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What are guaranteed loans for bad credit?

When you apply for loans, the lender will need to conduct certain checks and then approve or disapprove your loan. Irrespective of your qualifications you can never be sure if the lender will approve or disapprove your loan. However, some lenders advertise “guaranteed loans for bad credit” and “guaranteed loans direct lenders”.

These only mean that irrespective of your qualification, you will still get the loan. That means that even if you have no credit history, bad credit score, no bank account, or unstable income, you can still get access to the loan. Can this be real? Do such loans really exist?

The truth is that there are no guaranteed loans since the lender will consider other factors even if they decide not to grant loans based on your credit score. Most lenders disburse the cash through your bank account hence you will need to provide an active bank account before you will be approved for the loan.

The lender may also request for a minimum income requirement and you will need to meet this to get access to the loan. In short, lenders will need you to meet at least one of the requirements to get access to the loan. That means that there is no guaranteed approval.

In fact, some websites that advertise guaranteed approval are not legitimate and they use such attractive words to get people to apply for their loans. It is important to watch out for such lenders as well. When you apply for such loans, you will need to be cautious.

If a lender requests for upfront fees before he actually offering you the loan, you will need to avoid that lender immediately. This is because such lenders are outright scammers.

Although there are no guaranteed loans, there are lenders who are likely to grant your loan requests even if you have a low credit score or you have no credit history. Most of these loans are payday, personal, and installment loans.

How to apply.

The application process is simple. You will only need to meet some basic requirements to get access to these loans. Although all lenders have their requirements, most of them run through and once you meet these requirements, you can easily get access to the loans.

  1.    You will need to be a citizen of the United States.
  2.    You will need to be at least 18 years old.
  3.    You will also need to have a reliable source of income.
  4.    The lender will also request for an active checking account.

The good thing about these loans is that you can apply from the comfort of your home. You can apply at any time since the entire process is online. Once you have access to a computer and internet, you are good to go.

You should also get your bank account details, employment details, and personal information ready before you begin the application process. You can fill out the form very quickly and when you submit the application, the lender will get back to you.

Interest Rates and Loan Repayments

The lender will inform you about the loan rates and fees. Although lenders do not charge the same rates and fees, there are some fees that you are likely to pay when you apply for the loan. These fees include origination fees, prepayment fees, processing fees, and late fees. Fees such as late fees can be avoided if you repay your loan on time. You should note that not all lenders charge these fees.

should check all these before applying for the loan. You should also know the total amount you will be paying at the end of the loan period. If you are applying for a payday loan, the loan term is usually 30 days and you will need to make a one-time payment.

Installment loans have loan terms that depend on the loan type. If it is a short-term loan, you will have the option of paying back the loan in 3 months to 5 years.

With loan repayments, there are several methods of repaying the loan. The lender may ask you to set up an automatic loan repayment where the lender will charge the money directly from your account. This method is highly recommended if you have an installment loan.

This is because you will not default on your loan even if you forget the due date. All you need to do is to leave cash in your account before the due date. The lender will pay the cash on your behalf. There are also options to pay the loan by check. You can choose the one that is most convenient for you.

Terms and Conditions

It is important to read the terms and conditions before you apply for the loan. Reading the terms and conditions will help you to understand the loan terms better.

When you want to apply for a loan, look for lenders that provide soft credit checks when you apply for a loan. Soft credit checks do not affect your credit score and you will know if you have been approved for the loan or not.

While no credit check lenders do not care if you have the ability to pay the loan or not, soft check lenders do. They will only grant you loans that they are certain you can pay back.

This means that you will not easily get stuck in a debt cycle if you get a loan from soft credit check lenders. The truth is that it is very difficult to get out of a debt cycle when you get stuck in one. You may end up accumulating debt that is 200% more than the cash initially borrowed.

You can also help yourself by ensuring that you borrow within your limit. You should also make sure you repay your loan on time so that you do not end up destroying your relationship with the lender as well as your credit score.


Sharon Kirschner

Lindsey is a financial consultant and blogger who mainly writes about personal loans and money management. She already has a number of articles and blog posts about the subject and continues to post more about the best tips and tricks on these topics.
Sharon Kirschner

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