Originally posted on https://bonsaifinance.com/what-are-bad-credit-loans-guaranteed-approval/
Perhaps, you’ve done some online searches for fast cash loans that accept less than perfect credit scores, and you’ve come across the term bad credit loans guaranteed approval. But what exactly does that phrase means and how will these types of loan benefit you?
What Exactly Are Bad Credit Loans GUARANTEED APPROVAL?
When you apply for bad credit loans guaranteed approval, what that means is that given you meet only some very minimal criteria, you are guaranteed to be approved for the loan. It does not, however, exclude the possibility of not being approved if, for example, you are under the age of 18, have no active US bank account, or have other outstanding fast cash loans you’ve not repaid yet or if you failed to ever repay a past loan from that same lender.
Also, you do have to have some kind of verifiable income that will allow you to repay the loan in affordable monthly payments – or in a single lump sum payment in the case of payday loans.
However, these sorts of requirements are considered so minimal and so basic, that to say that you can’t be turned down if you meet them is, in the lending industry, just like saying approval is “guaranteed.”
You can’t be turned down because of your past credit history. That’s the main point. Nor will you be denied the needed funds because you lack collateral or you don’t want to put it up, in the case of personal installment loans (because they are no-collateral loans.)
What Types Of Guaranteed Loans Will Best Meet My Needs?
There are two main types of loans that often don’t require you to have a good credit score and will give you the cash you need fast: personal loans and payday loans.
Payday loans are extremely short term loans in very small amounts. They range from $100 to $1,000 in loan principal and give you 2 to 4 weeks to repay the loan in full. Payday lenders charge a high APR and fees on a rate basis, but because the borrowed cash and loan term are so low, the total dollar amount of interest and fees is often not that high.
Personal loans are best when you need a little more cash and a little more time to repay. The interest is usually less than with payday loans, but the terms and amounts are higher so that the dollar amount paid is correspondingly higher. Still, it’s often lower than with many credit cards, and you can find reasonable rates if you use a good search engine like that provide by Bonsai Finance.
Whether to choose payday or personal loan depends entirely on your situation and the purpose of the loan. You also need to find a lender and specific loan offer that fits your budget and meets your needs. Bonsai Finance’s dedicated, customer friendly staff can guide you in making this kind of determination.
Limitations Of Guaranteed Approval
Be aware that although your credit score will not affect approval for most online personal and payday loans, your income level and overall monthly expenses put limitations on how much you can be approved for automatically and on what kind of a monthly installment plan a lender would likely approve.
While almost everyone can get approved, your monthly payments for personal loans normally can’t be more than 15% to 20% of your income unless you have very low expenses. Your lender is as much concerned that your payments be realistically affordable to you as you are!
If you’re looking for bad credit loans guaranteed approval, Bonsai Finance can make your search short, simple, and successful! We can find the offer that gives you the maximum amount of flexibility and benefits!