Still Looking for Guaranteed Loans with Bad Credit?
Truth About Guaranteed Loans
Unfortunately, there is no such thing as "guaranteed payday loans" no matter how bad or good your credit score is. The idea behind unsecured loans, such as payday loans, is to evaluate borrower's creditworthiness and decide whether one can afford to pay out the loan or not.
In case the lender sees that the borrower has no credit history or a bad credit score, it is almost impossible to get an unsecured loan. The fact that some companies claim to offer "guaranteed loans" is a bad marketing practice and a warning sign of dishonest lenders.
But is it possible to get a payday loan with bad credit?
Getting an online payday loan if you are one of the millions of borrowers with a bad credit score is not easy for sure, but it is still possible.
The good news is that you have several options for how you can guarantee yourself better chances of getting approved for a payday loan, let us explain each option in detail.
Guarantee yourself better odds of getting a loan despite bad credit
When applying for a payday loan with poor credit, your goal is to prove to the lender that you can afford the loan and that you are a responsible borrower who is facing unfortunate, but temporary life circumstances.
Be proactive, prove your ability-to-repay
One of the ways how you can look better in the eyes of the lender is to be proactive in your application and provide additional income sources to assure that you can repay the loan on time. You can also use unemployment benefits as your alternative income option. Any money on your savings accounts can also be considered by some lenders.
Here is a list of additional income sources that some lenders may consider:
- Disability benefits.
- Retirement benefits and pension.
- Spousal income.
- Alimony.
- Social security benefits.
- Interest on dividends.
Keep an eye on your credit score
Your credit score will also play a huge role when applying for a payday loan online. Lenders will check your credit score and credit history to determine whether you are a reliable borrower and a higher credit score gives you better chances of getting approved for a payday loan.
Most lenders look beyond your credit score number, they check how well you manage your debts, how quickly and consistently you have repaid your previous loans.
Improve your credit score
Building your credit takes time and effort. There are no ways to improve your credit score quickly unless there is an error in your credit history - so checking your current credit report for errors is the first thing you should do.
When you approach credit products, such as payday loans or credit cards, then make sure that you always stick to your repayment schedule, this also helps to improve your credit score over time.
Who can get a bad credit payday loan?
Here are the requirements which one has to meet to get a payday loan with fair or bad credit:
- You must have a valid photo ID, such as a passport or a driving license;
- Some lenders might request a bank account statement for the last six months;
- You must be at least 18 y.o. or older depending on your state laws;
- You must be able to provide income verification.
What are the risks of bad credit payday loans?
Online payday loans for bad credit can have devastating effects. Below are some of the risks of borrowing with a poor credit score:
- Extremely high interest rates - you might end up repaying in interest rates more than your base amount.
- Missed payments - missed payments can damage your credit score or result in additional fees or penalties.
- Losing collateral - if you use a secured loan, then you may lose your valuables if you fail to repay the loan on time.
- Short repayment terms - payday loans must be used for short periods, these are too expensive to use over longer periods.
Choose an option with good terms to get you through your situation while safeguarding your future.