A Detailed Look at Bad Credit Loans
Loans with guaranteed approval are generally the same as other payday loans we are used to. They come with a faster and simpler registration process while lenders do not consider credit checks as the major tool to evaluate risks and borrowers’ creditworthiness. It all results in fewer worries and troubles when applying the sum, you need.
The features are almost the same as with other cash advances. Here are some core issues that define this particular loan type:
- The Amount – it is defined by the state regulations and is generally somewhere between $200 and $800. Some companies offer bigger sums. However, you should check if they meet state laws.
- The Term – these loan types are provided as short-term assistance. It means that the repayment period usually does not exceed 30 days. As a rule, it starts from about 2 weeks depending on the agency and sate where it operates.
- The Application – a fast and simple procedure that can be completed both live and online. It includes several steps where a user will have to fill in the info and provide some copies if necessary.
- No Credit Check – as a rule, the process involves soft or no credit check. While you mainly apply for a short-term loan, these aspects do not play a vital role. Lenders pat more attention to your salary, working experience or employment rather than debts from the past.
- Guaranteed Approval – poor credit will never be an obstacle on the way to your financial freedom. You are definitely to get the sum you need.
Apart from obvious advantages, fast loans come with the one and only downside. It includes huge APR rates and additional fees that may be charged when opting for brokers instead of direct lenders. On the other hand, you are always able to choose a company with suitable rates and conditions. Simply do not rush for the first website you come across on the Internet. Do the research to compare all fees. Wagering policies, etc.
Great Solution for Emergency Situations
Short-term loans were initially designed to provide instant help. They have proved to be a great instrument when fixing a customer’s financial crisis. At the same time, it works well only in extreme situations. If you have a chance to cope with the problem without borrowing, you’d better do so. If you are put in a tight corner due to bad credit or other obstacles. Loans with guaranteed approval might appear to be the only solution.
How Bad Credit Loans Work
The process hardly differs from getting another type of same-day or personal loan. At the same time, unlike installment loans, you do not have to oppose the value with your auto or house. Lenders generally offer small sums between $200 and $1,000 to cover running costs and repay within 14 or 31 days.
Bad Credit Does Not Matter
It is the main advantage of loans with guaranteed approval. Having poor credit will never be a stumbling block. People may have negative borrowing history due to different reasons. We tend to miss the payback date not just because we run out of cash.
For this reason, lenders use other tools to check how risky a customer can be as a borrower. As a rule, clients may feel 100% sure they are going to be approved in cases of the monthly wage, not less than $1,000. Some companies may ask to prove the income with some balance copies or official docs from the employer.
Another great advantage is that you are free to access needed cash despite the purpose. Lenders do not ask for reasons why you need that money. As a rule, borrowers opt for financial support in case:
- They need to cope with running costs.
- They urgently need to pay for medication, repairing works, rentals, etc.
- They need to arrange a wedding or have a vacation.
No one will ever ask why you actually need that money. Moreover, it is up to you ow to use them.