Loans are incredibly useful when you need a large sum of money immediately. In today’s lifestyle, it is not hard to come by such a situation. Nowadays, there are plenty of options and sources on getting the money. However, it can become fairly difficult if you have a bad credit score.
A bad credit means that you are already dealing with financial troubles including debt. Not only it is stressful to think about qualifying but paying it back as well. Fortunately, it is not impossible to get a loan even if you have bad credit and receive a guaranteed approval. You won’t be eligible for bank loans but you can definitely borrow money from direct lenders.
What is a Credit Score?
In Canada, a credit score is a three-digit number that shows lenders and banks how you have managed your credit accounts in the past. A score below 600 is known as bad, a score above 650 points is good and anything equal to 750 points or above is excellent. In addition, it is very important to understand what makes up your credit: new credit accounts, types of accounts, credit history, the balance owed, and payment history.
Who are Direct Lenders?
Direct lenders provide money directly to the borrower. There is no third party or intermediary involved. Direct lenders can be online or brick and mortar companies. The lenders openly advertise about their loan packages so it is not hard to find them.
They are also quite flexible in their policies and approval process. You will be able to find specific options if you have bad credit. You can even get a 100% guaranteed approval if you are lucky.
How to Choose a Lender for a Guaranteed Approval?
Nowadays, many people suffer from bad credit scores because financial troubles are becoming common. Of course, it only means that people are also seeking loans more than ever. There was a time when banks were the most common source for borrowing even for people with bad credit.
These institutions are known to be formal about money and are trustable. However, due to their strict policies and approval processes, people started to look for alternative methods. Soon, private loan lenders became quite popular.
It is not difficult to find a reliable, transparent, and trustworthy direct lender because most of them have well-established websites. This way, one can find plenty of information about the company and be satisfied with their repute before applying for loans and seeking guaranteed approval.
Things to Consider when Selecting a Bad Credit Lender
You will find multiple promotions of such direct lenders. This is why it is important to be careful. You never know when some company is a scam. If a deal seems too good to be true, always look for the catch. The best way to choose the most suitable direct lender is to thoroughly research them.
Go to their website and find out how long they have been in the loan business, how many bad credit applications they accept, what kind of loan packages they offer, how do they calculate interest, what is the guaranteed approval rate, what are their eligibility criteria, what is their approval process, etc.
Another important thing to read is the reviews or testimonials from previous borrowers. You should also look for any certifications by the financial authorities of the country you live in.
Who is the Best Loan Lender?
Choose a lender who reports to a credit bureau. This way, you can improve your credit score when you pay back on time. Therefore, loans are actually helpful for credit score in the long run. However, it is incredibly important to learn to manage your finances and save money for unexpected expenses.