Almost everyone needs to get a loan at some point in life. Personal loans can be used for a variety of purposes. You may be in need of a loan to purchase your own home, get a new car, fund your own business, renovate your existing house or to meet large, personal expenses. Whatever your reason is for applying a loan, the first thing you should be concerned about is the status of your credit. Why so?
Personal Loans and Your Personal Credit History
Lenders will primarily make a background check on a loan applicant’s credit report before granting approval. Most lenders prefer clients with outstanding credit rating and decline those who fail to meet their requirements. If you presently have a low credit score, it is very likely you will get a refusal when you apply for a standard loan.
Does this mean there’s really no chance of you getting a loan? The good news is, lending companies have made provisions for loan applicants with less-than-perfect credit scores or with bad credit history. Today, you can find personal loans guaranteed with approvals. What exactly are guaranteed loans?
Personal Loans with Guaranteed Approvals – A Possible Option
Guaranteed personal loans are just what their names imply. These are loans that guarantee quick approval. When you apply for a guaranteed loan approval, you can expect to be granted a loan regardless of your credit standing. Yes, whether or not you have a passing credit score, a guaranteed approval loan ensures that you will get the funds you need.
Therefore, loans with instant approvals give a great opportunity for people with bad credit who are in need of financial aid in a hurry. If you can’t afford to wait until your credit improves before getting a loan, then an instant approval loan may just be the one you need. Nevertheless, it is recommended to consider working on your credit report first before obtaining a new loan.
Ask yourself, do you really need to use the money you’ll borrow right away? Can you delay your plans on purchasing a new home or a new car for a few months, until you have improved your credit score? If it is possible to work on rebuilding your credit before taking out a loan, then don’t hesitate about it.
This is because standard loans have lower interest rates than personal loans with guaranteed approvals. Since most people who apply for guaranteed approval loans have bad credit, lenders also ensure that they will be protected from the possibility of defaults from high-risk borrowers. Thus, lenders require higher interest rates with guaranteed approval loans.
Is it possible to find a guaranteed approval loan lender who offers a reasonable interest rate? The answer is yes. IF you do your research carefully in the loan market, you can find a reliable lender that will not take advantage of your bad credit but would still provide you with the loan you need. So take your time in examining different guaranteed approval loans in the market before choosing one that you feel is the best for you.