Was an application for credit rejected due to a history of bad credit? Almost all lenders have tightened their eligibility criteria over the last couple of years in order to reduce default rates. A reluctance by mainstream financial institutions to lend money has increased the popularity of easy approval loans. Past credit problems, such as defaults and bankruptcy, are not a bar to guaranteed loan acceptance.
The absence of credit scoring leads to guaranteed loan approval for any applicant who is able to meet a different set of eligibility criteria. A specialist bad credit loan lender is more interested in the legitimacy of the application and whether they can afford to repay the debt at the end of the month.
Credit Rejected? Get Guaranteed Loan Approval from a Pawnbroker
A loan from a pawn shop involves providing collateral, such as gold, jewellery, silver, electrical goods, watches, art work and antiques, to secure the advance. The value of the collateral will be assessed by an expert and a guaranteed loan for bad credit for up to 50% of the items value will be provided.
It’s the perfect loan for unemployed people because the only check that is carried out pertains to the identity of the applicant. Once agreed, the customer will be given his cash and a receipt for the transaction. The collateral can be redeemed by paying off the debt 30-days later.
Failure to redeem to the item by clearing the balance won’t lead to collection agency activity, but it will lead to the loss of the collateral. The size of the advance is such that there is always sufficient money left to clear the outstanding balance without the creation of any further problems.
Guaranteed Loan Acceptance from a Payday Cash Advance Loan Lender
Payday companies offer easy approval loans to customers without the need for collateral or security. Although there aren’t any credit checks for a payday cash loan, there are other criteria that must be complied with. The applicant must be an American citizen, over-18 years old and have a full-time job.
Provided that the above criteria are met, all that remains is to provide proof of identity and checking account information. The lender won’t provide a guaranteed acceptance loan in cash due to the risk of fraud, the money will be sent to the customer by bank transfer. It will be received within a maximum of 24 hours.
Defaulting on an easy approval loan from a payday lender will result in interest and charges continuing to accrue. The account will also be passed to a debt collection agency and this will result in unwelcome creditor contact. It is clearly important to have a way to repay the full balance at month end.
The Cost of a Guaranteed Loan for Bad Credit Scores
The cost of borrowing money is usually the same for both payday and pawn shop loans. It will cost $25 to borrow $100 for just 30 days. Rates vary between bad credit lenders so it’s important to perform interest rate comparison before signing on the dotted line. Only deal with lenders that are open about their charges.
Many states strictly regulate the terms of payday cash advance loans so there is a possibility that the maximum APR will be capped. Guaranteed loan approval can help someone out of a financial hole, but they are an expensive way to negotiate an income shortfall.