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Guaranteed Installment Loans for Bad Credit Aren’t Really a Guarantee

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<p>If you’re hard-up for cash, guaranteed money never sounds like a bad thing. However, many creditors use the word guaranteed to lure you into an agreement that will put your farther in debt for a longer period of time. Here are a few reasons you should probably steer clear of guaranteed installment loans for bad credit.</p>::Pexels

If you’re hard-up for cash, guaranteed money never sounds like a bad thing. However, many creditors use the word guaranteed to lure you into an agreement that will put your farther in debt for a longer period of time. Here are a few reasons you should probably steer clear of guaranteed installment loans for bad credit.

There Are No Guaranteed Installment Loans For Bad Credit

Not everyone is guaranteed to be approved for the money they need. If you have bad credit and are unable to get loans elsewhere, there is probably a reason why. Anyone guaranteeing you a loan should be approached with caution.

It is also important to keep in mind that even though a company says it can guarantee you a loan with bad credit it may not be able to finance the amount you need. For instance, if you need $5,000 desperately for some type of emergency but they were only able to finance you for $1,000, that wouldn’t be very helpful. You’d only get a portion of what you needed and wind up paying a ton in interest.

Many Have High-Interest Rates

Oh, yeah. Most installment loans for folks with bad credit are extremely high-interest. In many cases, they have more than 26% interest. This makes them practically impossible to pay off. You’ll also have another item on your credit report for up to six years, depending on how long it takes you to pay off.

They Aren’t Interested in Your Financial Well-Being

Lastly, companies offering up guaranteed installment loans aren’t interested in your financial well-being. If they are guaranteeing anyone money it means they are not interested in your ability to pay it back. The last thing any of us needs is a collection account hanging over our head.

What To Do If You Need Cash Now

Most people who are looking for installment loans and have bad credit don’t have great money habits, to begin with. That doesn’t mean you don’t have options though. If you need money right now, here are a few things to consider.

  1. Sell items around your home you don’t use anymore. You’d be surprised how many people would pay for things collecting dust around the house.
  2. Ask a family member or friend for a loan. Many friends and family will understand you are in a tight spot. Just make sure you set up a plan to pay them back. This will prevent you from paying interest or having additional items on your credit.
  3. Get someone to co-sign a loan for you. This can help decrease your interest rate as well as help you increase your credit score (if you make on-time payments).

More importantly, if you find yourself having trouble with money on a regular basis, you should consider seeking the help of a professional. Getting the input of a financial advisor can change the way you manage your money and set you up on the right track.

Readers, have you ever fallen for the trap of a guaranteed installement loan?

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If It Says “Guaranteed Payday Loan No Third Party” Run Away!

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Guaranteed Payday Loan No Third Party

If you’ve been struggling with debt, your credit has likely taken a hit as well. For me, having a low credit score and a high level of debt caused me to panic. How was I going to survive? The scary thing is – predatory lenders know when you’re feeling overwhelmed. That’s when the “Guaranteed Payday Loan No Third Party” envelopes begin coming in the mail.

How to Spot Predatory Lenders

Predatory lenders are everywhere. These lenders are referred to as being predatory because they tend to target people with bad credit, a lot of debt, and low incomes. Most of the time, they don’t truly care whether you can pay the loan or credit card off. Not to mention, most types of predatory lending also comes with a high-interest rate.

Consolidation loans and other quick-money loans can be tempting, especially if you are struggling financially. However, taking on new debt with a high-interest rate will only add to your financial stress in the long-run. You can typically identify predatory lenders by the wording used in their offer. They will use the words “guaranteed approval,” “payday loan,” “bad credit, no credit,” or “money now.”

Avoid Offers Like “Guaranteed Payday Loan No Third Party”

I’ve had a number of these “Guaranteed Payday Loan No Third Party” offers come through my email and land in my mailbox. At times, it can be hard to turn down the extra cash. Many of the lenders even market the offers as a “consolidation loan.” Having read/seen the mistakes myself and others have made, I know better than to fall victim to one of these lending traps. Here’s why…

  1. They simply continue the cycle of debt and feed into it. Payday loans, guaranteed approval loans, and most bad credit loans are feeding into the cycle of debt. Generally, the interest is so high on these loans they are practically impossible to pay off.
  2. No loans are guaranteed. If anyone guarantees you approval for anything, especially if your credit is bad, it should be a huge red flag. You’ll likely end up paying three times the amount of the loan.
  3. Almost all of the “guaranteed” loans come with a high-interest rate. We are talking 22% interest and higher. If you’re already struggling, this will be nearly impossible to keep up with.
  4. You may have to provide collateral to be approved. Some guaranteed approval loans require you to put up your house or car as collateral on the loan. Don’t do it! You don’t want to
  5. These lenders don’t honestly care about your ability to pay off your loan. As mentioned above, many of these companies are feeding into the cycle of debt. If they are guaranteeing you money without knowing anything about your finances, they don’t care about your ability to pay it off or your financial freedom.

Even in the tightest financial situation, you should avoid these predatory loans at all costs. Consider getting a loan from a friend or transferring some of your debt to a credit card with a lower interest rate. Whatever you do, try to avoid anything that guarantees approval.

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