Guaranteed Loan Approval No Matter What

Good news for people with a bad credit score!

There are two types of situations where a person may need a loan: for the future and for emergencies. If you’re looking to buy a house in the next couple of months, or your kid will be off to college next year, you could start working on the loan with the hope to receive it when the time comes.

The other are emergencies. For instance you’ve had a medical emergency and need immediate cash for treatment, or your car broke down and you want cash to get it repaired, in such cases you’re looking for a guaranteed loan where there is no room for rejection. There are loans that have guaranteed approval even for people with bad credit ratings.

What is Guarantee for a Loan called?

A guaranteed loan is where a third party assumes the risk of the borrower defaulting on the loan. Guaranteed loans are generally payday loans; which are short-term loans handed out to people for their emergencies. These generally have a higher interest rate because of the risk of bad credit borrowers defaulting on the loan.

These are specifically reserved for poor credit borrowers who would be rejected a loan otherwise. To avoid that situation, a payday loan is granted on a high interest rate. This situation is a guaranteed loan approval no matter what.

Bad Credit Loans Guaranteed Approval

Payday loans are also considered as bad credit loans because these are specifically for people with poor credit. Not only do they get immediate cash for their financial emergencies, but also gives high risk borrowers a chance to fix their credit score. If they pay back their loan promptly, they could actually improve their poor credit.

Exploring Bad Credit Loan Options: Secured, Unsecured, and More

Secured and Unsecured Personal Loans: Secured loans require collateral, such as a house or car. This collateral ‘secures’ the loan. Unsecured loans, however, don’t require collateral, resulting in higher interest rates.

Payday Loans: These short-term loans are designed for emergencies. Loan amounts range from $100 to $500, and they often come with high interest rates.

Subprime Loans: Typically used for auto loans, subprime loans cater to individuals with poor credit who may not qualify for traditional bank loans.

Cash Advances: Cash advances are short-term loans accessed via your credit card. They are borrowed against your available credit limit.

Home Equity Loans for Poor Credit: These loans offer a lump sum of money upfront, repaid in installments. They use your home as collateral, which means your home is at risk if you default on the loan.

HELOCs for Poor Credit: Home Equity Lines of Credit (HELOCs) function like credit cards, allowing you to borrow as needed. They also use your home as collateral.

Bad Credit Loan Rates

Here are some of the rates for guaranteed loan approval no credit check direct lender.

LENDER BEST FOR: MIN. CREDIT SCORE EST. APR MIN. LOAN AMOUNT MAX. LOAN AMOUNT
Bad Credit Loans Poor credit scores Not specified 5.99%–35.99% Not specified $10,000
Upstart Limited credit history 600 8.69%–35.99% $1,000 $50,000
OneMain Financial Secured loans Not specified 18.00%–35.99% $1,500 $20,000
TD Bank Personal Secured Loan Credit building Not specified Starting at 5.67% $5,000 $50,000
Avant Unsecured loans 580* 9.95%–35.99% $2,000 $35,000
LendingPoint Flexible repayment options 585 9.99%–35.99% $2,000 $25,000
Upgrade Fast funding 620 7.99%–35.97% (with autopay) $1,000 $35,000
LendingClub Online experience 600 10.68%–35.89% $1,000 $40,000

 

Note: Sample rates have been extracted online, courtesy of BankRate.

The estimated APR according to FICO score range is as follows:

CATEGORY CREDIT SCORE PERCENTAGE OF PEOPLE IN THIS CATEGORY ESTIMATED APR
Excellent 800–850 21% 10.3%–12.5%
Very good 740–799 25% 10.3%–12.5%
Good 670–739 21% 13.5%–15.5%
Fair 580–669 17% 17.8%–19.9%
Very poor 300–579 16% 28.5%–32%

 

Conclusion

Mythbuster: No loan is completely guaranteed for every borrower. Even loans that claim guaranteed approval have specific lending criteria. Payday loans and other types of guaranteed loans are designed for those with poor credit.

Financial emergencies can happen to anyone, and it’s crucial to have options if your credit isn’t perfect. Traditional banks and credit unions often reject applications from people with bad credit. In these cases, payday loans and other guaranteed approval loans become viable options. These loans come with higher interest rates because borrowers with low credit scores are more likely to default.

To find the best loan for your needs, shop around. Look for lenders who not only approve your loan but also offer the best possible rates.

Tony Bennett

Tony Bennett

Tony Benett makes his living in the insurance industry by teaching and consulting. He is also recognized by the legal profession as an expert on insurance coverages. His insurance experience includes having worked at the company level, owned an independent general agency and having worked for an insurance association. He has received various certificates over the past few years and helps his clients and readers by giving them a realistic outlook on what they can expect to achieve within their set targets. At Insurance Noon, he is known for his in-depth analysis and attention to details with accuracy. He has been published as one of the most referred agents by his peers in the insurance community. Tony loves the outdoors and most sport events. His passion other than providing excellent advice is playing golf.