Unsecured Personal Loans Guaranteed Approval

Unsecured Personal Loans Guaranteed Approval: Do They Exist?

There is no such thing as unsecured personal loans with guaranteed approval. Even if someone has perfect credit, the lending institution may reject them for any number of reasons. These can include everything from too much debt to a current income that does not meet a minimum threshold.

While there is no such thing as guaranteed approval, there are some lenders that come close. These institutions often have the lowest standards and most flexible requirements on credit history. They usually cater to people who want an unsecured personal loan on bad credit and come with unfavorable terms.

Best Unsecured Personal Loans “Guaranteed” Approval Alternatives

Loans	Amount	Cost / APR ?	Bad Credit	Features
(Personal loan)	$500 - $35,000	APR: Starting at 5.99% ?	Allowed	Loan term 3 months to 6 years Credit check type: Soft ? Next-day deposit: In some cases ? Min creditscore: 580 High approval rates ? Time for decision: 1.5 min ? Type of service ?
	$100 - $1,000 $1,000 - $5,000	$15 - $300 ? APR from 6.9% ?	Allowed	Same-day deposit: In some cases ? High approval rates ? Time for decision: 1.5 min ? Type of service ?
(Personal loan)	$300 - $35,000	APR: Starting at 6.90% ?	Allowed	Loan term 2 months to 7 years Credit check type: Soft ? Next-day deposit: In some cases ? Min creditscore: 550 High approval rates ? Time for decision: 1.5 min ? Type of service ?
(Personal loan)	$500 - $40,000	APR: Starting at 5.99% ?	Allowed	Loan term 2 months to 5 years Credit check type: Both ? Next-day deposit: In some cases ? Min creditscore: 580 High approval rates ? Time for decision: 1.5 min ? Type of service ?

Unsecured Personal Loan: Bad Credit Is Never “Guaranteed”

Personal loans do not come with guarantees because nothing in life is guaranteed. For instance, former Cleveland Cavaliers basketball player Mo Williams said, “Guarantee we’re going to win the series? Yeah, yeah,” when asked about the Eastern Conference finals in 2009. Despite having LeBron James, the Cavaliers lost to the Orlando Magic 4-2.

There are countless other examples of “guarantees” gone awry. Even for the personal loans that are almost guaranteed, accepting them is not always in the best interest of the borrower. These types of loans can be predatory as they target low-income individuals who end up in an endless cycle of debt.

These loans typically have higher interest rates, regardless of the loan amount. The exorbitant interest means people may pay several times the initial value of the loan. There may also be hidden expenses, such as origination fees and early-payment penalties.

Consider this. A lender may approve a loan that charges $20 for every $100 that someone borrows. That means the APR is over 400%. Now, borrowers do not pay one-quarter of payday loans on time for nine payment periods or more. Based on the rollover total, the borrower may end up paying more than $400 in fees alone.

Your Options

Proceed with Caution

If someone is committed to an unsecured personal loan, they should at least be cautious. Beware of questionable lenders who consistently pressure borrowers into signing loan agreements or who make claims that are too good to be true. One way to check the reliability of a lender is with the Consumer Financial Protection Bureau’s Consumer Complaint Database.

Also, be diligent about the details. While the higher interest rates are par for the course, some lenders will try to sneak extra fees into the fine print. For instance, an origination fee can result in a borrower paying 1% to 8% more on their loan. Furthermore, be wary of lenders who do not perform credit checks before approving the loan.

Consider Alternatives

One alternative is to use credit cards instead of taking out a payday loan. Credit cards often have lower monthly payments, so users do not have to pay back as much money in fees and interest. Currently, the average credit interest rate for existing accounts is 15.1% and 19.02% for new ones.

Borrowers should also consider payday alternative loans. This option, which typically comes from federal credit unions, ranges from $200 to $1,000. Because credit unions have a limit on application fees, interest, and rollovers, they are often a better financial investment.

Additionally, it never hurts to take steps to improve an existing credit report. After someone gets their history from one of the credit bureaus, they should correct any errors and consolidate debts. Other tips include paying bills on time, applying for credit cards when necessary, and limiting hard inquiries.

Pros and Cons of Unsecured Personal Loans

Unsecured loans feature a simple application process and come with high rates of approval. Borrowers also do not have to worry about losing any personal property if they default on the payments. Instead, the loan will incur late fees and a possible increase in the interest rates.

Unsecured personal loans are risky investments. For starters, they tend to have higher interest rates and monthly payments. Conversely, a secured loan will often have more favorable terms. Because the investments are risky, though, lenders will limit the amount of money people can borrow, especially compared to other types of loans.

Joseph Smith
Writer and editor

Joseph Smith is an experienced freelance writer with over 11 years of experience. His area of expertise includes finance, loans and lending. His work has been featured on various large websites including this one.
Read more about us »