Bad Credit Loans Guaranteed Approval
If you have bad credit (a credit score below 620), you may have trouble accessing regular loans from banks or other financial institutions. However, having bad credit doesn’t mean that you can’t get a loan. With more than half of Americans having a below average credit score, many people are in a situation similar to yours.
Luckily, there are bad credit loans guaranteed approval that you can apply for. These personal loans give you access to much-needed funds for car repairs, emergency medical treatment, credit card debt, and any other expenses you may need to handle on short notice. With a guaranteed approval loan for bad credit, you can enjoy the security of receiving support when you really need it.
But what are bad credit loans? How do they work? And what will you need when applying?
Understanding Bad credit loans guaranteed approval
A bad credit loan is a type of personal loan offered to individuals with bad credit. These loans are specifically modified to meet the financial circumstances of borrowers with a low credit score (or no credit history).
There are many institutions that offer bad credit loans, including banks, online lenders, and credit unions. Even with a low (or no) credit score guaranteed approval loans bad credit ensure that you qualify for the funds you need (as long as you meet certain minimal standards).
A bad credit loan works in much the same way as a personal loan. You borrow a certain amount and pay it back in monthly installments. Each lender will have their own interest rates, duration of repayment, and application criteria. That is why it’s important to find the right lender who suits your needs.
By working with a company that connects you to the right lender, you can save on interest rates, receive the amount you require, and have more time to repay. Bonsai Finance helps you access numerous loan options. We maintain a wide network of lenders who offer competitively priced bad credit loans.
Who may need a bad credit loan?
You may be wondering if applying for a bad credit loan is the right option for you. Bad credit loans are useful for more than just emergency expenses. You can also use the funds from such loans in a similar manner as you would use a normal personal loan. Depending on how much you qualify for and the length of your repayment period, the funds you receive from bad credit loans can be used for many different expenses.
If any of the following situations apply to you, then you may be a good candidate for a bad credit loan.
Low or no credit history
Most people who need bad credit loans have a low (or no) credit history. With bad credit, you can’t access many other traditional loan channels (such as bank loans or mortgages). In most cases, if you have a credit score of 620 and below, your credit rating is considered poor.
There are many reasons why people end up with bad credit. You may have lost your primary job and fallen behind on your bills, or you may have experienced a medical condition that threw you off financially. Undergoing divorce or the loss of a spouse may also affect your credit score due to the significant changes in your financial capability.
Thanks to guaranteed approval loans bad credit, you can still access the funds you truly need even with a low credit score.
Denial from traditional loans
If you recently applied for a traditional bank loan and your application was denied, you may be able to qualify for a bad credit loan. Traditional loans typically have more stringent requirements for qualification. For example, they may require a higher income in addition to a good credit score. They may also request for cash reserves and other similar financial requirements.
Bad credit loans are often more flexible to obtain. Therefore, if you’ve been denied a traditional loan, you can obtain the funds that you need by applying for guaranteed approval bad credit loans. In fact, with a standard denial letter from the bank, you can increase your chances of success with a bad credit loan.
Credit scores for bad credit loans
Your credit score is often the first thing that financial institutions look at when determining if you qualify for a traditional loan. Banks and other lenders typically use your credit score to determine your ability/likelihood to repay a loan.
Credit scores range between 300 (lowest) to 850 (highest). If you have a low/bad credit score, traditional lenders may view you as more of a lending risk. This may, in turn, cause them to deny your request for a personal loan. However, bad credit loans are specifically designed for low credit scores.
In most cases, the credit score range is as follows:
- 300-549: Bad credit
- 550-629: Low/subprime credit
- 630-679: fair/Average credit
- 680-719: good credit
- 720-850: Excellent credit
You can check your credit score via sites such as CreditKarma or MyFreeCreditScore.com. These resources are useful in checking where you stand before applying for a bad credit loan.
Most bad credit loans are available for people who have a score of 630 and below. Lenders of bad credit loans understand how challenging it can be to maintain a perfect credit score. It only takes a sudden illness or change in income for you to fall behind on certain bills. Therefore, guaranteed loan approval for bad credit enables many people to access a personal loan when they need it.
How to access a bad credit loan
There are several financial institutions that offer bad credit loans. For example, credit unions, some banks, and online lenders offer bad credit loans with guaranteed approval. The application process for such loans may be simpler than traditional loans. This is because traditional personal loans require an extensive credit check, income verification, and cash reserve requirements (if applicable).
Personal loans for bad credit typically have the following general requirements:
- Age of between 18-65 years
- A regular and verifiable source of income (often verified via bank deposits)
- An active cell phone that receives calls and texts
- An active bank account to facilitate monthly repayments
- A debit/credit card as a fallback solution for repayment of the loan
Bad credit loans can either be secured or unsecured. Unsecured loans involve the signing of a contract with a promise to repay. The lender will typically issue you with a contract that contains the terms and conditions of the loan (including the loan amount, repayment period, interest rate, etc.).
Once you sign the contract, you pledge to abide by its stipulations. Any default of the loan will typically result in a collection agency attempting to recover the debt.
A bad credit loan may also be secured. This means that you provide an item of value that the lender can use as collateral for the loan. Most secured loans are secured using a car, jewelry, a home, or other items of adequate value.
How Bonsai Finance connects you with the right lender
At Bonsai Finance, we connect you with lenders who offer competitively priced bad credit loans. We also maintain a network of lenders who have fairly simple application procedures. In most cases, as long as you have a stable income, you’re of the required age, and you have an active bank account/credit card, you can qualify for a bad credit loan.
Our lenders typically provide you with a safe and reliable loan by ensuring the following processes:
Personal installment loans
Our lenders offer personal installment loans that give you more time to repay (and with lower interest rates). You will often have a few months to slowly pay back the loan without interfering significantly with your regular budget. And with competitive interest rates, you won’t be stuck with unreasonably high payment amounts.
Gauging your ability to repay
Our lenders also put checks and balances in place to ensure that you can afford your bad credit loan. We work with our network to verify your income, determine a reasonable interest rate, and a timely repayment plan. In this way, you won’t be stuck with a high interest loan that causes you to default on payment or to re-borrow unreasonably.
Flexible repayment plans
Bonsai Finance (in collaboration with our network of lenders) works with you to establish flexible repayment plans. Our lenders don’t pressure you to repay everything within 30 days. Rather, they provide you with several options that fit your budget and your current financial situation.
Reporting timely payments to credit bureaus
You can also build up your credit history by applying for a bad credit loan. Because some of our lenders report your timely repayment to credit bureaus, you can gradually improve your credit score over time. Therefore, you can kill two birds with one stone; meeting your financial needs while rebuilding your low credit score. A win-win situation.
Benefits of bad credit loans
There are many benefits of obtaining a guaranteed loan approval for bad credit. In addition to meeting emergency expenses, you can also benefit in the following ways:
Quick approval process
Most bad credit loans are available via a quick and easy online process. Thanks to services such as Bonsai Finance, you can gain access to multiple online lenders via one quick application process.
You can also obtain your cash quickly and hassle free. In fact, most approvals are made instantly and the cash deposited in your account within 24 hours.
Multiple lenders to choose from
Despite your bad credit score, you will still have the opportunity to choose between multiple lenders, amounts, and interest rates. Finding lenders via Bonsai Finance gives you several options to choose from. In this way, you can obtain the best bad credit loan that meets your financial needs.
Use the funds how you would like
Guaranteed loan approval for bad credit can be used in many different ways. You can borrow cash for any of the following needs:
- Purchasing a new car or carrying out car repairs
- Catering for travel expenses
- Paying off a high medical expense/deductible
- Carrying out home repairs/renovations
- Reducing/paying off credit card debt
Simply put, bad credit loans reduce the financial uncertainty you would otherwise have to deal with. They help you meet short-term expenses while building your credit for future purposes.
What you should know before borrowing
While there are many lenders out there who claim to offer bad credit loans, not all are ideal for your needs. There are many cases where some lenders take advantage of your short-term financial needs to offer highly priced loans (with very short repayment periods). And because it can take lots of searching around to find a quality lender, many borrowers often fall prey to highly priced bad credit loans.
That is why it’s important to work with a company capable of connecting you to a network of genuine lenders. When you need to quickly connect to a lender for your financial needs, Bonsai Finance is your best bet. We already have an extensive network of lenders who offer low interest rates, longer repayment periods, and more flexibility during repayment. Because we have already screened our network for quality, you don’t have to worry about getting a bad deal with your loan.
Bad credit loans through Bonsai Finance
If you’re looking for bad credit loans guaranteed approval, the lender you work with will determine many different factors. At Bonsai Finance, we understand the challenges that surround finding a bad credit loan. Our commitment is to connect all our customers with the best lenders available.
Rather than pressuring you to make a decision, we provide you with multiple options to make your application process easier. And because we have years of experience in the field, we have developed relationships with lenders who can provide you with competitively priced bad credit loans.