Guaranteed Bad Credit Payday Loans

Many companies offer guaranteed payday loans to people with bad credit because payday lending is a big and very profitable business.

A payday loan is simply a loan that a borrower agrees to pay off on his or her next payday, hence the term payday loan. These loans are often offered by check cashing businesses to help people with limited incomes who need cash fast.

Many online lenders have gotten into the payday lending business in recent years because it is very profitable. Some pawn shops also make payday loans and there are dedicated payday lending businesses.

What is a guaranteed loan

Payday lenders often advertise guaranteed bad credit loans or guaranteed loans. This simply means that they will lend money to people who have a verifiable source of income such as a job, a pension or a regular government benefit payment.

Those who don’t have a regular source of income are out of luck because most payday lenders only lend to those who can verify their income.

Online payday loans

The way online payday loans work like regular payday loans except that they make a direct electronic payment of funds into a person’s bank account. This can eliminate paperwork and speed the loan process.

Most online lenders will take the money used to repay the loan out of the bank account. The borrower signs an agreement that states the money will be available in the bank account on a certain date. Some online lenders will wire money to a borrower via services like Western Union and Money Gram.

Check loans

A related loan to a payday loan is a check loan. A check loan which is sometimes advertised as check into cash is simply a loan in which a check is used as collateral for a loan.

The borrower writes a check for the amount of the loan plus the interest and fees. Then the lender holds the check until a certain date and cashes it. The borrower agrees to have the money needed to pay off the loan available in the bank account on that date.

Related services

The companies that make payday loans often provide a wide variety of other services to the public. These include check cashing, bill pay, prepaid credit cards, money orders and the wiring of money. Many payday lenders will cash pay and government benefit checks.

Some of these companies will also issue prepaid credit cards which are loaded with money.  Money orders which people without bank accounts use in lieu of checks are also available at many payday lenders. 

Most payday lenders also let people wire money via services like Money Gram or Western Union.  Some of them also make an electronic bill pay service available.