For individuals who suffer from bad credit, guaranteed approval loans provide short-term assistance to meet their financial needs. The only factor that can disqualify one from getting a guaranteed loan approval is an on-going or recent bankruptcy.Nevertheless, if the problem is with regards to your low credit score, you can apply for this type of loan as a way to redeem your damaged credit.
How to Apply
What are the procedures involved in applying for a guaranteed loan? There are various ways to apply. Application can be done over the phone, from the lending company’s website or by personally visiting the lender’s office. Most applicants prefer to apply online because it is fastest and most convenient. All one has to do is fill-up an online form, submit and wait for a response for as little as 24 hours.
Can anyone qualify?
Is it really easy to get an approval? Technically, the procedures involved in applying for a guaranteed loan are easier than a regular loan. As with other loans, a borrower must be of legal age or at least 18 years old. He or she must also have earnings of at least $1200 or above for the past three months. An active checking account is also required although a high credit score isn’t necessary. Once approved, the borrower can receive his loan in cash the following day via electronic transfer.
Consequences of the Loan
Yes, the application process is fairly easy but this doesn’t mean borrowers should take their payment obligations lightly. When searching for a guaranteed loan, an applicant will be required to sign a contract. The rules and conditions of repayment vary between lenders so a borrower must see to it that he clearly understands the terms of his lender. Generally, lenders will automatically debit the repayment amount from the borrower’s checking account if he/she fails to submit payment on time. Other repayment options may apply depending on the lender.
As with any type of loan, consumers are warned not to make decisions in a hurry when looking for a guaranteed loan lender. Since getting approved can be done in a few, easy steps, the borrower must also take his time researching for the best lender to apply to. There are lenders who provide guaranteed loans that take advantage of their client’s financial needs. Some lenders may impose excessively high interest rates which can only cause a person more serious debt problems.
Finally, always remember that guaranteed loans are not meant as a long term financial solution. These loans are easy to obtain but they do have higher interest rates than regular loans. It is best to seek out other possible alternatives before getting this type of loan. If however, you feel that this is the best option for your short term needs, see to it that you’ll be able to make your payments on time to avoid incurring high interest rates on your debts.
Liz Roberts is a freelance writer and loan consultant. The website http://www.badcreditresources.com offers resources that specialize in providing bad credit loans and bad credit cards