Bad Credit Loans Guaranteed Decision on Loan Approval

If you have bad credit, can you get guaranteed approval on a loan?

Sometimes you need a little extra to get by. An unexpected expense could eat up your cash. A surprise shortfall in your take-home pay could make paying for rent hard. An emergency could require cash upfront. Whatever the case, sometimes you need to get cash, fast.

If you have good credit, making ends meet when your funds fall short is easy. You can take a cash advance on a credit card or get an extension.

However, things are different when you have bad credit. You have fewer options and the costs for getting a loan are often much higher.

Before you decide what to do, here is some valuable information about bad credit loans and the idea of guaranteed approval.

Do guaranteed approval loans for those with bad credit even exist?

The short answer is no. There are loans designed for people with bad credit, but there’s no such thing as a 100% guaranteed loan.

Instead, most people with bad credit may apply for loans with no hard credit check. These loans do not involve a hard credit check with traditional credit bureaus and many of them use alternative data outside of traditional credit scores to gauge your ability to repay.

With these types of loans, you’ll be required to make one or more payments to pay the loan back. You will also have to pay interest and other fees. Loan amounts vary by lender and generally include interest and other fees.

Let’s look at some of the different types of bad credit loans so you can get a better idea of your options.

Types of bad credit loans

When you need cash fast, you might not care where you get your money as long as you have as much as you need to cover your emergency, rent, or some other expense.

It’s a relief to know you can cover your bills—but be careful. There are some serious pitfalls to choosing certain bad credit loans.

Unsecured payday loans

With this type of loan, the lender uses your paystub amount to figure out how much they think you can borrow and repay. Also called cash advance, deferred deposit, or credit success loans, the amounts are small, and the repayment period is short.

You generally have to pay back the amount you borrow (and in most cases interest and fees as well) when you get your next paycheck—roughly two weeks to one month after getting the loan.

The amount you can borrow depends on the laws in your state. To get approved, you will need to prove you meet the minimum salary requirements. You could be denied if you don’t make “enough” or if you’ve bounced a check recently.

Payday loans can be a debt trap. If you can’t repay the loan on time or if you fail to repay it, you might be forced to roll the loan over into a new loan, adding to the cost of borrowing, and it happens a lot.

According to the Consumer Financial Protection Bureau, 80 percent of payday loan borrowers roll their loans over. With each rollover, the cost goes up making paying off the debt far more difficult.

Secured title loans

Secured loans are backed up by some type of collateral, like your car title. Because of this, they are also called title loans.

Like payday loans, title loans are a short-term borrowing solution. They are meant to help you get cash fast and they do not require a credit check, but they’re different from payday loans.

Instead of providing a pay stub like you do with a payday loan, you have to hand over your car title. The title loan lender will let you borrow an amount based on the value of your car.

The lender keeps your title until you repay your loan. You usually get 30 days, but some title loan lenders may give you a few months to repay the total as long as you make regular payments.

The big pitfall with this type of secured loan is that if you don’t pay back the money you owe, you could lose your car. Around 20 percent of people who take out a title loan will ultimately have their cars repossessed.

How to improve your odds of getting a bad credit loan

Fortunately, payday loans and title loans are not your only options. Even if your credit score is bad, you might still be able to get a loan. Many traditional lenders like banks and credit unions offer personal loans.

While you don’t have to have great credit, you will generally need to have better-than-poor credit. You may also be evaluated on the following:

  • Credit score
  • Amount of income
  • Monthly payments
  • Credit history
  • Payment history
  • Work history
  • Amount of debt owed
  • Number of credit inquiries

When you improve factors such as your credit score or your record of on-time payments, you increase your chances of getting a loan. You might also consider getting a secured loan, which means that you use something as collateral or add a co-signer.

LendUp can help

You could also consider a loan from LendUp. We have no hidden fees or roll-overs, and there is no hard credit check.

You may also be eligible to apply for larger loans at a lower interest rate over time and have the opportunity to build credit with the LendUp Ladder (where available).

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