About Bad Credit Loans Guaranteed Approval
Trying to get bad credit loans guaranteed approval seems to be a thing of the past. Lenders do not want to let people borrow money because they are worried that they will not get the money back. However, there are ways for getting this and the mail that you are getting about them is not just junk mail. The think that you need to do is look into the pros and the cons.
Bad credit loans guaranteed approval are also known as payday loans. These are short term loans and do have a lot of risks to them. However, they can also have a number of benefits that can outweigh the risks. The main benefit is that there are no credit checks, which is how you are guaranteed the approval no matter how bad your credit history is.
However, that will mean that you have to meet a few requirements. These requirements can change from company to company. The lenders are putting themselves at high risk wit these bad credit loans guaranteed approval so they need to ensure that your current financial situation is good. You will need to earn a certain amount of money each month so that you can definitely pay the money back. You will only take the money for a maximum of 31 days so you need to have the paycheck to be able to afford your normal outgoings and be able to afford the amount of the loan.
There are high interest rates involved but these are only put in place after the 31 days are up. If you pay the money back on time, there are usually set fees involved. However, if you leave it, you could find yourself paying 1000s in interest over the years; most APRs are between 1000 and 3000 percent.
There are no fees for repaying the loan early, unlike with bank loans. The bad credit loans guaranteed approval lenders will actually praise you for the early repayment by cutting down the amount of interest that has accumulated. They are more happy that you have paid the money back.
These loans can help your credit rating because they can show that you are able to borrow money and pay it back on time. However, if you forget to pay it back or you decide to keep the money, they can put a black mark on your report and ruin your rating. Most companies will understand that it is easy to forget about who you have borrowed money from so some will actually set up a direct debt for your bad credit loans guaranteed approval; this will mean that they can take the money straight out of your account on the day that it is due and it is one less thing for you to worry about.
There are pros and cons to bad credit loans guaranteed approval and you will need to decide whether the risks outweigh the benefits. You never know; this may be the way to help your credit rating and be able to afford everything for the month.