For bad credit borrowers, it can be something of a challenge to find a lender open to approving loan applications from them. Most lenders are hesitant because of the perceived risk, but this creates a marketing opportunity for online lenders. Offering a guarantee of approval draws interest, especially from those who are applying for unsecured personal loans with bad credit.
But can a loan application ever be guaranteed to get the green light? There are, after all, criteria to meet and affordability has to be proven, so surely a guaranteed loan approval cannot be a realistic offer. Nevertheless, the offer is commonly advertised.
Of course, for those in difficult financial positions, and in need of cash to deal with growing debts, the deal can be too good to pass up on. This is the trap that those seeking unsecured personal loans often fall into.
It is true that lenders have the right to offer loan guarantees, but the problem is when that promise is not delivered. For individuals applying for unsecured personal loans with bad credit, the chief benefit is the certainty of getting the funds they need. Failing to get it, can leave them feeling cheated.
If the issue of a guaranteed loan approval is carefully considered, however, it can never be seen as a realistic promise. No lender is willing to grant loans to applicants who have no ability to repay, or to individuals with a record for defaulting on their debts. If they did, they could not make a profit.
It is a different matter when it comes to secured loans, because the lender has access to collateral as compensation should the borrower default. But in the absence of any form of security, the risk in lending unsecured personal loans dictates that lenders be careful who they lend to.
Some lenders advertise no credit checks in an effort to attract more applicants. This is not the same as a guarantee, but does offer greater approval opportunities to those seeking unsecured personal loans with bad credit. With their poor credit histories ignored, they have as a much a chance as an applicant with an excellent credit history.
But there is a problem with this offer too, though not one in the same vein as with that of guaranteed loan approvals. Basically, there are certain conditions that applicants must meet, and the offer is typically available with limited loans. For example, most loans granted with no credit checks range between $100 (payday loan) and $5,000. slickcashloan Anything larger requires collateral as security.
Also, applicants must show they have sufficient income. So, while there is no interest shown in credit scores and past financial problems, details like employment status, income level and the debt-to-income ratio are important to get the unsecured personal loan.
While guaranteed loan approvals are something to steer clear of, there is also every reason to check out the reputation of all online lenders. It is a key method for those seeking unsecured personal loans with bad credit to protect themselves against dubious loan offers and unscrupulous lenders.
The best way to find out if a lender can the trusted is to visit either the Better Business Bureau or the Verify1st websites, both of which are designed to reveal the reputations of sites and businesses. The BBB grades businesses from A to F, so obviously only choose a Grade A lender.
However, even when a lender is given the all clear, check out the details in the small print of any loan agreement. This is where hidden charges on an unsecured personal loan can be found.
If knowing that a guaranteed approval is within your reach, you can relax a bit and take some time to find a car that suits your needs. There are some people that have applied for loans in the past, only to be knocked back time and time again. This could be because they have applied for more than what they could afford to repay, or because they have had a previous bad experience with their credit, that has now cause a serious blemish on their record.
In order to get a guaranteed car loan approval when you have a bad credit rating, you will need to find a lender that has a reputation for giving people a go, regardless of their previous history. Another way to get a guaranteed car loan approval is to make sure that you have all of the necessary documents organized beforehand and to make sure that you meet all of the initial requirements before applying. Although this may seem obvious to most people, some will attempt to fill out an application and leave out some of the necessary information. This causes a delay in the processing and will mean that they will more than likely not be approved for the loan they require.
If you are at least 18 years of age, have a regular job and income, have evidence in the form of payslips and bank statements that regular money is coming into your account and a drivers licence, it is possible that you can find a lender and get a guaranteed car loan approval. This is also the case for those with a bad credit history, so don’t despair if you need a new car and think you have no chance of getting a guaranteed approval. Make sure you have all of the necessary documents on hand before you start to fill out the form, and your chances of a guaranteed car loan approval will be much higher.
It is extremely important that you only apply for an amount that you know you will be able to repay. Some people work in the opposite direction and find the car of their dreams first. This can lead to disappointment when you aren’t able to get a guaranteed car loan approval for the amount you need, because it is out of your means. It would be a sensible idea to work out your finances first, have a look at your budget to assess your incomings and outgoings, then use some of the online auto loan calculators to work out an amount that is affordable. Once you have a ballpark figure of the amount you can afford to borrow, go ahead and find a lender and you will more than likely receive a guaranteed car loan approval. You can then use this guaranteed car loan approval to hunt down a new or used car that you would like to buy.
In order to get a guaranteed car loan approval, you need to have a plan, you need to get your documents organized beforehand and you need to have a look at a few different lenders to find a loan that you will have no trouble repaying over the term of the contract.