Most people I talk to are really skeptical when they see the claim for a guaranteed bad credit loan. How is this even possible? Is this just a scam? These are common questions. But there is no need to worry. There is such a thing as guaranteed personal loans available online and they will be delivered into your bank account quickly without a credit check.
However, these loans are not free money and before you go out to get a guaranteed loan today, you should go over the advantages and the disadvantages of doing so. There is more to getting a guaranteed personal loan with bad credit than filling out a simple form.
Scam Artists Do Exist
Though guaranteed, no credit check loans are available and legitimate, not everyone who offers them is. Therefore, when searching for these loans you need to have your guard up and make sure that you look into a few factors before offering any personal information or making any deals.
One way to check out the lender you are considering is to see if their online business is backed by a physical presence and go into their office instead of using the computer. As an alternative, you can call that office and verify its location if it is too far away. Good online lenders will also have affiliations with professional organizations and will provide you with a verifiable business history.
Another option is to use other tools offered online as a means to check in on any lender you consider. State Attorneys General will have websites that list fraudulent companies and those with questionable complaints. Also, there are several online forums and the Better Business Bureau which can provide insight into the lenders you are considering.
Disadvantages of Guaranteed Loans
Even if the lender you find is legitimate, there are still some distinct downsides to choosing to use a guaranteed loan to get the cash you need. These include:
- Total amounts offered - guaranteed loans, or payday loans, are generally only offered in sums up to $1,500 for bad credit borrowers.
- Repayment terms - as the alternate name for these loans (payday loans) implies, the purpose of guaranteed loans is to act as a payday and you are expected to reimburse the lender once you actually do get paid.
- More loans can negatively impact your credit - one of the factors in determining a person's credit score is their income to debt ratio. The more loans you take out, the smaller that ratio and the lower your credit score.
Advantages of Guaranteed Loans
The flip side to the above issues is the many advantages that payday loans can provide. They include:
- No credit check is required - if you need money you can get it without worrying about discrimination because of your credit score.
- No collateral required - these are unsecured loans, you do not need to risk your home to get one.
- No faxing documents - the paperwork on these loans is minimal.
- Fast turn around - the money will be in your account within 24 hours.
- No questions asked - lenders do not need to know why you need to money.
Getting the Right Bad Credit Loan for You
Using a guaranteed personal loan when you have bad credit can offer financial relief at a time when you need it with minimal hassle. However, there are clear advantages as well as disadvantages to taking such a loan which you need to consider before making any decisions.