The word guaranteed seems to pop up more and more in regard to the loans market, particularly the sector that offers loans to borrowers with a bad credit history.
Many bad credit online lenders advertise as giving guaranteed loans. If you read the small print it is not always quite as it seems. A bad credit lender is able to accept a short term loan application quicker than a prime lender as no credit check is carried out using teletrack or credit rating agencies, which can hold up the loan application process.
Bad credit lenders, nevertheless do need to carry out some kind of check. This is known as a status check and basically it involves the lender verifying that you are who you say you are as per the details you entered
on your online short term loans application form. For example, they may well contact your employer to check you are in full time employment.
They will also require documentation that confirms your identity such as a valid driving license or passport.
In sum, the bad credit lender will advertise as giving guaranteed loans. The reality is that although in principal it will approve bad credit instant loans decision loans, it will not be until you provide full documentation and a status check is carried out that the loan will be signed off.
Bad credit loans instant decision – further information:
The credit score of an individual plays a vital role in their overall financial well being. The better the credit score, the better placed, he or she is. One of the most prominent disadvantages of a poor credit score is the inability to get loans in the future. This is because a poor credit score more or less reflects an inability to repay loans in the past. Naturally, no lender would like to approve a loan of an individual whose score isn’t good enough.
If you have a poor credit score, then that could mean difficulty in getting your bad credit loans instant decision approved. It would also mean difficulty in getting property on rent, higher premium rates for insurance, security deposits for utilities, and so on. But getting a loan approved remains by far the most difficult situation in such a scenario.
It is therefore, important to keep 
your credit score in good shape. For this you need to cut down on wasteful expenses, increase your savings and make your repayments on time.
However, all these happen to be long-term solutions and would bear fruits in the long run. What if you are in urgent need of financial assistance, and your credit score is in bad shape? Your application for a loan is very likely to be rejected. Relax, do not lose hope.
These days there are quite a few financial institutions, which can help you with a bad credit loans instant decision. These institutions offer loans to individuals with poor credit scores. However, in most cases, approval takes a bit of time. If you want a bad credit loans instant decision, then there are a few steps that you can take, which would help you in this regard.
One of the best things to do, in this regard, is to get your paperwork straight. Get all the papers and documents updated and be ready with them to be furnished as and when asked by the lending institution. These may include your residence proof, your employment details, salary slips, etc. Make sure you have them handy.
Another thing that you should do is to decide whether you want to opt for a secured loan or an unsecured loan. An unsecured loan usually carries a higher rate of interest and takes more time for approval. A secured loan on the other hand, is generally cheaper and gets approved instantly. Depending upon your requirements you can take your decision.
Loans for people with bad credit usually carry a higher rate of interest. So you should be aware of that and should be in a position to repay the high interest rates. If you default in it, then it could spell doom for you. So, make sure that you do your calculations to see if you are comfortable in paying a particular rate of interest.
If you wish to know about the various financial institutions which can help you with a bad credit loans instant decision, then the internet could be of great help for you. All you have to do is to search the internet, and you will get a long list of such lenders. Make sure that you compare their rates, policies and other details. This would help you in getting the lowest rate which is available to you.
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{ 3 comments }
It seems funny to me how many subprime lenders call their loans guaranteed. We all know of course that this is a load of rubbish. Sure they may not do a credit check but you will still have to provide them with identity documents. If they are not satisfied they will not approve the loan. Now you tell me how anyone can guarantee a loan!
Hi Adam,
Its a valid point. As a unique selling point, many payday and bad credit lenders will promote themselves as giving instant decision or guaranteed loans.
In theory, yes, anyone can guarantee a loan in principal. The reality is , that even though these lenders do not use credit reference agencies to check a credit score, they will in fact carry out some checks – such as proof of employment, which is more commonly known as a status check.
The fact that they use words like ‘guaranteed’ and ‘instant’ does not take into account that somewhere along the line you will have to meet their criteria to be approved for a loan. This may indeed be quick (a status check is quicker than a credit check) but work still has to be done by someone before a loan is approved.
Hillary
I understand that these bad credit loans lenders can give an instant decision but Do you think it really is likely that the lender will call my employer if i want to take up a loasn?