Even with bad credit, loans with guaranteed approval are an option for many.
While the idea of guaranteed approval for bad credit loans sounds great, we will attempt to explain why they don’t exist, why, and what to know.
Guaranteed approval bad credit loans are what you might call a little misleading because the idea of guaranteed approval of bad credit loans would suggest that all which apply would be approved. This couldn’t be further from the truth, since direct lenders would need to review any applications to decide whether they would allow you to borrow your loan request amount.
We work with many direct lenders for loans, even with bad credit, and we can assure you that approval is not guaranteed. While you might probably have a better chance of being approved when applying through us and the lenders we work with, it’s hardly a guarantee.
Since those that apply for bad credit loans might have less options like going to a bank or other types of lenders, some companies try to attract more customers by making claims such as guaranteed approval bad credit loans.
Guaranteed Loans for Bad Credit
While many that have bad credit can be nervous about applying for a loan, sometimes thinking there is no point and they wouldn’t be approved, some companies have taken to making claims about being guaranteed. It is important to understand that lenders would never be able to guarantee loans or they would not be in business for long.
You might come across mentions of guaranteed installment loans for bad credit and similar, but the fact is that when you apply for installment loans or payday loans, there is no guarantee. So when you come across guaranteed installment loans for bad credit direct lenders or similar, you should realize that all isn’t necessarily as promised. But as mentioned, you should know that when you apply through us and the lenders we work with, since we work with many you might find it to be a higher approval rate.
With all the claims of bad credit personal loans guaranteed approval and such it can be confusing, but the fact is that direct lenders do have to review each and every application to assess the possible risk of providing a loan and are interested to determine how likely it is that a borrower might repay them.
It stands to reason that people with poor credit would look for guaranteed loans, possibly out of frustration from hearing no a little more often than they might like. If not for anything else, it might be that people with bad or poor credit can really use the cash and might need money now in order to take care of whatever unexpected expenses or bills that need taking care of.
Lenders know that those with bad credit seeking a loan would probably not have a great credit score and therefore don’t do hard credit checks with the traditional credit check bureaus. Some people with bad credit seeking a loan also look for opportunities like installment loans no credit check but this too would be misleading since lenders do some kind of check before deciding whether to approve an application and allow you to borrow.
If you need fast cash, you might not be as concerned about where the money comes from when you have financial issues to take care of. But to make things clear, bad credit loans typically come with higher interest rates. If you had good credit, the rates would be lower and you would be able to shop around more, but since there is greater risk with lending to those that have bad credit and might not be repaid, the lender tries to offset the risk and cover any defaults by making it up with higher rates to balance things out.
Improving Your Odds of Approval for a Bad Credit Loan
While every lender has their own method of reviewing or evaluating a loan request, when it comes to those with bad credit many loans do not involve a hard credit check. The lenders often look at details like how long you have worked at your most recent employment, your salary, work history, along with understanding any financial commitments to get a sense of how likely you might be to repay the loan once you have borrowed. Most will lend up to $1,000 and you would often receive that deposited in your account as soon as the next day if your loan request is approved.
Unless you are approved by direct lenders for bad credit installment loans, which involve monthly scheduled payments rather than the entire sum on your next payday, then you might be more of a candidate of online payday loans for bad credit to help take care of your current financial needs.
The way to get started is complete the application, which should take a couple minutes, and you will quickly find out whether you have been approved and for what kind of loan. But keep in mind that bad credit loans guaranteed approval can be misleading and you should not expect this to be any kind of assurance for being approved.
As always, be a responsible borrower and ensure that you are confident that you will be able to repay whatever amount it is that you borrow when it comes due.