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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