Bad Credit Loans With Guaranteed Approval

If you are in a hurry for a no-credit-check loan you’ve come to the right place. At GreenDayOnline we process thousands of loan requests per day and the majority receive loan approval from one of the lenders in our network. We specialize in finding loans for bad credit borrowers, and there are plenty of our lenders who will not perform a hard credit check.

Our lenders offer Payday Loans and Title Loans for short-term funding and Installment Loans for long-term funding.

But is there such a thing as a loan with guaranteed approval? If you meet the lender’s criteria the answer is “almost”. However, nobody can guarantee you a loan. Let’s explain what matters and what doesn’t.

Key Takeaways

• Bad credit FICO scores range from 300 to 579.
• Loans with no hard credit checks do exist. A soft credit check may still be made.
• Guaranteed Approval of neither payday loans nor installment loans exists, but payday loans have a very high approval rate. Loans may be rejected for several reasons unconnected to a low credit score, disqualifying you.
• Bad credit “instant” loan products include payday, title, installment, signature, and bank personal loans. Loan agencies can connect you to online lenders. Greendayonline is a loan agency. Visit our reviews and testimonials on TrustPilot
• Forty-four states have governmental laws restricting either loan size, interest rates, or both. Interest rates on payday loans range from 300% to 800%. Interest rates on installment loans typically range from 6% to 35%.
• Poor credit borrowers with urgent bills are often desperate for a fast cash advance. Shop around for the best deal and to avoid hidden fees. Ideally, speak to a financial advisor.
• There are advantages and disadvantages to bad credit loans. The main drawback is that the total cost, including the APR, is higher than traditional loans. Benefits Include that loans are offered quickly, and the approval rate is high.

Can I Get A Bad Credit Loan With Guaranteed Approval?

Guaranteed Approval implies that a lender would issue a loan to any applicant regardless of who they are and their circumstances. Approval can only be guaranteed to only the borrowers with the best credit scores. There are always conditions that apply in the case of bad credit loans. A loan can be denied to you for the following reasons:

• You do not meet the lender’s criteria. A loan will be rejected if you:
  • Are under 18 years of age.
  • Do not have a work permit.
  • Are not a citizen of the United States.
  • Have no email address.
  • Have no physical address.
• A checking account may require a post-dated payment approval such as a check or ACH (Automated Clearing House) withdrawal form.
  
• You must have a verifiable income sufficient to repay the loan requested. You can be on unemployment benefits and do not need employment confirmation.
• You have been in personal bankruptcy (chapters 7 and 13 of the US bankruptcy code).
• The lender decides to run a credit check on your personal details.
• The lender discovers payments to gambling companies.

What Is A Bad Credit Loan?

A Bad Credit Loan is a loan specifically designed for people with poor credit. It comes with a high-interest rate and is often a short-maturity loan. A bad credit borrower is a person with a bad credit score. Credit scores were invented by FICO¹ to measure creditworthiness. FICO’s trademarked score is called VantageScore, and it ranges from 300 (extremely poor) to 850 (an excellent credit rating).

The three credit bureaus, Equifax®, Experian®, and TransUnion® use various credit scores in their credit reports which assess an individual’s creditworthiness. Still, lenders are most interested in the FICO score.

Borrowers with poor or no credit history are high-risk and often seek out a loan for bad credit with guaranteed Approval. A FICO score between 300 and 579 is a poor credit score.

Advantages Of “Guaranteed” Bad Credit Loans

There are many advantages to bad credit loans when you have an emergency and need money fast. Here are the 7 main advantages:

1. Lenders can approve the loans fast
2. No security or collateral is required
3. Flexible payment terms
4. A five-minute application form
5. If paid back on time they can improve your credit score
6. Can be used for any purpose
7. Fixed interest rates

Disadvantages Of “Guaranteed” Bad Credit Loans

There could be potentially many disadvantages to bad credit loans. Here are the main 7 disadvantages

1. Your credit score means you are a high-risk client for banks
2. Interest will be far higher than traditional loans
3. You may be rejected if you have terrible credit
4. Some lenders may take advantage of you
5. They can potentially trap you in permanent debt
6. Lenders may have access to your bank account
7. If you miss payments or rollover the loans the fees can be high

What Is A No Credit Check Loan?

A no-credit-check loan is a loan made without a hard credit check. Surprisingly, no credit check loans do exist.

A hard credit check is made when you apply for a form of credit, such as a credit card or a mortgage, or in this article’s case a bad credit loan. Hard credit checks can appear on your credit report and detrimentally impact your credit score.

Lenders may still make a discretionary “soft” credit check if you apply for a bad credit loan. A soft credit check is based on your address, name, and some other less intrusive factors. A soft credit check has no impact on your credit score as it is not tied to a new application for credit.

Can I get A Same Day Loan Approval?

Yes, you can get same-day approval for online loans. The loan can be deposited by the end of the business day if you apply in the morning. The cut-off time is usually noon, after which the loan will be deposited on the next business day. The lenders need to approve the loan and then distribute it via a bank. The deposit time can also depend on the bank the lender uses. Some banks are quicker than others.

Most lenders want to get the money out to borrowers quickly, which means the customer can use the cash and on the lender’s side, they start making interest on the loan.

Do Bad Credit Loans Come From Direct Lenders?

Bad credit loans can come from lenders or third parties. Greendayonline’s direct lenders have been vetted for transparency and by using our application you will be connected to several lenders who will look at your application digitally.

The best part about our application process is that you have several chances to be approved by our network of direct lenders. 

Which Types Of Lenders For Bad Credit Loans?

There are a few types of bad credit loans. The loan amounts vary and the loan options are different depending on the customer’s situation in the credit cycle. Below we give explanations for 6 types of loans.

1. Banks And Credit Unions:

   Banks and credit unions also make bad credit loans. Credit unions are non-profit cooperatives lending at low-interest rates to their members.
   Banks that offer personal loans (and business loans) may consider making short-term loans. Still, banks have a lower risk tolerance than specialized lenders. Banks offer low-interest rates but prefer to avoid making short-term loans. The payoff on a short-term small-dollar loan with a low-interest rate is very small.
   

2. Payday Lenders:

   A payday lender is a specialized lender offering flexible loans without good credit. Payday lenders provide a quick decision on borrowing money. Payday lenders and online lenders are more likely to approve high-risk loans. The decision can often be made without a credit check. A payday lender can sometimes issue funds with a same-day direct deposit after receiving an application. Payday loan limits range from a minimum amount of $100 to $1500 and are illegal in 14 states. In 9 states, lending is regulated, some form of short-term borrowing is permitted, and in 27 states, payday loans are legal. Payday loans always have very high APRs². The maximum in California is $255.
   

3. Title Lenders:

   Title lenders offer short-term high APR loans called title loans. Auto title loans are secured loans with a vehicle as collateral. If you default on the loan, the lender will take your car in an attempt to collect the debt. The vehicle owner may continue driving his car while the loan is active. The size of the loan depends on the value of the vehicle and your ability to repay.
   

4. Online Lenders:

   Online lenders make installment loans, payday loans, title loans, or signature loans directly through websites or apps.
   

5. Online Brokers:

   Online loan brokers offer simplicity by matching you with lenders to increase your chance of loan approval. Online brokers are not lenders. The interest rate on broker loans can vary by the lenders in their network.
   

6. Installment Lenders:

   Installment lenders offer installment loans for bad credit, often unsecured, loans in the thousands and up to $10,000 with a bank and up to $5,000 with online installment lenders. All Installment loans carry a longer repayment period than payday or title loans, typically 12 months commitment or longer timelines. These loans have a repayment schedule with fixed monthly payments.

Examples of Interest Rates on Installment Loans

The interest rate on a loan. Interest in dollars is the surcharge made by the lender to use his cash. It can be expressed as a percentage (interest divided by the loan principal). Normally interest rates are calculated on an annual basis.

The annual interest rate is the annual percentage rate (APR). The APR on payday and title loans is very high (from 300% to 800%). The compounding effect of the interest makes the loans prohibitively expensive when loans are extended.

Installment rates APR can be 6% to 35%. Forty-three states cap the interest rate on a $500 -dollar, a 6-month loan with a median APR of 36.2%.

Here is an example of a loan at 6%

• Loan Amount: $1,000
• Interest rate: 6%
• Loan term in months: 6
• Total principal: $1,000
• Total interest paid: $17.57
• Monthly payments: $ 169.60

Here is an example of a loan at 36.2%

What Are The Interest Rates On Payday Loans

Payday loan maximums ³ are up to $1500 in 37 states, and payday loans are limited to $255 in California. 42 states control rates on $2,000 two-year loans, and 38 states limit the interest payable on a $10,000 loan over five years.

Fees and commissions are not typically added to high-interest loans. The high APR is normally the only cost of the loan. 

Rollover fees may be charged in the case of late payment. Payday loans for bad credit do not revolve as they have a fixed repayment date. Loans may carry an early prepayment penalty.

Footnotes

1 – FICO, the Fair Isaac Corp, founded in 1956 by Bill Fair and Earl Isaac, invented the credit score to measure the creditworthiness of individuals.

2 – APR, or annual percentage rate, is the effective rate of interest if the loan were to be held for a full year. The *actual interest rate on the loan is calculated by the interest paid divided by the loan principal.

3 – source: nclc.org 2019

• Author
• Recent Posts

Jason Rathman

Financial Expert at GreenDayOnline

Jason writes about all financial topics such as loans, debt solutions, and bankruptcy. He is an expert when it comes to subjects like APR, loan fine print, debt collection laws within the United States. With his in-depth knowledge of all things financial, he is a great asset to Greendayonline.

Latest posts by Jason Rathman (see all)

• Affecting Your Credit Score After Applying for Unemployment - Nov 30, 2022
• What Loan Options Are There With Bad Credit? - Nov 28, 2022
• What APR Means and How It Works? - Nov 25, 2022