Savings Account Guaranteed Payday Loans
Although guaranteed payday loans aren’t typically hard to obtain, there are some requirements and some reasons that someone could be turned down. Until recently, some might have been turned down simply because they don’t have a checking account. That situation is not as common nowadays, partly because many online guaranteed payday loan stores can offer loans to people who don’t have checking accounts. Often a savings account will suffice, and in many cases it could even be the best option.
Actually, according to at least one cash advance company -- JTV Cash Advance
-- it’s actually better to lend to customers with savings accounts and no checking account than vice versa.
Many People Do Not Bank Often
The savings account guaranteed payday loans can be extremely popular for those who don’t bank often. Those who either don’t want a checking account or don’t want to burden their checking accounts for the payday loans can also find it popular.
If you must choose between a savings account or a checking account, keep in mind that the money sitting in your savings can be earning interest while you wait to repay your loan. The rate of return may not be very high today, but it’s still better than 0 percent.
Some checking accounts do earn interest, but that’s not as common, and most don’t earn as high a rate of return as most savings accounts.
Online Savings Account Loans Are Processed Quickly
Although there are physical stores that offer savings account guaranteed payday loans, it’s generally faster to have the transactions done online.
Generally savings account guaranteed payday loans are quick transactions, especially if done online. The funds can be deposited in the savings account within a few hours, or at most within 24 hours. The borrower can find out if he or she is approved within minutes -- all from the comfort of his or her home or office. You also don’t have to worry about much of the dreaded-paperwork hassle or faxes. Another advantage is financial. The loan amounts are capped so as to not exceed the amount of your paycheck, sometimes as low as $500, according to an article on ChristiaNet. The lenders often like the lower amount of risk even more than the borrowers do. The funds can be used for whatever you want.
The saving account guaranteed payday loans are becoming quite popular, according to BankLady, which states that there are about 65 million payday loans each year in the United States.
Types of Savings Account Payday Loans
One type of savings account payday loan allows the borrower to borrow against a percentage of his or her monthly income; and another type allows the borrower to have the money go directly to the savings account. These types of loans usually have higher fees than checking account payday advances, according to BankLady.
Bad Credit Is Not Usually A Concern
You probably don’t need to worry if you have less-than-desirable or even downright bad credit. Your credit history isn’t checked like it would be with a bank or credit union.
However, you could be turned down if you don’t have a job or if you have declared bankruptcy.
Keep in mind that you are receiving a loan, not free money. Plan to use the borrowed amount wisely and pay it back so you don’t risk the chance of having to declare bankruptcy later.
Requirements for Savings Account Loans Are Similar to Other Payday Loans
Although there are advantages to a savings account guaranteed payday loan, many of the requirements are the same as with other payday loans. You don’t need a checking account and you can still receive a loan with less than desirable credit, but you will need to provide some documentation. As always, you must be at least 18 years old, be employed, and have a bank account. You will need to provide identification, your social security number, and information about their direct deposit savings account.