The Best Bad Credit Personal Loan Guaranteed Approval

You might have an excellent credit score but being accepted for a loan that does not meet your needs in some way is worse. Besides, it is impossible to guarantee loans for those with bad credit scores. Therefore, you would rarely find lenders for bad credit personal loan guaranteed approval.  But, some things can be done to increase the chances of being accepted to get a loan and with an increasing amount. You will have to find the loan providers who do not count you based on your credit score. In this article, we will explore some of the loan providers who approve loans for the amount of $5000 and up, and we will share some tips to increase the chance of getting the loan.

The Best Ways To Get Bad Credit Personal Loan Guaranteed Approval ($5000 and Up)

There are some of the best ways to get a personal loan, even with a bad credit score. You will just have to find the provider that provides one. You may find online lending networks to be the easiest way to connect to the country’s potential lenders. In this section, we will explore some of the top-rated lending partners with some requirements who approve bad credit personal loans. This is a good fit for your financing needs:

Avant:

People with bad credit scores can get loans from Avant. To qualify for this minimum credit score requirement is 580. But you will have to pay APRs that range from 9.95%-35.99%, with an administration fee of 4.75% of the loan amount.  The administration fee depends on the loan amount, credit, and loan period factors. The repayment period ranges from 24 – 60 months.

Monevo:

Monevo offers loans to its customers that range from $500 to $100,000. The interest rates range from 3.49% to 35.99% for the period that starts from 3 months and lasts till seven years.

Personalloans.com:

Personalloans.com offers loans from $500 up to $35,000 for those who qualify the requirements. But you cannot expect a maximum loan amount if you have a poor credit score. The interest rate ranges from 5.99% to 35.99%, and the loan terms can be obtained in lengths from 3 months to 72 months.

Credible:

Credible connects the borrowers to the potential lenders that offer loans that qualify for the loan. The lenders you will find through Credible are Ascent, Sallie Mae, MEFA, INvestED, EDvestinU, Custom Choice, College Ave, and Citizens Bank.

CashUSA.com:

CashUSA.com connects the borrowers with lenders that offer $500 to $10,000 for the applicants who qualify. But the borrowers are required to have a regular monthly income of at least $1,000 to qualify for the loan. The interest rate ranges from 5.99% to 35.99%, and the loan terms can be obtained in lengths up to 3 to 72 months.

BadCreditLoans.com:

BadCreditLoans.com advertises loan amounts ranging from $500 to $5000. The loan amount will be determined based on the lender you choose and the credit score. But People with a bad credit score might get limited loans up to $1,000. The interest rate ranges from 5.99% -to 35.99%, and the repayment period ranges from 3 to 60 months.

Understanding Bad Credit Personal Loans With Guaranteed Approval $5000

To get a bad credit personal loan with guaranteed approval, you must qualify for the eligibility criteria. In addition, you can follow some tips to improve your credit score to create more chances to be eligible for a loan. But if you urgently need a loan and have bad credit, you can seek alternative options to personal loans. 

5000 Dollar Bad Credit Loan Eligibility Criteria

You need to address specific requirements to qualify for a personal loan for 5000 bad credit. The eligibility criteria for bad credit personal loans guaranteed are as listed:

• You need to be 21.
• You need to be a country resident or have a residence permit.
• Provide proof of stable income.
• Have an active bank account.

Tips For Getting a $5000 Loan For Bad Credit

Improve credit score:

If you want to get 5000 dollar loan bad credit, take some time to improve your credit score to qualify for a loan quickly. Spend a few months making on-time payments to improve your credit score. Besides, any negative report reported on the credit might also wear off during the period. If you have high utilization, you can pay a high balance on credit cards as much as possible, and it will help you increase your score quickly.

Secured personal loan:

You need to find a lender that allows you to apply for a secured personal loan. You need to take funds using your valuable asset, such as a vehicle, as collateral. In addition, if you have a family or friend having a good credit score might help you apply with you as a cosigner. Lenders allow co-signers who take responsibility for the loan if you fail to do so.

You might get a bigger loan when you apply with a second person. However, it is crucial that if you default on your loan, you might severely damage the co-signer’s credit too by irresponsible behavior.

Seek an alternative to personal loans:

If traditional lenders do not fund you, you may seek alternative options to personal loans such as peer-to-peer loans, credit cards, home equity loans, etc. They have flexible requirements to qualify for a loan. However, remember never to use anything as collateral that you cannot afford to lose. And you should be sure that you can repay the loan before they seize your asset. The assets used as collateral are vehicles, home loans like home equity loans, or lines of credit.

What Are The Pros And Cons Of Bad Credit Personal Loan Guaranteed Approval?

Pros:

If you want to get bad credit personal loans guaranteed approval $5000, personal loans can stand as the most beneficial. Listed are the reasons why personal loans are beneficial:

Hep Borrowers build credit:

You make monthly payments towards the balance when you take a personal loan. Your lender reports these payments to the major credit bureaus: Equifax, Experian, and TransUnion. If you have a record of paying your payments on time, it might help you build your credit score. Your payment history accounts for 35% of the FICO credit score. The drawback is that it also counts your late payments or defaults on the loan that might damage your credit score and lead to difficulty getting credit in the future.

Eliminates the need for Collateral:

There are personal loans that do not need to pledge any collateral. It means you do not require to lose an asset such as a car or home when you default on your loan. But it is crucial to know that unsecured loans have higher interest rates. 

Easier to manage:

People usually take personal loans to consolidate debts like multiple credit cards. Personal loans have a single, fixed-rate monthly payment date that is easier to manage. While having several credit cards with different payment dates, interests rates, and other variables makes management a challenge. Suppose you qualify for a personal loan with a lower interest rate than your credit card can help you streamline your monthly payments and help you save your money.

Lower interest rates and higher borrowing limits:

Personal loans usually have lower interest rates than credit cards. Besides, you can also qualify for a higher loan amount, whereas you have certain limitations on your credit cards. If you have an excellent credit score and history, you can be eligible for personal loans with interest ranges between 6 to 8 percent. 

Flexibility and versatility:

Taking personal loans allows you to use them for different purposes, whereas you cannot use the funds for various purposes if you take other types of loans. For example, if you take a car loan, you can use your funds only to purchase a car and not for other purposes, while personal loans can help you pay the debt or pay off medical bills.  

Cons:

Loans are an excellent way to cover expenses, but some drawbacks come with taking a personal loan. Listed are the cons of bad credit personal loan guaranteed approval:

High-Interest Charges:

Getting a loan approval with a bad credit score might encounter higher rates of up to 36%, while the creditworthy applicants might qualify for a low rate of APRs. If you have sufficient equity in your home, you can also borrow a home equity loan, which means your home is used as collateral, and when you default on your loan, you might be at risk of losing your home. But home equity loans, student loans, home equity lines of credit, and 0% APR credit cards are the alternatives for loans that have lower rates of interest charges.

Extra Fees and Penalties:

To cover the fees of processing, lenders charge fees for application and origination and high-interest rates. In addition, you might be encountered with penalties if you have insufficient funds for payment or if you make a late payment. Besides, you might also come across financial institutions that charge repayment penalties. Therefore, it is crucial to be careful with fees and penalties that are responsible for increasing the loan cost.

Lead to Credit Damage:

Both your positive and negative payment history is reported to the credit bureaus by the lenders. Therefore, if you fail to make on-time payments or if you default on your loan, you might find yourself with a low credit score. In addition, if you take a personal loan, your balance will increase, accounting for 30% of your FICO credit score. 

Collateral Requirement:

People with a bad credit score might need to pledge assets as collateral to qualify for a loan. If you default on your loan, you risk losing your assets to your lender. Some examples of common collateral are assets like cars, houses, boats, or certificates of deposit (CD).

Unnecessary Debt:

Getting a personal loan depends entirely on your reason, but it might lead to excessive debt. Therefore, before taking a loan, evaluate the reason for borrowing the funds and if you find the best solution.

How To Apply For Bad Credit Personal Loan?

• Eligibility criteria: Check the eligibility criteria for the loan before applying. Different lenders have different requirements that you require to meet to qualify for a loan. If you are not sure you are eligible, you can call the lender’s customer service to discuss your circumstances. 

• Get your credit card report copy: A credit report is an accurate record of your financial history, and it is through the report that the lenders can judge your creditworthiness. To check your report, you can get a free copy of your report from the major credit bureaus- TransUnion, Experian, and Equifax.

• Compare options before applying: Every application you submit to the lenders lowers your credit score. Therefore, compare each of the lenders to check if you fit their requirements before applying.

Alternative Options For Bad Credit Personal Loan

Consider the following options an alternative for bad credit personal loans:

Peer-to-peer loans:

These loans are like personal loans, but they are funded by individual lenders instead of an institution. Investors like LendingClub and Peerform review your application before approving the loan. As your credit history and scores are checked by an individual investor, they may overlook some signs of creditworthiness, making it an excellent option for people who do not qualify for a loan from traditional lenders.

Some of the advantages of the peer-to-peer loan are that you might receive the fund in one business day after your loan is approved, and you do not need to have an excellent credit score. Besides, you get the flexibility to delay your payment without incurring additional fees. But you have some drawbacks as well, such as there is no guarantee that your loan will get funded on some platforms, and the review of your application might take longer to review than on traditional loans. In addition, you might also need to pay origination fees that are equal to 1 to 8% of the loan amount.

A personal line of credit:

It works similarly to a credit card. For example, you do not need to set a payoff schedule to pay off the debt, and you can tap on the credit line only when you need it. However, personal lines of credit might come with lower interest rates, while credit cards have much higher interest rates. But in a personal line of credit, you need to pay additional fees than the credit card, such as a monthly maintenance fee or annual fee. While on the credit card, even though they charge a yearly fee that offers rewards like cash back on every purchase, you would not find such rewards on a personal line of credit.

An advantage of a personal line of credit is that you can easily access funds without deciding how much to borrow upfront. It offers more flexibility to use your funds which you do not get in a personal loan. Moreover, a personal line of credit helps people with inconsistent income, and they do not always require to apply for a new loan. However, it has some drawbacks as well, such as you might be charged fees, if you keep the line of credit open, lenders might not qualify you, if you have a poor credit history.

Credit Card:

With a credit card, you can make purchases and pay off the debt little by little or once. With a credit card, you get a revolving line of credit rather than a lump-sum amount. This offers you the flexibility to use as you need, but you might need to remain on a specific limit. You can pay off the debt as much as you want or at least the minimum every month. But, this alternative option comes with a higher interest rate than the personal loan. Therefore, it is crucial to pay off the balance quickly.

Some advantages of credit cards are that some credit cards offer a 0% introductory interest rate for a period. You have the freedom to pay off the balance every month without incurring any extra fees. In addition, you can also earn rewards if your credit card comes with such a program. But you will have some drawbacks, such as you might have higher interest rates than the personal loans, if you make a late payment, the credit card company can cancel your introductory APR. In addition, if you cannot stop borrowing, you might be buried in debt.

Home equity loan or home equity line of credit (HELOC):

Though both the loans are different, both involve borrowing against the equity.

• A home equity loan: It is a mortgage where you get a lump-sum amount of money that you need to pay off on a set schedule. The equity in your home determines the amount you will receive, and their terms range from 5 to 15 years.
• HELOC: It functions like a credit card. You can borrow money within a specific limit or as your need demands, and it is backed by your home that comes with a variable rate.

If you want to move forward with these alternatives, you will need to gather information like your property value and how much you owe on your mortgage. In addition, while applying for a loan, you need documents like personal identification and income information. Before the lender approves the loan, they will reassess the value of your home. You will receive your funds when they agree to your application.

Some advantages of these alternatives to personal loans are that they offer lower interest rates than the personal loan, but you will have borrowing limits, and it depends on your equity. Besides, you have the flexibility to use your funds for anything you desire. The drawbacks are that lenders might seize your home as you use your home as collateral if you cannot repay your debt. In addition, your application might take longer to get approval than other loans.

Conclusion 

Bad credit personal loan guaranteed approval might be excellent news to you. But it might be frustrating when you know that a loan is not enough to cover your expenses. However, you hardly have a guaranteed loan approval with bad credit, while getting approved for a large loan can be challenging. Choosing the right lender and getting approved for a loan signifies winning half the battle, but securing a loan with a large amount won’t fix your trouble if you fail to examine issues and work towards a better credit future.