How to Get Guaranteed Approval for Online Loans

As an unexpected expenditure arises from nowhere, you think of online loans because these loans claim to be guaranteed approval. It often makes you wonder that if you can have the loan approved regardless of your credit history. 

Many borrowers think that 100% guaranteed loans do not exist, that this is a stratagem followed by lenders to attract the traffic, but reverse is the reality. No direct lender will hesitate to lend you money if you convince them that you have repayment ability.

The meaning of guaranteed approval

When you see billboards read “guaranteed approval,” you may think that loan will be disbursed instantly – with no fuss. Here, “guaranteed approval” means you will get the loan on flexible terms and conditions. These loans aim at financing your emergency needs and hence no hard inquiries are put out. You can get the loan even if your credit history is bad. 

A lender lends you money if you promise that you will pay back the debt. To ensure your credibility, your lender will run a soft credit check. It will not affect your credit score. More often than not, you get what you quote, but sometimes the amount is restricted after considering your income statement. However, not all lenders follow this policy as they aim to trap you into a vicious circle of debts. If you get more than you can afford, you will make defaults and extend a period of your loan or take a new loan to pay back existing loans. This cycle continues to form a debt spiral, which makes all but impossible to get out of debts. 

So choose a reliable lender who considers your income statement to estimate your reimbursement capacity.

How to improve the chances of 100% approval

Guaranteed approval is not a myth if you prove your lender that you will pay off your money on time. If you are struggling to have the loan approved, you should follow these ways to improve your credit worthiness. 

• Improve your financial report

Good credit scores allow you to negotiate for the interest rate with your lender. Online loans come with high interest rates, but a lender can bargain if your score is fair. To strengthen your report, try to pay all your dues on time and clear your credit card bills. This will reduce your debt-to-income ratio. Make sure that you do not consume more than 30% of your credit card limit even if you use it in emergency. Review your credit card report so that it does not consist of an error that affects your score. Contact your credit bureau if you spot any false entry. 

• Reduce your borrowings

Borrowing multiple debts take a toll on your credit score and ruin your finances. It becomes challenging to keep tab on all due dates and chances are you fall behind payments. Consequently, you end up with taking a rollover loan. The best approach to ignore this turmoil is not to take a new loan unless you have paid back the previous one. Otherwise, lenders may presume that you rely on borrowings only. Do not use credit cards as long as you can afford to pay in cash.

• Do not apply with multiple lenders 

Lenders understand that you need funds urgently and therefore they do not follow long traditional procedures to approve your application. The amount is disbursed within the same day so you do not need to get flustered. Sending in multiple applications may be inferred as you are under dire need of loan, which is not appreciated.

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5 Mistakes Borrowers Must Avoid to Keep Debt Web at Bay

Loan reimbursement is not as easy as taking it. Approval brings a broad smile on your face as it allows you to meet your needs, but as repayment terms come closer, you begin to worry about it. If it is about paying a few of your credit card bills, it is not a difficult thing to manage, but getting out of debt is a labyrinth that a small mistake can cause wreak havoc on your finances.

When you need a small amount of money even if your credit report is poor, you apply for phone text loans. You had thought that you would reimburse whole of the debt without delays, but the real picture is absolutely reverse. Here are the mistakes that make impossible for you to get out of debts.

Old spending habits

Everybody loves to live a comfortable life; going restaurants, driving car, and shopping cost you much more than you can afford it. If you have owed money, you need to understand that this is your out-of-pocket expense. If you do not restrict your expenses, how you will be able to pay back your debt? 

You should start having meals at your home. Watch TV for entertainment; it is cheaper than going to the cinema at weekends. Do not use your car for short distances. 

You do not have savings for unexpected expenses

In an attempt to pay back your debt, you may be tempted to dole out your savings to reimburse multiple debts. This is often regarded as contemptuous because you are left with no emergency funds. What if an unexpected expenditure arises? How will you meet them? In the end, you will use your credit cards and take another text loans.

To avoid being tied up with the painful circle of debt, you should choose other options such as debt consolidation and balance transfers. If your savings are very high, you can split them in two parts: emergency funds and debt repayment. Make sure that you have three-four month worth of your expenses saved after paying off outstanding debts.

Closing accounts after the dues are paid off

Many borrowers close their accounts once they have cleared their balances. It is good that you pay off all your bills, but do not rush to have them closed. Direct lenders also consider credit available to determine your score. If your score is high, you can negotiate for interest rates while applying for short-term loans.  

No priority to debts

This problem arises when you are burdened by multiple debts. The best solution is to make a budget and set aside instalments every month. Refrain yourself from using that money for another expense. Remember that no expense can be more important than meeting your debts and use your emergency funds in case any unexpected outlay arises. 

Creating an unrealistic budget

Budgets are paramount to stay within financial boundaries. However, it should not be overemphasised, or else you will end up with spending more than you should. With the help of a budget, you will have a clear vision how much you receive and how much you spend. You will also spot some loopholes in spending. However, it will keep you from being spendthrift as long as you use banknotes. Avoid using credit card as cash payments will help you cut down on your restaurant bills, entertainment, shopping, and the like.

The Bottom Line

Now that you have understood how you can get rid of your debts, but there are still lots of things to explore. To avoid debts, you should find out another source of income, pay your bills on time, and cut down on your expenses. 

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Does Guaranteed Acceptance of Loans Exist? Yes, It Does

You must have seen several banners and billboards that read guaranteed approval, but the question is does this term exist? Before applying for a loan, you always check your credit report because your application is cast aside if your score is less than stellar.

In this difficult situation, direct lenders like London Loan Bank act as knight in the shining armour. Direct lenders do not have as strict benchmarks as banks and therefore you receive loans even if your credit history is extremely bad. Before knowing whether or not guaranteed acceptance of loans exists, you should know what it is.

What is guaranteed acceptance?

Guaranteed acceptance means a loan company will finance your needs regardless of your credit score. Whether it is good or bad, you will have your loan approved.

Since all lenders follow different policies, some of them may be reluctant to approve your loan application. However, loan companies have lenient parameters and therefore they lend the applied amount easily.

Guaranteed approval is applicable in case of short term loans only. It is true that your loan will be approved at once. If you have come of age and you have a full-time employment, the amount will be disbursed. London Loan Bank will not consider your credit check. However, it may conduct soft inquiries, which do not affect your score.

Summary

Undoubtedly, guaranteed acceptance of loans exists. However, lender will consider other things such your employment type or salary to determine the amount to be sanctioned.

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Things That You Must Know about 12 Month Loans

There are so many short-term loans available in the market that it becomes difficult to choose the one without any confusion - an embarrassment of riches. You may encounter the need of a loan even if you have a bad credit. 

Unfortunately, banks do not entertain applicants with less-than-stellar credit scores. On the contrary, direct lenders can finance your needs as long as you have a repayment capacity. Among all options available in the market, 12 month loans with no credit check from direct lenders are considered to be the best option. However, there are several things that you should know about these funding sources.

These are unsecured loans which require no guarantee and collateral and each instalment is paid as immediately as you receive your next paycheque. You can be tempted to apply for such loans as the procedure is not hectic (you do not have to get around lenders for the paperwork) and funds are credited without further ado. 

Before filling the application, you have to consider the following points:

Interest rates

Interest rates and fees can vary from a lender to lender. You must contact multiple lenders to know about interest rates and fees and sign the contract with one, who provides the same amount at lower interest rates. However, make sure that you are able to pay all dues on time. Otherwise, you will be entwined with rollovers. 

Your need 

Though you can get 12 month loans on easier terms, you have to reimburse the entire loan in the end. If you continue taking yearly loans, you might be thrown in a permanent cycle of debt. Therefore, you should not apply for these loans as long as it is not necessary. Try to cut down on your expenditure such as going out for food and visiting cinema. This will help you increase your savings that you can utilise in cash payments.

Look out for hidden fees

Make sure that you read all terms and conditions before signing into a contract. Do not hesitate to ask your lender if you have any doubt about any terms. Peruse all terms and conditions to discover any hidden costs. 

Prepayment charges  

Not all lenders provide this facility to the borrowers. With prepayment charges, you can pay off your debts quickly without bearing high interests. However, some loan sharks impose penalties if you repay more amount than the agreed. Ask your lender if the contract has a clause of prepayments without penalties. If this is the case, you should try to repay more than a minimum amount. 

The bottom line

A direct lender can provide you the 12 month loans without any collateral and guarantor. This is the easiest option, but it is still a difficult option as you have to make high interest payments. If you are not certain that you will not be able to pay off all dues on time, you should opt for other alternatives such as short-term personal loans and credit card use. 

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