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Cobra Payday Loans – Quick Decision Loans Guaranteed
We’ve all been there. Those times when there’s too much month in the money, or an unexpected bill sends our carefully worked out finances reeling. A boiler can break down or a washing machine can dramatically stop working, and suddenly you’re left counting the pennies wondering how you’re going to make everything add up.
No matter how well you plan, there’s still unexpected shocks and surprises that can test your finances. If you don’t have emergency savings at hand, how do you get out of a financial tight spot?
How to get guaranteed payday loans
In short it’s not possible to have a payday loan that is 100% guaranteed, every lender must perform credit and affordability checks before approving a loan. But apply through us for some of the highest approval rates in the industry. Once upon a time getting a loan to pay for an emergency was practically impossible. Traditional lending options could take a long time to process, and unless you had an almost flawless credit record then there was little chance of securing one. Even if you met all the criteria, it could take weeks for the money to be in your bank. This is less than ideal if you have an immediate emergency to deal with.
In such circumstances, many people turn to direct lender payday loans to help them through a sticky patch. This they hope will get them the money they need quickly, and without the extra hassle associated with a traditional loan. If you apply through an FCA authorised credit broker, you can get a quick decision on your application, which is then matched with an appropriate lender for their approval.
Might guaranteed payday loans be the answer to your short term financial emergency? If they existed they could help as a short-term bridge until payday, or help pay for an emergency. Lots of people use them intelligently to get them out of a temporary fix, and get their finances back on track. If you’re looking for a guaranteed payday loan, what might you need to consider?
Are there really guaranteed payday loans?
No lender can 100% guarantee that they will accept your application for a payday loan, but the overwhelming majority of applications are successful. Many lenders have application to loan rates above 90%, which means there’s usually less than a one in ten chance that your application might fail. There are usually very particular circumstances why applications fail. Sometimes applications fail because of reasons completely unrelated to the applicant’s financial situation. These might include small errors in the application, spelling mistakes or omissions. So your form should be carefully filled in before being submitted.
But in most cases, a payday loan is almost guaranteed.
Why can’t lenders promise guaranteed payday loans?
Like banks, online payday lenders have to meet strict financial requirements. This means that they can’t make loans without conducting the necessary financial checks. While this means that payday loans can’t be completely guaranteed, you have the security of knowing you are borrowing money from a reputable lender, who believes you can repay the loan.
What benefits do a payday loan offer compared to other types of lending?
Payday loans have several advantages over traditional loans.
* They’re easy to access – perhaps the number one reason for opting for a payday loan is their simplicity and speed. The application process is usually straightforward, lending decisions are often made immediately, and the money is in your bank within 24 hours. Applications can usually be made online, and they’re available 7 days a week. No waiting for the bank to open on a Monday morning and still not knowing if your application will be successful.
In fact, the whole application process can take as little as five minutes.
* They have fewer requirements than traditional loans – when you apply you will usually only have to provide details of your bank account and debit card, proof of your address for the last three years, and evidence that you receive a regular income.
* Even if you have a poor credit history you can often still borrow – most traditional credit providers tend to reject high-risk applicants creating a circular problem, where people are unable to improve their credit record through responsible borrowing. People with no credit history at all can also find it difficult. Payday lenders carry out stringent checks on potential borrowers, but they have compensated for the higher risk by charging higher levels of interest. This means they can afford to accept applications that others cannot.
* Simple to manage – most payday lenders keep things very straightforward. You can usually opt to manage your loan online, making them easier to keep track of. If you make a payday loan application you are usually given an online account. Every time you log in to your account you can see the remaining balance left on your loan, manage your payments, overpay if you have extra money available and keep on top of things. If in the past you’ve had problems managing your money, can be a great way to learn or re-learn some good habits that will benefit you going forward.
* Early repayments reduce the amount you’ll have to pay – because payday loans are so easy to manage, and it’s easy to make over payments, you can reduce the amount of money you have to pay significantly. Even just a regular few pounds every month on top of your monthly payment can reduce the time you’re paying back the loan, and the amount you pay.
* Speedy cash in an emergency – the main reason that most people look for a guaranteed payday loan is to deal with a sudden financial emergency. Emergencies can’t wait. Cars need to be fixed to get you to work, broken down boilers have to be replaced. The money can be transferred to your account within minutes after a successful application is made.
* There are no restrictions on how you spend the money – once the money is in the bank, it’s yours to do with as you wish.
* A payday loan might save you money – a payday loan can help simplify your finances, reduce your debts overall and give you more control. If for instance, you’re about to miss your credit card payment, you might be liable for a £20 charge, if you use an unauthorised overdraft to make that credit card payment you might then be liable to more charges. It’s very easy for these kinds of late payment charges to add up and get out of hand. A payday loan helps you get on top of different debts, reduces the amount you have to pay overall and puts you back in control. A priceless feeling.
* Available 24/7 – because most payday loan applications are done online, you can borrow money at any time day or night.
* Regulated, trustworthy lenders – the payday loan industry is monitored by the Financial Conduct Authority. Before lenders can offer their services they have to register with the Financial Conduct Authority and meet several strict criteria. They can then be included on the Financial Services Register [https://register.fca.org.uk/]. This gives consumers confidence that they are borrowing money from a reputable lender.
* There are strict caps on interest rates – the FCA enforces a strict cap on the amount of interest added to any payday loan. This is set at 80p per £100 a day. This works out at around £24 a month for a £100 loan. Compare that to the charges that are applied to an unauthorised overdraft which may be as much as £100 a month on top of the £100 you borrowed. The FCA has also introduced a total cap which means that you can never pay back more than double what you borrowed. So if you borrowed £100, the maximum you could pay back is £200. In most cases, you will pay back a lot less. Overdrafts are not subject to the same cap, which means fees can keep spiralling, making it harder to pay back your overdraft in a timely fashion.
So if the benefits of a payday loan to help with an emergency are clear, how do you go about improving your chances of making a successful application?
Improve your chances of getting a payday loan
As outlined above, there’s no such thing as guaranteed payday loans, but the acceptance rate is high. There are a few things you can do to improve your chances further.
Check your credit history
Your credit rating is the most readily used measure of your creditworthiness. Lenders will check it to work out how likely you are to repay your loan. A low credit score means that you are a greater risk, but it’s less of a deal-breaker with payday lenders compared to traditional lenders. You can check your file online, and make sure that it doesn’t contain inaccurate information that might jeopardise your application.
Register to vote
Lenders need to be able to check that the identity and address you give them is legitimate. To do this they will usually check the electoral register. If you’re not on the register you can easily add your details to the register online [https://www.gov.uk/register-to-vote]. It’s one of the easiest and quickest ways to improve your credit score. It can take up to 8 weeks for your credit file to update after you’ve registered to vote. Therefore, if you think you might need to borrow money at some point, it pays to get registered now.
Check you meet the lending criteria
Even though some lenders trade under several different brand names, there are a wide range of lenders offering almost guaranteed payday loans. They all have different lending criteria, but there are several requirements you should meet if you hope to be accepted. You must be a UK resident with a UK bank account, your income should be enough to cover repayments on top of your existing outgoings and you should be able to pass the identity, credit and fraud checks.
Simplify your financial situation
If your debt is getting bigger it’s unlikely any lender will be willing to take a chance on you. Therefore it makes sense to pay off any existing debt if you can before applying. If you can illustrate that you will be using the loan to help get your finances back under control, lenders will be more sympathetic.
Shop around for the right lender
Different lenders have different lending criteria so it makes sense to choose one that best matches your own. If you make an application and it isn’t approved it can affect your credit rating, reducing your chances of future applications being successful. Before you apply make sure you meet the criteria and minimum requirements of the lender. With so many lenders how do you go about finding the right one for you when you need money quickly?
As an authorised credit broker we can help you find the right loan
One easy way to find the right lender for your is to apply through an FCA authorised credit broker. We can make sure your application is filled in correctly, and then match your application with the ideal lenders. There may be no such things as a guaranteed payday loan, but as an authorised credit broker we can improve your chances considerably. Applying this way ensures that you don’t inadvertently damage your credit history by making lots of unsuccessful applications. You won’t need to check the lending criteria of dozens of different lenders, and you’ll only have to fill in one form.
Know why you’re applying for a payday loan
Some payday loan companies will want to know your reasons for applying for a loan. Why do you need the money? What are you planning to do with it? Payday lenders are less likely to ask questions than traditional lenders, but it always pays to be prepared. Payday loans are best for short term emergencies, and covering sudden shortfalls. If you’re looking for funds for a home improvement or a holiday you’re less likely to be successful, and more appropriate sources of credit may be available.
Only apply for as much as you need
It’s always tempting to apply for a little extra cash to help pay for a few little treats, over and above what you need to help you through the current emergency. It’s not always a good move, however, as the smaller the amount you’re applying for, the more likely your application is to be successful. If you apply for the smallest loan possible, you stand a better chance of being accepted, you’ll pay a lower rate of interest and as you pay it back you’ll improve your credit history. Don’t make life more difficult for yourself by applying for more than you need.
Have your documentation ready
Unlike traditional lenders that can ask for a significant amount of paperwork, most payday lending applications take place online and usually involve no paper documents, or time-consuming phone calls. That doesn’t mean the lender might not ask for extra proof of identity and eligibility. Have your recent wage slips, bills and bank account details on hand just in case.
Some lenders might make use of account aggregation services such as Tink. This provides the lender with read-only access to your bank account details, allowing them to check your income and outgoings. This gives them a better idea about how you might afford repayments on any loan they might make. It also lets them monitor your ongoing financial situation, and they might offer help if your finances worsen or delay the collection of a payment if your salary is delayed.
Consider a guarantor loan
If you have a poor credit history and lenders are wary of lending to you it might be worthwhile considering a guarantor loan. A trusted family member or friend agrees to guarantee your loan if you default on your payments. This improves the likelihood of your application being approved because it’s backed by someone else. This gives the lender two opportunities to retrieve their money so you represent a lower risk than you would if you applied on your own. It does of course help if your proposed guarantor has a good credit history, and they will usually be expected to be homeowners.
Never rush your application
You might feel that you’re in the middle of an emergency and need to act fast, but it’s always better to take your time over your application. Spelling mistakes and omissions are one of the most common reasons why applications are rejected. Relax, get all your paperwork in order, check your credit history and be honest about your finances.
An authorised credit broker can help you with your application.
As an authorised credit broker if you apply for a payday loan with us your application will be thoroughly checked before it’s forwarded to suitable lenders. It will only be sent to lenders whose criteria your application meets, which immediately increases your chances of being accepted. We really understand the market and have helped thousands of applicants, even those with poor credit histories, secure the loan they needed.
There might be no such thing as completely guaranteed payday loans, but with our help, you stand a much better chance of securing one.
If you’re confused by the range of lenders and the application process, then applying through a credit broker might be the answer.
Start your application today and you can have the money you need in no time at all.
† No lender in the UK can guarantee any form of credit, but we will do our utmost to match you to a lender willing to lend to you.
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