Finding personal loans with guaranteed approval for bad credit borrowers is often challenging, but some direct lenders can to help.
It’s worth mentioning that guaranteed approval is a misleading statement, much like claims of no credit check loans as well. A lender is taking a risk when allowing someone to borrow, and all lenders make use of some form of credit check. It’s for this reason that claims of a guaranteed approval loan is a bit deceiving. Direct lenders are not about to allow you to borrow if they see a problem and unlikely to get repaid.
All too often the messages of some direct lenders use with personal loans like instant or guaranteed approval are misleading. While they are often willing to provide a personal loan to someone with bad credit, guaranteed approval isn’t something lenders offer. A lender needs to review an application, and not every application is guaranteed to be approved, but even with bad credit many consumers will find that some online loans are a possibility.
Bad Credit Personal Loans Guaranteed Approval
When looking for a personal loan with bad credit, guaranteed approval can sound like the answer, but sometimes direct lenders of this type will charge higher fees. When you have bad credit, personal loans are usually not an option, but to qualify for installment loans is more likely. This is the more likely loan type that a lender might approve you for with bad to fair credit. While some might claim guaranteed approval or no credit checks, direct lenders will say a number of things to attract customers. They are what you might call a myth, since any lender that might plan to stay in business would need to review an application before handing out money. It’s so a lender can reduce the risk to themselves and increase their odds of being repaid what is borrowed. Since a personal loan is an unsecured loan, the lender does not have collateral if you are unable to pay, and relies on details like your credit history along with employment and salary info to make decisions about who to borrow to.
While already mentioned, it needs saying again. Personal loans and guaranteed approval are something that do not go together, despite what you might read. It simply doesn’t make sense to provide guaranteed approval for personal loans, and doesn’t really have so much to do with bad credit, and more about being repaid what is borrowed. Many that seek personal loans have bad credit, and direct lenders know this. Every lender is different, and some are more willing to take the risk, but direct lenders don’t necessarily do a credit check for every application they receive. Often they use different ways to determine or gauge the risk of loaning money to someone. These can include checking that you have employment, how long you’ve been employed, whether you own or rent, what your salary is, and similar considerations.
Most direct lenders of bad credit personal loans don’t do what is referred to as a hard credit check, which would involve one of the big 3 credit rating agencies or bureaus like Experian, Equifax or Transunion. For small dollar loans of unsecured loans, this is even less likely, and does not include guaranteed approval, no matter what you might read or hear.
Guaranteed Approval Personal Loans from Direct Lenders
There some direct lenders offering guaranteed approval loans, but this doesn’t mean that they are easy to find. To offer guaranteed approval for a loan application means you will accept anyone, regardless of their situation. There are many types of lenders that will consider applications of all types, and even if you are not employed but have a regular income you can find options like odsp loans and many others that might cater to your needs or situation. Finding guaranteed approval personal loans is difficult since lenders would have a difficult time to stay in business if they approved every application. You will find your chances of approval with lenders when you follow a few steps to help with your request.
What to do to help your loan application with bad credit:
- Answer all require information on the application
- Ensure you accurately complete of your application
- Avoid applying when you have other loans or heavy debt
- For many lenders, you should be employed, but some may consider benefits
- Meet any minimum income requirements the lender may have
Bad Credit Personal Loans from Direct Lenders
For many with bad credit the idea of personal loans from direct lenders that come with guaranteed approval is the sort of fairy tale that some dream of. With few options available, some have destroyed their personal credit rating by either defaulting on payments, having a poor repayment history, or a combination of both and possibly other issues. Direct lenders of personal loans might promise guaranteed approval, but this sort of practice by some doesn’t actually exist since practically every lender wants to ensure they will be paid back, and will typically validate employment and other things. While it isn’t a hard credit check in most cases, it is still a form of credit check that most lenders do. Many bad credit loans would be comparable to a cash advance or payday loans.
Bad Credit Personal Loans Guaranteed Approval
Finding a personal loan when you have bad credit is tough, even more if expected guaranteed approval. It’s a common misunderstanding that guaranteed approval personal loans exist, since lenders tend to review who they might borrow to, and hope to be repaid. By confirming a few small details from employment to residence the lender can determine who to lend to, and who is likely to repay a loan.
Bad credit is not all that uncommon and those looking for some form of personal loan or unsecured loan often have a less than stellar credit history. Some of the more common reasons that some might be interested in online loans can involve fixing their credit card debt or debt consolidation to lower their monthly payments and outstanding amount owed.
Persona loans with bad credit are possible, while guaranteed approval is unlikely. Finding guaranteed approval personal loans with bad credit from direct lenders is a bit of a myth. If you wanted to borrow $500 or $5,000 you can be sure a lender would look at your employment status and other details to ensure that they might be repaid. When borrowing money online of any amount for personal loans it makes sense from the lenders side that they try to eliminate risk and get their money back. Personal loans can be a good way to consolidate debt, improve the health of your credit rating, and debt to income ratio or other factors so that you increase your credit score.
Good Cheddar aims to clarify these types of questionable solutions, educate consumers, and works with many reputable partners. While we are not a lender, we are able to introduce and connect consumers with direct lenders for personal installment loans.