Most traditional lenders will not issue a guaranteed acceptance personal loan. This type of loan is typically z very high risk to the lender, requiring very little from the borrower in terms of credit, income and other financial verifications. Because the loan is so risky, banks typically will shy away from this type of deal. If you need this loan, consider approaching a high-risk lender, payday lender or "bad credit" lender, but do so with caution.
"Guaranteed acceptance" is a term used for marketing loans to the public; it means little in terms of the actual loan structure. Often, high-risk lenders use this term to attract borrowers with poor credit. "Personal loan," however, is a lending term. This term can apply to any loan given to a person without a specific purpose. For example, while a mortgage is intended for use on a home, a personal loan can be spent on medical expenses, rent, car expenses or simply on a vacation. Because these loans are so flexible, they are a high risk to lenders, again leading many traditional lenders to shy away from this option without collateral.
You cannot go to your bank or mortgage broker for a guaranteed acceptance personal loan unless you have excellent credit and a high income. In this case, however, it would be more advantageous for you to get a secured loan to reduce your cost. Therefore, the only borrowers who will benefit from these loans are those with low credit, a wavering income or other problems that disqualify them from lower-risk loan options. If this describes your financial situation, be prepared to pay a premium for a loan. High interest rates and financing fees will be expected with a high-risk personal loan.
The best place to seek out this loan option is from a high-risk lender. You can find high-risk lenders by asking your bank or mortgage lender for a recommendation. Always verify that a lender has a good reputation by reading reviews, checking with the Better Business Bureau or calling to ask a representative about the lending process. If you cannot find a lender, a payday loan is another option. This loan uses your anticipated paycheck as security against a loan in your name.
All of the options described above come with a number of risks. Payday loans have earned a bad reputation because lenders routinely issue loans borrowers cannot afford, capitalising on default fees and long lending cycles. High-risk lenders may do the same, anticipating a high level of default on the loans. They compensate for this by charging exorbitantly high fees of 30 per cent or more. For a safer loan option, consider using collateral such as a savings account, house, stocks, car or other asset to take a secured loan from a more traditional lender.