What is a Guaranteed Loan?
Before applying for this or that type of financing, you should know that there is no such thing as a guaranteed loan. Each lender has eligibility criteria that must be met in order for your loan application to be approved. A guaranteed loan means that you can get money anyway, without having to meet the requirements. Why is there no guaranteed loan?
Every lender wants to have some kind of guarantee that the loan will be repaid on time. If the borrower does not meet the criteria, then most likely he will not be able to repay the loan on time. Thus, if you see a company that offers you guaranteed approval, you are most likely dealing with scammers.
Can I get a Guaranteed Loan from a direct lender?
No. As already mentioned, no lender, including a direct one, will be able to provide you with a guaranteed loan. However, there are types of loans that have a fairly large chance of approval. For example, if you apply for a Payday Loan, there is an 80% chance that your application will be approved as these lenders have minimum eligibility criteria.
However, always be careful if you see direct lenders who offer guaranteed approval.
How can I increase my chances of getting approved?
Even though there are no guaranteed loans, you can still get a loan even with a bad credit history. Please note the following points before applying for a loan:
- Examine your credit. Before applying, you should carefully examine your credit report for errors. Since your credit affects what interest rates you receive, it is worth making sure that there are no mistakes that could worsen it. If you still find errors, contact the credit bureaus.
- Get rid of debts. If you are already repaying any loan, it is best to pay off the debt before applying for a new funding application. Some lenders refuse loans to those borrowers who have unpaid debts.
- Compare offers. Since each lender has its own repayment terms and loan conditions, you must compare different offers in order to choose the one that best suits your wishes and needs.
- Review the eligibility criteria. Before applying, it is very important to study the requirements of the lender you have chosen. This way you can make sure if you are eligible to get a loan.
- Use prequalification. Now more and more lenders offer you to go through the prequalification procedure before applying. This way you will be able to see the potential interest rates and loan conditions you can get.
Can I get a loan with no credit check?
Yes, there are now a large number of lenders offering Payday Loans that do not require a traditional credit check. Payday loans were created to enable people with bad or poor credit to get financing and meet their needs. Typically, payday lenders do a soft or no credit check, which increases your chances of getting approved.
Will I get approval with a bad credit history?
Banks and credit unions often refuse to provide loans to people with bad or poor credit history, so your chances are not good. However, online lenders approve applications with almost any credit history.
For online lenders, the main factor affecting the approval of an application is a regular monthly source of income and the ability of borrowers to repay the loan. Thus, if you can prove that you are receiving regular payments and meet other requirements, then you will most likely get a loan.
Is it risky to apply for a No Credit Check Loan?
While Bad Credit Loans can help borrowers cope with a difficult financial situation, they can indeed be quite risky. Typically, short-term types of financing for bad credit, such as Payday Loans, have prohibitive interest rates that are very difficult to pay off. Typically, APR can be as high as 450%. If the borrower cannot repay the loan on time, then he falls into a debt from which it is quite difficult to get out. Thus, before applying for this type of financing, you must be sure that you can pay off the debt on time in order to avoid additional problems.
What are the repayment terms of Short Term Loans for bad credit?
Repayment terms may vary depending on the type of loan, state of residence and selected lender. Typically, the repayment period of a traditional Payday Loan is about two weeks. In some cases, loans are paid within 30 days (on the day of your next paycheck).
However, check the laws of your state and the lender's requirements before applying.
How do online loans for bad credit history work?
Such loans are popular as they are easy to obtain. All you need to do is compare the offers of different lenders and choose the one that suits your wishes and needs. After visiting his website, you will need to fill out a simple online application and provide basic information about yourself. As a rule, this does not take more than 5 minutes. If your application is approved, the lender will contact you to discuss the terms of the loan and its repayment. By signing the contract, you will be able to receive money to your bank account within one business day.
What are the benefits of online loan guaranteed approval?
Before applying for a loan, please study the main benefits of such loans and make sure that they meet your wishes and needs:
- Unsecured loan type
- Fast financing
- Simple online application
- Money directly to your bank account
- Bad credit is not a problem
- You can spend the loan for any need.