When you’re in need of a loan, lenders consider your credit score to determine whether you are eligible or not. For people with bad credit, securing a loan is never an easy experience. This may leave you wondering whether loans with guaranteed approval for people with bad credit are actually available.
The short answer is personal loans for bad credit guaranteed approval don’t technically exist, but that doesn’t mean you’re out of options.
Sure, guaranteed loans for bad credit may be hard to come by, but even if you have bad credit, there may be other funding solutions available. We’re going over some of your options.
MoneyLion offers a service to help you find personal loan offers based on the info you provide. You can get matched with offers for up to $100,000 from our top providers. Compare rates, terms, and fees from different lenders and choose the best offer for you.
What are bad credit loans with guaranteed approval?
Bad credit loans with guaranteed approval are alternative financing options designed for people with bad credit who have challenges getting traditional loans. The term “guaranteed approval” can be misleading as no lender can truly guarantee approval regardless of your credit history.
Lenders consider factors beyond credit scores, like the borrower’s employment history and income stability. Because bad credit loans are risky to lenders, they typically come with high-interest rates and fees, which can increase the total cost of borrowing.
7 Options if you’re looking at loans for bad credit guaranteed approval
The loan approval decision ultimately rests with the lender and its criteria. Here are a few types of bad credit loans that you may qualify for.
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1. Online loans
Online loans provide convenience and accessibility, allowing you to apply for and receive funds without the need for lengthy paperwork or in-person visits to a bank or lending institution. Online loans often have faster approval processes and offer competitive interest rates, making them a viable option for those in need of quick financial assistance.
Although it’s impossible to determine whether you’ll have be able to secure a personal loan for bad credit with guaranteed approval, it can still be worthwhile to get an idea of what kind of financing you could possibly qualify for.
2. Earned wage access or cash advances
Cash advances, sometimes called earned wage access, are short-term solutions that feature a simple application process and minimal documentation.
They allow you to access some of your earned wages before your regular payday. This is typically done through a third-party financial service. Some employers may even offer this service to their employees.
3. Cash advance from credit card
Cash advances are essentially short-term loans against your credit card limit. When you take a cash advance, you’re essentially borrowing money from your credit card company, which is then added to your credit card balance. These advances usually come with higher interest rates and fees compared to regular purchases.
4. Credit-builder loan
A credit builder loan is a specialized type of loan aimed at assisting people in building or improving their credit history. Instead of receiving the funds, the loan amount is held in a savings account or a certificate of deposit. You then make regular payments on the loan over a specific period before accessing the funds.
5. Payday loans
Payday loans are short-term financial solutions for people who need cash quickly. To qualify for payday loans, you need to provide proof of income, such as pay stubs or bank statements. Borrowers typically must repay the lump sum amount on their next payday.
While payday loans can be fast funding solutions, they often come with significant risks. The interest rates or fees associated with them can be astronomical. Some even brand payday loans as “predatory”. It’s best to proceed with caution and explore other safer, alternatives to quick cash.
6. Peer-to-peer lending platforms
Peer-to-peer lending platforms can offer a viable solution for those with bad credit or even fair credit-seeking financing.
These platforms connect borrowers directly with lenders, often bypassing traditional banks. By leveraging the power of the crowd, lenders can assess borrowers’ creditworthiness based on factors beyond traditional credit scores, such as employment history, income, and payment history.
This can open up opportunities for individuals with less-than-perfect credit to obtain financing. However, they can often come with their own set of risks. Borrowing amounts may be low and there may be fewer regulations on interest rates and fees compared to solutions offered by banks or online financial institutions.
7. Secured loans
When applying for a secured loan, you need to provide some form of collateral as a guarantee for payment. If you fail to repay the loan as agreed, the lender has the legal right to repossess your item and sell it to recover the funds. Because these loans are secured, they often come with less stringent requirements.
Where can I find bad credit loans with guaranteed approval?
There aren’t really “guaranteed approval” loans, as all lenders assess risk before lending. Most bad credit loans are available from online lenders and through peer-to-peer platforms that connect borrowers to potential lenders who specialize in bad credit loans.
Some credit cards also are designed specifically for people with bad credit. Below are useful tips to you should keep in mind if you apply for any kind of funding.
1. Read customer reviews
Customer reviews can give you a glimpse into the lender’s reputation. Look for reviews on trusted websites or platforms that specialize in financial product reviews.
2. Compare different offers
The loan term, loan amount and interest rates vary from one lender to another. Comparing options can help you find the loan that suits your financial needs and offers the most favorable terms.
3. Seek referrals or recommendations
People who have already gone through the borrowing process can guide you based on their first-hand experiences. They can recommend lenders they have had positive interactions with.
4 Tips for increasing your chances of instant loan approval
Below are practical tips for increasing the chances of getting instant approval for personal loans.
1. Provide accurate information and additional documentation
When applying for a loan, provide accurate information and back it up with all the required documents. Make sure that you review the information for accuracy before submitting the loan request form.
2. Offer collateral or a cosigner
Providing collateral or applying for the loan with a cosigner may make qualifying for bad credit loans easier. Collateral, like a car, property, or savings, acts as security for the loan. And when someone with good credit cosigns your loan, you might get more favorable terms.
3. Start with smaller loan amounts
You are more likely to get approved for a smaller loan amount because the payments are more manageable. As you continue making timely payments, your credit score improves and your loan limit may also increase.
4. Have a stable income
Having a stable income assures the lender that you have the funds to make repayments. A reliable source of income acts as proof that you can handle the financial commitment.
Tips to consider when applying for bad credit loans with guaranteed approval
Unsure if you would get approved for a loan? Check your likelihood of getting a loan offer from one of MoneyLion’s partners with our approval rate calculator.
Below are important considerations when applying for bad credit loans.
1. Review the terms and conditions
Understanding the details of the loan ensures that you’re fully aware of the responsibilities involved in borrowing. You should especially pay attention to the interest rates, as they can add up quickly over the life of the loan.
2. Compare interest rates and repayment terms
These two factors have a significant impact on your ability to handle the repayments. You should therefore be aware of the loan rates and terms in order to assess the long-term implications of the loan on your finances.
3. Avoid scams and fraudulent activities
People in vulnerable financial positions sometimes are taken advantage of. Before sharing your personal information online, ensure that the website is secure with proper encryption.
4. Stick to a realistic repayment plan
Loans for bad credit can be expensive if you do not repay them on time. Before you try to apply for a guaranteed approval loan, have a practical repayment strategy in place to avoid getting into a debt cycle.
5. Work toward improving your credit score over time
A better credit score will help make it easier to access affordable loans. Some strategies to improve your credit score include paying bills on time and keeping your credit card balances low.
PRO TIP! Building your credit is easier than you think. It starts with knowing and understanding your score, creating goals, and then monitoring your credit as you take steps to build it.
Rebuilding your credit after getting a personal loan
Successfully repaying your personal loan requires financial discipline. First, create a budget to determine how much you can comfortably allocate toward repayments each month.
It would be best if you also considered setting up automatic payments with your lender so you can repay the loan on time. In case you encounter unexpected circumstances that make it difficult to meet your loan obligations, don’t hesitate to reach out to your lender.
Managing bad credit loans responsibly
Bad credit loans can be a real lifesaver when you need quick cash despite less-than-ideal credit history. But you need to approach guaranteed approval personal loans with caution and fully understand the potential consequences. When handled responsibly, bad credit loans can address your immediate financial needs and give you a chance to gradually rebuild your credit score.
FAQ
Where can I find personal loans for bad credit guaranteed approval online?
Note that personal loans for bad credit guaranteed approval online may not technically exist. If you’re looking for a funding solution online, MoneyLion offers a service to help you find personal loan offers based on the info you provide.
Can I get a guaranteed approval loan?
There is no such thing as a truly guaranteed approval loan. But that doesn’t mean you’re out of options. You could consider applying for online loans or a cash advance if you need immediate funding. Focusing on improving your finances for the long-term is the most sustainable solution.
Get I apply for fair credit loans guaranteed approval?
There are no truly “guaranteed approval” loans, even for those with fair credit. Having fair credit may give you access to more options than those with poor credit. While some lenders may use this term in marketing, all loans involve an application process and approval criteria.
