Guaranteed Loans to Rebuild Your Bad Credit

Are you suffering from bad credit? Having trouble making all your monthly payments?  Does your credit report show a lot of charged off debt?  There are ways you can start to rebuild and improve your credit.  One way is with a bad credit loan.  Here are some tips to keep in mind as you shop for the right loan.

A Guaranteed Approval Loan – What is it?

A guaranteed approval loan is also known by other names such as “fast loans”, “quick approval loans” or “bad credit loans“. These are short term loans that provide financial assistance for those who need it in a hurry.

Most of these loans are tied to some sort of collateral.  The most common type for consumers can be tied to your paycheck, if you are a business it can be your merchant account. There are also loans secured by real property such as your car, real estate, or other tangible property.

What Are The Requirements For Approval

Even if you have bad credit, you can still get  approved as long as you meet the  necessary requirements. The requirements are not at all complicated. Specific requirements may differ from one lending company to another but generally, lenders require an applicant to be:

  • of legal age (over 18)
  • have stable job or source or income
  • an active bank account.
  • some form of collateral (ex: real estate, car or pay check )

Credit isn’t an issue for these companies because of the collateral.  And that’s why some of them advertise their loans as a guaranteed approval loan. In fact, these loans are especially offered for people with imperfect credit history and for those who have not yet established credit history.


How To Use A Guaranteed Approval Loan To Rebuild Your Credit

Can a guaranteed approval loan help you rebuild your credit history? Yes.

Even though these loans are secured, they show up on your credit report and act as a “vote of confidence” to other lenders that you are now credit worthy.  The trick is to make sure that you make all your payments on time!  Even 1 late payment will not only cost you a lot in late fees and interest, but it will put your collateral used in danger of repossession and  show up on your credit report that you are once again starting to pay late.


If you took out a payday loan, then can quickly snow ball into a financial disaster!   Payday loans should only be taken out in EXTREME emergencies.  You should read the fine print about how long you have to repay the debt.  Some of them are as short as 2 weeks with huge penalties if you don’t pay it back in 2 weeks.  Some are as long as 3 – 6 months.

How to Obtain A Guaranteed Approval Loan

If you search the internet for guaranteed approval loans, you can find a long list of online lenders. Most of these loans you can apply for online and get an approval usually within 2 – 24 hours depending on the lender.

Nevertheless, even if it’s easy to get approved, a borrower must spend time exploring his options before making a choice. Take note that there are also fake lending companies and predatory lenders in the market. To avoid getting ripped off, you should do careful research and compare potential lenders.

Also, remember that each lending company has its own rates and fees. Some may impose unreasonably high interest rates on their customers. If you won’t take time comparing lenders, you could easily end up with the wrong company.

Don’t forget to check the history and background of the lending company you’re considering. You may also check from the Better Business Bureau if company there has been any complaint filed against the company.

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Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

  1. if the lender determines that their debt with your car loan is too high for their income, you’ll have problems getting the loan

    • Hi Angel, thanks for visiting. Yes, if it doesn’t look like you can easily payback the loan, the lender will deny you. That’s a good thing though! Who wants to take on a debt they can’t pay? Especially if its for a car. Not only will you have the stress of going through the collection process, but then they repo the car AND you still owe money. You should steer clear of some of the buy here / pay here car dealers. There are some that love to extend credit to someone who can’t pay and then they not only have you tied into a high interest loan, but they can repo the car and sell it again! Leaving you further in debt, a new black mark on your credit and NO Car. If you are being turned down for a car loan. Look at the reason why. If its too expensive, look for a cheaper car. If its your credit, take the time to improve it, wait 6 months and apply again!
      Good Luck!

  2. Perhaps 2 years ago the debt ratio was you needed at least 35% of your available credit free to use. I think in the current credit crunch its much higher

    • No C. Angel, its still 35% unfortunately a lot of banks have reduced peoples credit limits. So people who were well under 35% now look like they have maxed out their credit. Sometimes you can call them and see if they will increase it again. You may need to send them copies of your bank statements or last year tax return to prove you can support a credit line of that size.

      Good Luck!

  3. Generally speaking, the fastest and cheapest way to establish or rebuild credit is with a “secured” credit card. The process is that you open up an account with a bank and they give you a credit card for the amount of the account and use the bank account for collateral.

    • Hi Jamie, you are right! I always advise friends, family and even clients that if you are trying to rebuild your credit a secured credit card is one of the best options on the market. Not only do you get a line of credit that looks unsecured on your credit report, but the savings account you use as security is returned to you after a year or 2 of good payments. Some of them even pay YOU interest on the money in your savings account! Another great thing about secured credit cards is the fact that since your credit line is tied to your savings account, the more money you put in that account the bigger your line of credit.

      Thanks for visiting!

  4. I would think about unsecured business loans they help rebuilding credit much better than a credit card I think, there are less variables compared to a credit card line of credit open available etc. With loans you either paid it on time or you didn’t.

    • Hi Davegs, that’s for visiting! Business loans are a bit harder to get approved for than credit cards. That’s why so many people go that route. Also whether you pay your loan or credit card late, it shows up on your credit report. A late payment is a late payment.

      Pls continue to visit! I see you have commented on several articles! Thanks for joining the community!
      Happy Holidays!

  5. I’d do the same and get a secured credit card to rebuilt credit. To get a loan these days requires that you have good credit, equity, a stable job, pretty much you have to have say 10 out of 10 requirements when in the past if you had a job it seemed you could get a loan. Getting an unsecured business loans these days is nearly impossible unless the bank see that you can pay it back and they are 100% confident in they’ll get their money on time.

    • Hello again Davegs!
      Yes a secured credit card is the best for rebuilding credit. And unfortunately with the current financial crisis banks aren’t willing to take big risk anymore. If you need business financing, you really need to make sure you improve your credit. If the bank thinks there is any kind of risk they will say no to an unsecured loan. If you have collateral like Real Estate or business equipment, you have a better chance of approval. In fact we provide equipment leasing to our business clients. It provides for financing of business equipment ONLY. But the credit requirements are flexible and approvals easy to get even with bad credit.

      Hope you had a great holiday!

  6. I was wondering if taking out a loan would help rebuild my credit ? Chris

  7. The Only true way to build your credit is get a copy of your credit file, then contact each creditor and pay them, pay the little ones first, then tackel the big guys you will soon be debt free. ALL THESE GIMMICKS AND QUICK FIX PROGRAMS DO NOT WORK. IT ALL COMES DOWN TO BASIC ADVICE…PAY YOUR BILLS

    • even if you pay old dept it stays on your credit report. unless you contact who you owe and get it in writing that the item will be removed. and dont pay it until you have it in writing

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