Request a loan with guarantor
Even though guaranteed approval isn’t really possible when you have bad credit or weak financial strength, applying for a “ guaranteed loan ” can significantly increase your chances of getting fast funding, rather than having to wait. that your finances have improved. The process involves finding someone with good credit and financial strength to co-sign your loan application, agreeing to take responsibility for your loan repayments in case you can no longer afford it.
Make sure he is aware of this fact, because if you end up defaulting, he will have to assume your debt, which can do serious damage to both of your financial profiles. That being said, secured loans can be beneficial when looking for near instant loan approval, as your own credit and finances will not be an issue. Instead, the financial competence of your guarantor becomes the deciding factor.
What to do when you need access to cash fast?
The time it takes to get approved and receive your personal loan depends on your own financial strength, as well as your lender’s borrowing procedures. For example, banks, credit unions, and other major lenders have policies that prevent them from lending to those who don’t have good finances. Also, it often takes them more than a week to communicate if you have been approved, depending on the type of loan you have applied for.
You see, with finances in bad shape, even a simple credit card through a typical banking institution can take weeks to be approved and sent through the mail. So, if you are applying for a loan from a prime lender, the best thing to do is to be patient and take the time to address any imperfections in your financial profile.
Choose the right type of lender
Again, what if you don’t have that kind of time? What if you need to cover an urgent expense, such as your rent, tuition, or utility bills? If so, it may be best to apply through a private or alternative lender. While having a co-signer or the like speeds things up and increases your chances of approval, choosing the right lender is definitely an essential part of getting quick access to personal loans.
Try Bad Credit Lenders
Many alternative lenders do what financial institutions can’t, provide loans to borrowers with bad credit There are many benefits to applying for a loan from a bad credit lender.
Versatile Requirements: Unlike financial institutions that place a heavy emphasis on credit scores, bad credit lenders consider a number of different factors to determine an applicant’s eligibility. Income, job stability, debt to income ratio are other factors on which they warrant your approval.
Easy loan application: Traditional financial institutions require a lot of unnecessary documents that turn a loan application process into a nightmare. However, bad credit lenders are geared towards getting you money when you need it. The forms are often very simple and can take 5-20 minutes to complete.
High Approval Rates: The entire business of bad credit lenders is based on granting loans to borrowers whose credit is less than perfect. As such, their approval rates are much higher than traditional financial institutions.
Building credit: When you have bad credit, it can be difficult to rebuild your credit because banks are unwilling to provide you with credit products. Bad credit lenders give you the opportunity to rebuild by giving you access to different credit products.
Frequently Asked Questions About Secured Loan Approval
Will bad credit affect my loan approval?
Certainly. It mainly depends on your lender. For example, financial institutions and other prime lenders have more rigid lending regulations, so your bad credit may prevent you from being approved there. However, if you apply to a private, alternative or specific bad credit lender, your chances will be higher.
Can I get guaranteed approval without a credit check?
As we said, guaranteed approval does not exist. However, there are legitimate lenders who offer personal loans without checking your credit as part of their application process. You can also apply for a loan with guarantor, in which the credit of your co-signer/guarantor will be checked for you.
I need a loan right away. Can I get instant approval?
Remember that there is a big difference between the promise of a personal loan guarantee and an instant loan approval. Anyone who promises 100% approval no matter what is probably a scammer.Thereafter, you won’t have to wait more than 1-2 business days to receive your funds.
When requesting a loan with a guarantor, mortgage closing becomes a smoother process. Having a guarantor can boost your credibility, making lenders more amenable to providing favorable terms. This added security expedites the mortgage closing, enabling a timely acquisition of your dream property while minimizing potential hurdles along the way.