Finding personal loans with bad credit can be a challenge. While some might make claims of guaranteed approval or no credit checks, direct lenders will say a number of things to attract customers.

The simple fact is, there is no such thing as guaranteed approval, and the same goes for claims of no credit checks 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 that a guaranteed approval is also a myth. 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 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 is not something lenders offer.  

Bad Credit Personal Loans Guaranteed Approval

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 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

The idea of guaranteed approval personal loans is almost laughable, since lenders would soon be out of business if they did not do some kind of verification about whether someone is a suitable candidate to lend money to. 

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. 

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 a personal loan 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 $300, $500 or $1000 you can be sure the lender would look at your employment status and other details to ensure that they might be repaid. Borrowing any amount for personal loans 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.