Guaranteed Approval Loans

Reasons to Get a Guaranteed Approval Loan

There are a few reasons a guaranteed approval loan would be a good choice. Some of the reasons include;

You have poor credit 

A low credit score can make it difficult to secure a loan. Bad-credit lenders however do not consider the credit scores of borrowers. They offer guaranteed approval at fast rates regardless of the state of the applicant or borrower’s credit score. If you have bad credit you should consider getting a guaranteed approval loan.

You do not want your credit checked

Bad credit history or no credit history is another limiting factor in securing loans. If you have applied for multiple loans within a short period of time, multiple inquiry notices will show up on your credit report. Most lenders will not approve a loan for an applicant who has no credit history or one with multiple inquiry notices. Credit inquiry notices often remain in your credit report for a long time, making getting future loans difficult. If you do not want your credit history checked, a guaranteed approval loan is a suitable choice.

Types of Guaranteed Approval Loans 

Emergency loans

If you are in need of a loan to resolve an unexpected expense, consider getting an emergency loan. An emergency loan is a personal loan that you can take out to cover emergency expenses such as medical bills and vehicle repair bills. How fast the loan gets deposited into your account depends on the lender. You can get the funds the same day you apply for the loan. In other instances, you may have to wait 24 hours or a few days to receive the funds.

Personal Loans from an Online Lender

Online lenders are becoming more popular by the day. This is because they offer guaranteed approval of personal loans within a short time. The application process is shorter and most times just requires applicants to fill an online application form. Most online lenders specifically offer loans to people with bad credit. Some online lenders however consider the credit scores of borrowers. Applying for a personal loan from an online lender is easy, fast and guarantees approval plus you don’t have to through unnecessary stress as in getting loans from traditional financial institutions or banks.

No-credit-check loans

A no-credit-check loan is a personal loan for individuals who have bad credit. No-credit check lenders do not consider the credit scores of applicants and offer guaranteed approval on loans. Since the criteria to apply for a no-check loan, the approval rate is faster. While a no-credit loan guarantees approval, you may be charged higher interest rates and fees if you have bad credit.

Payday Loans

Payday loans are short-term loans that are to be paid back by the borrower’s next payday. Payday loans are guaranteed approval loans because it involves no credit check. A payday loan involves interest rates and fees and you should make sure to pay back your loan in due time to avoid incurring more financial debts.

Cash advance from a credit card

You can get a cash advance from your credit card. A cash advance works such that rather than buying goods or services with your credit card, you instead get the cash. A cash advance can be up to a few hundred dollars and you only need your credit card to have access to the funds. Cash advances are easy to get and do not require paperwork. However, in paying back a cash advance there are other additional charges attached to it such as; bank or ATM fees and interest charges.

Local banks and credit unions

Local banks and credit unions offer guaranteed approval loans to their customers. Generally, banks and credit unions offer the best rates and the total cost of borrowings from a bank is usually low. Basically, as a customer, you get added advantages based on years of relationship with your local bank. You may also receive additional APR discounts. Some banks and credit unions offer flexible payments methods to their customers as well. You can borrow a personal loan from your local bank or credit union to cover unexpected expenses or for other reasons. Note that a bank will not approve your loan if you have bad credit. 

401(k) loans

A 401(k) is a retirement loan that allows you to borrow money from your pension. A 401(k) loan is a guaranteed approval loan as you are basically borrowing money from yourself. It offers the lowest rates and you are not required to pay taxes on your loan. It is different from a retirement withdrawal because in this case, you are to pay back the loan. The best part about a 401(k) loan is that interest charges on the loan go back into your retirement account. If you miss a payment, your credit score is not affected but you should be careful not to dig too deep into your retirement money by taking multiple 401(k) loans.

Advantages of Guaranteed Approval Loans 

Easy Application

Application for guaranteed approval loans are very easy and take less than 30 minutes to complete. This is because the criteria for application are basic and you do not need to go out of your way to get certain documents that would be considered fundamental when applying for loans from traditional financial institutions.

Versatile Requirements

Guaranteed approval loan lenders consider other factors to determine the eligibility of applicants. Instead of placing emphasis on credit scores, applicants’ eligibility is based on other factors which may include; employment status, income, and debt-to-income ratio.

Conclusion 

Guaranteed approval loans are great in cases of emergencies. Keep in mind that different guaranteed loan lenders determine their own interest rates and charges. Find out all relevant information about a guaranteed loan lender before applying for a guaranteed approval loan.