Guaranteed Loans With Poor Credit
How to Pre-qualify
Many people across America have had credit issues for one reason or another. It is not uncommon, but when it comes time to borrow money they want a little security that they will be approved without a big hassle. Unfortunately there is no such thing as "guaranteed loans", that's just not how the world of finance works. It is not possible to guarantee any sort of financing without going through the traditional channels and requirements.
The closest thing you could expect to a guaranteed loan is a pre-approved loan.
How to Get a "Guaranteed Loan"
In order to get a guaranteed loan with poor credit you will need to pre-qualify. The process to pre-qualify for a loan is simple. Complete an application and you should know quickly if you have been approved. If you are pre-approved you should receive a letter or possibly a loan offer from the approving lender. If should directly reference how much money you can borrow and at what interest rates. Many loan offers will have an expiration date so you will need to react and decide if you want to borrow money based on their terms.
What Will Happen with My Poor Credit Score?
Having poor credit can be a real issue and hinder you ability to get approved for loans. It also means you will likely have to pay higher interest rates than a person with a good credit score. This is simply the system that has been adopted over time by lending institutions as a way to mitigate their risk. Borrowing money is a one way to improve your poor credit score and begin rebuilding. Starting with small loans and making payments on time will begin the credit score recovery process.
Will I Need a Checking Account To Get Pre-Approved?
Many lenders are flexible with their requirements and you can find loan companies that can work around many issues with your application. However, having a checking account is pretty universally necessary. Mainly because poor credit loan companies need a way to transfer the funds to you and your checking account solves that problem.
Checking accounts also show that you have some amount of financial stability. If you bank account has been open for a few years, then direct lenders feel more comfortable that you will be a lower risk borrower.
Can I Get a Pre-Approved Installment Loan with Poor Credit?
Many loan companies will give you the option to attempt to get pre-approve for an installment loan even if you have bad credit. We have found a few websites that offer this type of service. See the link below.
Getting a "guaranteed loan" is not realistic but getting pre-approved is possible. There are many lenders online that offer a pre-approval process. Many of these loan companies do not report your application to your credit, this will help by not hurting your credit score and making it worse.
How to Rebuild My Credit With a Loan
If you are looking to rebuild your credit you will want to carefully research which loan companies report to the credit bureaus. Many personal loan companies do not report payments to credit bureaus. But there are a few allow you to rebuild your credit by making timely installment payments.
How Much Will I Be Able To Borrow and at What APR?
Many lenders that offer pre-approved loan to people with poor credit offer loan amounts up to $10,000. There are many loan companies that operate online and they all have different criteria and loan terms. You should be able to find what you are looking for without too much hassle. Interest rates are also as unique as the lenders. Each company has their own business model, which means they have varying APR's. All interest rates and terms should be clearly marked on any loan agreements that you can read prior to committing to the loan.
Concluding Guaranteed Loans
When it comes to short term loans you are unlikely to find any company that offers a guaranteed loan. But there are many companies that offer a pre-approval process that you can use to determine how much you will be able to borrow and how much that borrowed money will cost you.
Updated: February 1, 2019