There's a good chance you're reading this because a banker has told you that your credit score makes it “impossible” for you to get a loan. “Impossible”, however, is one of those words that people say without always meaning it literally. You can almost certainly obtain loans for bad credit online, whatever your credit score.
Understanding Bad Credit Loans With Guaranteed Approval
You've probably seen a few ads for “bad credit loans, guaranteed approval”. As it turns out, “guaranteed” is another of those vague words that don't mean quite what the dictionary tells you.
What's really going on is that a lending company tells you that a very high proportion of customers – 95% or more – can qualify for bad credit personal loans. Guaranteed approval loans, as such, simply cannot exist. Otherwise, criminals in jail, fictional characters, and monkeys (presumably through a human lawyer who's slightly smarter than them) could all demand guaranteed approval loans without any intention or ability to repay them.
What Is Considered a Bad Credit Score?
Theoretically, someone's FICO score can range from 300 to 850, though very few individuals have hit the top or bottomed out completely. About two-thirds of people have scores falling between 580 and 800. Different companies and organizations have slightly divergent opinions on where the cutoff point between “bad” and “okay” credit lies, but 580 is the most usual figure.
Can I Get a Loan With Guaranteed Approval?
As we've mentioned, there's no such thing as total, 100% guaranteed loan approval. No credit check may be possible, but you do have to prove that you're in a position to pay back the loan and interest.
The most common way of doing this is simply to earn an income. Lenders that offer bad credit loans online will accept 3 months of paystubs (preferably from the same company), proof of Social Security or other benefits, or bank statements showing that you regularly have money coming in from whatever source. Another way of finding guaranteed loans for bad credit is to use your car as collateral, meaning that the lender can potentially take and sell it if you fail to repay the loan on time.
How Do Loans For Bad Credit Work Online?
Searching haphazardly for bad credit loans (guaranteed approval if possible) ends in disaster way too often. Some websites that advertise bad credit loans online with guaranteed loan approval are little more than scams.
Before you even start, though, you should get together all the documentation lenders may ask for: proof of employment or income, bank statements, proof of address, and so forth. Scrabbling around for these in various drawers isn't exactly exciting, but it will save time later. It's also useful to check your current credit score. This gives you an idea of which loans for bad credit online you qualify for; you should also look for and flag any errors on the report that are mistakenly dragging down your score.
It's then time to look for a lender that offers bad credit loans with easy approval. This is easier said than done: each advertises itself as the best, so figuring out their actual policies and the fees you'll have to pay is a nightmare. It takes a long time to get three or four offers to compare against one another and find the best deal.
Fortunately, there is an easier way: using CocoLoan as a broker. This means filling out one single online application form, after which CocoLoan will start searching on your behalf for bad credit personal loans. Guaranteed approval comes from the fact that, even if one of CocoLoan's lenders rejects your application, others will enjoy having your business.
How Does CocoLoan Compare
|Why Trust CocoLoan?|
|How much can you get?||$50 to $35,000||Zero upfront charges|
|What are the loan terms?||1 - 36 months||Easy repayment|
|Are credit checks needed?||Yes||Mostly soft pulls|
|Are bad credit accepted?||Yes||All credit considered|
|How to apply?||Totally online||Simple and straightforward|
How Can CocoLoan Help Me Get Easy Bad Credit Loans?
When you submit a request with CocoLoan (which is free, by the way), they'll determine which lenders are most likely to work with you based on your credit, income, and other factors covered in the short, simple application form. Then, you only have to wait as multiple quotes for guaranteed loans for bad credit start arriving.
These will all be from registered and licensed lending companies, not some website out there doing who-knows-what. This gives you security, and effortlessly applying to dozens at once increases your chances of finding affordable bad credit loans online. It typically takes less than 24 hours from first applying, to receiving guaranteed loan approval, to seeing the money in your bank account.
How much would you like to borrow?
What to Consider When Finding a Loan If I Have Bad Credit?
It's just a fact that you'll pay higher-than-normal interest rates on bad credit personal loans, guaranteed approval notwithstanding. This is partly because of how easily you can get them; it's something you simply have to accept.
There are still a few things you can do to pay less, though. Comparing multiple loan offers, like when using CocoLoan, is a good start. In this way, you'll also avoid applying to lenders whose requirements you don't meet. If some lending company insists that all customers have a minimum credit score higher than your own, for instance, CocoLoan simply won't ask them for a quotation.
Finally, once you're about to accept one of the offers you've received, it's important that you read the contract very carefully. Most easy approval loans for bad credit can be spent on whatever you want, but others may be restricted to home improvements, debt consolidation, or some other purpose. A few may have enticingly low interest rates, but charge steep penalty fees for late (or even early!) repayments. CocoLoan can't interfere once you've signed on the dotted line, so please do take the time to read the fine print.
Can I get a bad credit loan with no credit check?
The thing to understand is that, with guaranteed loan approval, no credit check that hurts your credit score is done. Your credit will be verified, but this is routine and nothing to worry about. A hard check is done once you accept a loan, just before you receive the money.
Are bad credit loans expensive?
Compared to loans for good credit, yes. This is, regrettably, unavoidable, though the consequences of not taking out a loan when you need to are often even more expensive. You can still pay less by using a service like CocoLoan to compare various loan offers and select the most affordable.
What do I need to apply for an online bad credit loan?
Lenders have different requirements, but it's a good idea to be able to prove everything stated in your application form. This includes your identity, address, income, and so on.
What are good ways to build my credit score?
The basic idea isn't too complicated: just be responsible with your finances (especially debt) and honor your obligations. Use credit cards carefully, pay bills and loan installments on time, increase your income if you can and, if taking out loans for bad credit online, find a lender that reports repayments.