When shopping for personal loans, you may find all kinds of offers and promises made, many are often to lure people into applying. One example would be personal loans with guaranteed instant approval. Those making such a claim would be misleading and it’s important to understand the basics of why that is.
There is no such thing as ‘guaranteed instant approval’ from a reputable lender of personal loans and this should be taken as a sign that you should look somewhere else.
An offer of guaranteed instant approval for personal loans simply is not an option for lenders as it is obviously important that they are repaid. Such guarantees are appealing, and even instant approval can be a bit misleading. Any sort of claims like guaranteed personal loan approval direct lender or similar can be confusing and deceptive, but false statements like these exist.
It is possible to find lenders with near-instant approval, but this is most likely the case for those with excellent credit. For those looking for good, fair or bad credit personal loans, the process often takes a little longer as your application is evaluated.
Personal Loans Guaranteed Approval
When you need an unsecured personal loan for debt consolidation, major purchase or another reason, you don’t want to be lured by the promise of guarantees like instant approval or no credit check.
While the appeal of personal loans guaranteed approval is easy to see, especially if you have bad credit and find it difficult to get approved, it is important that you are cautious too. Some of the more important considerations when shopping for a personal loan include the terms, such as how long you have to pay it back along with any other fees, as well as the interest rates you might be charged for the loan.
If you are in the market for bad credit personal loans guaranteed approval 5000 you might find all kinds of potential lenders but it is important to do your homework. Not just comparing rates and terms but also some due diligence on the lender themselves.
Your credit history has a lot to do with what your personal loan options might be. For those with a credit score of 700 or better, most will find good terms and interest rates, unless their debt to income (DTI) ratio is too high and the lender thinks they might be a risk. For those with a fair credit rating in mid to high 600’s the cost of borrowing will be more on average, which can add up over the term of the loan.
Those with a bad credit score such as low 600’s or less often find it challenging to get a personal loan with bad credit that doesn’t have higher interest rates. The cost of borrowing is often indicative of the assumed risk to the lender.
For those with fair to poor credit rating, an installment loan might be an option to a personal loan. The installment loan is very much like a personal loan, with a few differences. The interest rate might be higher, the repayment terms might be shorter, and the amount available to borrow might be less. Terms are determined by the lender and should be carefully examined so there are no surprises down the road.
Pre Approved Personal Loan
The pre approved personal loan is essentially the same as personal loans with guaranteed instant approval. These types of claims are best to be cautious about since it would be impossible for a reputable lender to make such claims.
Reviewing a personal loan request requires a credit check, making the idea of pre approved personal loans a misleading way of some lenders to try to attract customers.
Personal Loans Instant Approval
Yet another fallacy would be a lending offering a personal loan instant approval. Much like offers of pre approved personal loans or personal loans guaranteed approval, it simply is not an option for any reputable lender to make such claims.
Any lender of personal loans suggesting pre approved, instant or guaranteed approval would be ones to avoid. All lenders need to review an applicant, starting with a credit check, so they can ensure they might get repaid any loan amount they allow someone to borrow.
While you can find personal loans with fast approval, any with guarantees of approval would be best to avoid and could be trouble for you later.