Bad Credits, Or Who Offers Guaranteed Approval For A Loan?
If you are looking for personal installment loans, you have to know: there are organizations that promise providing of loans to anyone who wants to get it. As it is claimed in their advertisement, they give no credit check loans and do not even require credit scores. Such firms assure you of getting guaranteed approval for a loan, even in case of a bad credit history. There is a catchphrase that often goes on their promotions: guaranteed credit approval in minutes.
But is it possible for a credit to be guaranteed in the 100% of cases? Talking about a great sum of money getting approval will not certainly be easy. But if a borrower needs a small sum, likelihood of positive response arises.
So why doing no credit check lenders still give out money and benefit from it?
In this article you will learn a lot of useful information about bad credit and “guaranteed approval”.
What Is A Guaranteed Approval For A Credit Loan?
Guaranteed approval for your credit loan is an option of getting a loan without checks on any tickets. Thus, even clients with very bad credit scores or an existing credit can apply to it. Households that are unbanked and underbanked may also be interested in such guarantee.
Guaranteed approval is available with micro credits. Giving out a small sum of money they charge low interest on it. Total amount of a loan must be paid off within a very short period, aiming at client’s failed attempt of providing the money. Further, interest rate is likely to increase, and overcharge may be counted as well.
By doing so lenders hedge against cases if part of the clients cannot cover their payments. If a person knows about his bad scores, or has financial credits existing, he will probably pay attention to that opportunity. For many people such guarantee is the only chance to get a loan if they need money urgently.
But one should keep in mind that the words about a guaranteed approval remain just an advertisement aiming to lure customers in. Therefore, it is fair to say that 100% guaranteed approval for a loan is more a mythological rather than real.
Do Guaranteed Approval Loans For A Borrower With Bad Credit Score Exist?
Bad credit check is a reason for a refusal to providing a loan. That is why it would be fair to state that borrowers will not get 100% guaranteed approval. But still, there is a chance.
Loans With No Hard Credit Check
One acquire with a micro credit bureau. If client is aware of his past problem loans, he should make a choice of several firms. The more of them he checks, the more chances to get a loan he will have. Generally, the tendency is to be as follows – the higher interest rate and shorter term to repay a loan are, the more probable it is to get loans even having bad credit scores.
Why is the idea? Everything is plain and simple. By presenting such conditions lenders protects themselves from failure. Even if one client does not pay the amount, it will be repaid automatically with percentages from other borrowers. This is the place, where a trap lies in. Clients with bad credit score accept any terms offered. And as a result the amount they owe exceed their initial loan significantly.
Unfortunately, Promising “guaranteed Approval” Is A Trick
Guaranteed approval for your loan is a very powerful slogan. Of course, for people with very bad credit score it sounds like a single chance to get a loan successfully. In the majority of cases it is they who that advertising is rated for. Sometimes it is only an advertising tactic to attract potential customers to pay attention to, with no guarantees among companies real services to speak of.
But there are organizations that indeed pay no attention to their clients’ credit history. However, it is they that have the largest number of traps. Such lenders promise fast and simple cycle of formalization. Usually, they require no documents other than a passport. Ostensibly, it should seem that getting the money fast by this means may be a walk.
When it comes to loan repayment the truth turns out to be pretty different. Such credit stores set too short time limits for the repayment of loans. Initially, it has rather low interest level which looks like a very attractive in client’s sight. However, as soon as term expires, percentage rate increases exponentially. As a result, a total amount of payment turns out to be impracticable for a client.
Another bait is that often lender do not reveal this details to his client. He is provided with a contract in which such moments are spelled out in a small print or marked with the asterisk sign. One can even not pay attention to them, and then find himself in a sticky situation with heavy debts and debt collectors’ visits.
Types of Bad Credit Loans from Tricky Lenders
Today there are a lot of organizations that provide guaranteed credits with no credit score check. They offer different services – interest rates, ways of money loaning, terms of closing. People use their services when they are bond to say “i need cash fast” and, of course, when they have bad credit history.
Looking to get such emergency loan, borrowers often get into a trap. That is why one should apply only to time-proved companies. While falling back on such services it is important to get acquainted attentively with all the conditions of crediting.
Unsecured Payday Loans – What Is It?
This service is very popular. It attracts folk with the opportunity of getting a small amount of money fast and with no additional documents required. Loan formalization can be conducted both in a bureau office and online, without leaving home. Credit supply points are located in all cities in sufficient quantity, not to mention the Internet, which is always available.
A point to keep in mind is that maximum loan balance and the amount of loans available for one person differ from state to state. These conditions depend on your state law, it’s well-defined. Acquainting yourself with them in advance allows to avoid traps which lenders show as their organizations’ advantages.
Behind a demonstrative convenience and high formation rates payday loans have a lot of hidden nuances. Lenders provide quite short periods of time for the borrowers to replace the credit money. At that, loan interest rates are very high. Thus, one would be obliged to pay far more than the original sum borrowed in order to get such cash advance back.
Providing that one pays back a loan within a specified deadline, the amount to pay does not seem so scary. However, according to the researches, 80 percent of payday loan borrowers choose to stretch out the repayment of their loans. Accordingly, the expense of their loan rate accrues. The longer client struggle to pay back a loan, the more benefit lender gets.
Title Loans – Give Your Car To The Lenders!
Title loans are very common. Among such collaterals can be jewelry, technical instruments, estate property. But the most popular is a car title loan as 20 percents of borrowers choose such one-payment loans. Their advantage is the ability to get rather large amount of money in short-term. Besides, client can retain a car for a loan amortization period.
Title Loan: Secure or Not?
But are such payday loans going to be secure and reliable? Theoretically their terms do seem simple and clear. Nevertheless, the other side of the coin is quite tricky. The first nuance is that the value of your car would be estimated by lender’s representatives. And most frequently, a sum title loan lenders provide a borrower with is smaller than the car real cost.
That is, is a client fails to repay, he is going to bargain the car away to the lender. And that is to happen even despite on the part of sum has already been paid back including high loan interest applied. By delaying credit payment, car owner will pay a sum much greater than the real one.
All of the above work in lender’s favor as he benefits by any measure. That is why getting such loan is very easy. Your credit scores or the existence of opened credits – both are not sufficient factors for the firm that lends money. Though this is the most proven way to get cash fast, it would hardly be a secure loan.
Why “ability To Repay” Is Very Important
If you arrange a credit with a bank, ability to repay it is the key determining factor for its approval. However, in the case of micro lending the converse is true. It is beneficial for a loan holder if a client fails to pay his debt in time. For this reason an organization offers the most favorable terms with impressive loans.
Why Payday Loans Provided Despite On Bad Credit Scores Bring Lenders A Profit?
So why would they do that? If the client cannot repay a loan on time, he asks for postdate. Thus, one accrues his interest during the additional period of time. If this period is overextended, interest rate can exceed the amount of loan itself. To prevent this from happening creditors propose a pretty interesting scheme.
It consists of the following – the consumer is offered to apply for re-borrowing, amounting to greater sum, which would allow repaying the previous one without penalties. In the majority of cases one just does not have choice as otherwise he would have to pay the fine. With every new credit its amount and interest rate increase.
Payday Loan with Guaranteed Approval’s Consequences
Such payday loan can put the client into a debt prison, which he could never get out from, if only by selling some expensive thing, if having such. If no, the case can come to trials. To avoid that happening, one should make sure in his ability to pay a loan before applying for it.
Affordable Loans Instead Of Payday Loans With Strict Terms
Skip no credit check loans. Payday loans with guaranteed approval are attractive only at the first glance. They are always replete with a glossy buildup advertisement overwhelmed with concern about people. It normally tends to lay stress on stating this is the only way to solve actual financial problems. But that is only at the first blush.
Being convenient such loans can become only in case of money being paid back in shortest terms. But isn’t it obvious that a borrower is hardly going to obtain such opportunity? To avoid falling into the trap described above traditional loans should be used instead. The safest way to deal with them is to take it out at the bank. There you can obtain sparing terms, low interest rates, and flexible time limits to pay off the debts.
Nevertheless, it should considered that a loan will be given only providing a borrower proves his ability to pay the money back. Excepting for submitting certificate of income and other necessary documents, a credit check may become necessary
Soft Credit Check Lenders – Who Are They?
If there were no past or actual loans, the so-called soft credit checks may be performed under personal data checking procedure. It can be conducted without client’s privity. That is exactly the way to show whether he can pay back a loan in time.
The point of a soft credit check is that it does not influence credit score. This means that even if the borrower is refused to apply for a loan, it will not affect negatively his ability to receive a loan upon results of the next checks.
You should keep in mind, MyPayDayLoanCash will gladly assist you in becoming soft credit check lender for each of your clients.
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