Guaranteed bad credit payday loans are not quite what they seem. When you apply for a payday loan online, most payday lenders say that the loans are guaranteed and are instant approval.
This is not entirely true. Guaranteed bad credit payday loans are approved faster than other types of unsecured lending because no teletrack or credit check is carried out.
This means the payday lender does not have to approach one of the credit checking agencies for a full credit score report on the borrower; this type of check takes time.
Payday lenders do not carry
out credit checks in this way. What they do however is carry out status checks. This means they check you are who you say you are and the details match up to what you have put down on your online application form.
Consider payday loans as a funding source
Status checks by the payday lender may include calling up your employer to make sure you work there, they may call your bank to make sure you hold an account there or they may call people that you put as a reliable character reference.
Once these status checks have been carried out and documentation has been received such as a valid driving license or passport the guaranteed payday loan can be approved very quickly. Sometimes it is possible for payday loans to be approved within 24 hours.
A short video giving more information about payday loans:
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