As we all know the most important stage of taking out a loan is being qualified by our lender. That might be difficult when your credit history is not even satisfactory. To be able to borrow money even if your credit history is bad, you may want to choose bad credit loans. One of the best of those is guaranteed approval loans which can be really helpful if you need a cash infusion. There are a few things that should be remembered when it comes to guaranteed approvals for bad credit loans.
Guaranteed approval = high APR
The annual percentage rate is something you should check without any doubt. The lower it is, the better for you. The best thing you can do to choose a loan with the lowest APR. To do that you may need to compare at least a few personal loan firm that offers guaranteed approval. Of course, the APR won’t be as low as in regular loans in which your credit is checked. The reason for the high annual percentage rate is that your lender needs to secure themselves in case you won’t pay off your loan. This is understandable – lending money for someone whose credit history is unknown might be risky.
A guaranteed approval loan can be a scam.
If you want to be safe and avoid trouble, choose a trusted lender that is reputable. You can look for such companies on the Internet – there are lists of “no scam” loans that are 100% safe and trusted. What else can you do? Always read everything you fill and be careful when you give out your personal information. That will keep your data and money safe. Remember that a personal loan firm should have its web page, you have to be able to write or call them if you have doubts. If there is no way to contact the lender, you should probably look for another. You should carefully study the offered terms.
Don’t take out a loan to pay off another
It is not a good idea to borrow money to repay the previous indebtedness. To avoid this kind of situation you need to think and make sure if you are able to repay your first loan. Try to plan it in advance because after filling all the formalities it might be too late to resign or turn back. What matters is your income, stable employment, and the amount of money you are ready to pay as installments. Don’t borrow more than you need – it won’t help you either. Calculate the amount of money you really need in order to avoid or end the emergency situation. This is very important so don’t make any mistakes!
There are no absolutely guaranteed loans
You should be aware of the fact that there are some circumstances in which you won’t be qualified for a loan. It happens when you don’t have stable employment or you have very low income. It would be extremely risky to lend money for someone who is unable to pay off the loan. If you cannot qualify for a guaranteed approval loan which may be the last chance to get money, you should improve your credit history by paying your bills at the right time and saving money. You should start to calculate your every expense and sooner or later you’ll realize that your credit is getting better. That takes a lot of time and effort but that is an alternative for guaranteed personal loans.