To better understand guaranteed approval personal loans, let’s consider today the main features of these credit programs and how consumers, like you, can benefit from taking out such loans.
The Basic Features of Guaranteed Approval Loans
As their names imply, it is quite easy to qualify for and get these loans. After all, they’re specifically designed to provide bad credit consumers lines of credit they can use for financing their urgent needs and requirements. You can apply for a guaranteed approval loan to serve various purposes, particularly for covering your medical bills as well as the tuition fees of your children, for financing home improvement projects, and even for settling some of your outstanding debts.
Realistically looking at guaranteed approval personal loans
We get a lot of people looking for these loans, but they are not being very realistic. When these banks approve anyone, they have to protect themselves in some way. So if you have terrible credit, you may get approved, but they will not give you a HUGE line of credit. Many clients have scored in the mid 500s looking for someone to give them $20,000. That just won’t happen anymore. Prior to the financial crash of 2008, we actually did have lenders that would give large unsecured loans to people with bad credit. But after the crash, most of those lenders went out of business and the ones that survived are a lot more cautious!
If you need a loan over $5,000 you should look at applying for a secured personal loan. Many of these offers guaranteed approval also, but they are secured by your home, or car and the lenders feel more comfortable in lending large amounts since they have something securing the loan.
How to apply for a guaranteed approval personal loan
Finding these loans is simple. Just do a search using your favorite web browser or click here for our list of bad credit personal loans. Interested borrowers simply fill out an online application and they will generally know in just a few minutes if they have been approved.
These loans aren’t just quick to get you approved, but they will You can also receive the proceeds of your loan, the very next day. This means that if you need quick cash to finance an emergency then, applying for a guaranteed approval loan is the right way to go!
Ways to decrease the interest charged on these personal loans
Suppose you wish to enjoy a low rate of interest on your bad credit loan. What can you do to improve the interest rate being charged is to call the lender and offer a valuable asset as collateral for your personal loan.
Offering security will minimize the risk to the lender since if you fail to pay they will take your collateral. A few things to keep in mind would be:
- Ask for a larger loan amount. Let’s say online they were willing to lend you $5,000 but you have a paid off car worth $18,000 you are willing to use as collateral. Why not ask them for an additional $15,000 taking the loan amount to $20,000 with your car as collateral.
- Ask them for the better interest rate. Most guaranteed approval personal loans have higher interest rates because of the risk. You are now offering collateral, so request a lower interest rate.
- Ask them for a longer loan term. Most of these loans are 12 -36 months. With your collateral, you can ask them for a repayment term of 48 -72 months
Can Guaranteed Approval Personal Loans Really Work To Your Advantage?
Yes, they can, especially now that it is quite challenging to find and score affordable financing options if you have poor credit. In fact, guaranteed approval loans can turn out to be the only credit programs that can provide you the funds you need for covering an urgent personal or household requirement.
Some important reminders, though.
- Do your research. You don’t want to apply to just anyone. Make sure they have a good reputation before you apply.
- Know the rates and terms. While doing your research, find out the interest rate, maximum loan amounts, fees and application requirements
- Loans available in your state. You don’t want to apply to a lender who doesn’t do financing your state. Take the time to read their TOS. Remember you don’t want a hard inquiry on your credit report for a loan you can’t possibly receive.
- Watch out for scammers. We have been online for 20 years. And we have seen some slick scammers and some clumsy ones. But unfortunately, there are plenty of trusting people online. Or maybe desperate. Especially if their credit is a barrier to approval with most lenders. Steer clear of lenders offering a guaranteed approval loan w/ an incredibly low interest rate. Remember these loans are high risk. The banks make their money on the high interest rate.