoy lower interest rates. However, a bad credit rating will attract higher interest rates.
Regardless of your credit rating, there is no guarantee that you will get 100% approval. Your income is the prominent factor determining whether a lender will sign off on your application.
It is possible that you made all payments on time previously, but this time your current income is not enough to prove your affordability. Unfortunately, a lender will have to refuse you. Higher interest rates could increase the burden on your pocket if you have a bad credit rating.
Under both situations, a lender will assure you that you will be able to pay back the debt on time, along with other monthly expenses.
Guaranteed loan approval from a direct lender might or might not be possible. You will need to prove that you can afford to pay back the debt.
Borrowing less money could work in your favor
It is not surprising that you often ask for money beyond your affordability. This is one of the most common reasons why some lenders turn down your application. You should try to borrow less money.
Use the online loan calculator to get the estimated cost of how much money it will cost you. Now see if you will be able to pay down that cost along with your other monthly expenses.
You are good o go if your budget still has some wiggle room for more payments, as the actual cost will be higher than that. If not, try to reduce your borrowing amount.
The bottom line
Same-day loans, as the name suggests, are generally approved on the same day, but it does not mean that these loans come with guaranteed approval. No lender will lend you money unless you have a strong repaying capacity.
Though it is essential that you have a good credit score, you should have a good repaying capacity. It is the criteria that lenders use to decide your affordability. Use online calculators to see how much it would cost you so you do not borrow more than your affordability.
Description: Same-day loans are possible with guaranteed approval as long as you prove your repaying capacity. However, try to have a fair credit score.
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