Guaranteed personal loans sound like a sure bet, but here’s the catch: They don’t exist. You can get preapproved for a personal loan to find out what terms you might qualify for. Bad-credit loans with low or no minimum credit score requirements are also an option, but some of these loans can be predatory due to sky-high rates and fees. If they’re marketed as payday loans, that’s a red flag.
If you need a personal loan but have bad, little, or no credit, it’s possible to find reputable lenders to work with. We’ll walk you through how to find loans you’re likely to qualify for and what you can do to improve your odds of approval.
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Lenders can’t guarantee approval on a personal loan because every borrower is different. Certain factors might make one person a more likely candidate for a loan than another, but it’s up to the lender to decide who to approve. It does this on a case-by-case basis when someone applies for a loan.
When approving borrowers for personal loans, many lenders consider the following:
Of these factors, credit scores tend to carry the most weight. Lenders use them to measure risk. A higher credit score indicates lower risk and a lower score suggests higher risk. Essentially, what a lender is concerned with when someone applies for a personal loan is whether they’ll pay it back.
The minimum credit score required for a personal loan varies by lender. Some lenders expect you to have a score of 620 or higher, but others may have no minimum credit score requirement. But just because a lender doesn’t have a credit score requirement doesn’t guarantee loan approval.
Some loan options offer approval to people with bad credit or no credit at all, but they’re not the same as traditional personal loans offered by banks or online lenders. These loans are typically short-term, may not require a credit check, and often carry much higher interest rates and fees.
Examples include payday loans, title loans, and pawnshop loans.
Type of loan | How it works | Approval requirements |
Payday loan | Lenders advance you money against your next paycheck, and you repay it once you get paid | No collateral or credit check, but often require proof of income |
Title loan | Borrow money using your car title as security and pay it back within 15 to 30 days | Vehicle acts as collateral, but a credit check and proof of income aren’t always required |
Pawnshop loan | Get a loan based on the value of your collateral and repay it within 30 to 60 days | Use your personal items as collateral, and a credit check usually isn’t required |
These types of loans can put quick cash in your hands regardless of credit score, but keep these drawbacks in mind:
For these reasons, we don’t recommend these borrowing options when seeking guaranteed approval loans.
Personal loans with guaranteed approval don’t exist, but you can prequalify for loans and compare rates from different lenders. Doing so can help you narrow down the list of loan options you might have the best chance of getting.
Prequalification or preapproval involves sharing basic information about yourself with a lender. For example, you tell the lender how much you want to borrow, your income, and your estimated credit score range.
Lenders use that information to generate a rate quote, which breaks down:
No hard credit check is required at this point; prequalification just lets you see what you might qualify for. You’ll need to complete a full application and agree to a hard credit pull for a lender to determine whether to approve you and at what terms. Note that hard credit checks can detract points from your credit score.
Using a loan marketplace to get rate quotes can make this process easier. These platforms allow you to compare loan options from different lenders in one place. Here are two lending marketplaces we recommend.
LendEDU rating: 5.0 out of 5
Credible stands out as a loan marketplace that offers a wide array of loan options from various lenders. You can compare offers before making a decision—checking rates on Credible won’t harm your credit score.
With Credible, the application and approval process is fast and online-based, making it a convenient option for those seeking rapid results.
LendEDU rating: 4.8 out of 5
LendingTree offers diverse lending options and the ability to prequalify with multiple lenders at once. This feature allows you to save time and compare loan offers that you’re already approved for.
In addition to its versatile services, LendingTree provides an intuitive user interface and comprehensive educational resources to help you choose the right loan.
If you need a personal loan but you’re unsure of what you might qualify for, you can take the steps below to improve your approval odds before you apply.
If you don’t need a loan right away, you could also work on improving your credit score so it’s easier to get approved later. Some of the best ways to raise a credit score include paying bills on time, reducing the amount of debt you have, and not applying for unnecessary new credit.
The easiest loans to get approved for can be payday loans and secured personal loans.
Payday loans often favor accessibility over affordability, with high interest rates and expensive terms. They are often marketed to individuals with low credit scores. However, consider their costs and risks before proceeding.
A specific numerical credit score can’t guarantee loan approval, but a high score can improve your chances. Lenders tend to favor borrowers with scores above 700. However, they consider other factors, such as income and employment history. Even with a high credit score, loan approval isn’t guaranteed, and each lender has unique criteria.
If you’re having trouble getting approved for a loan, consider credit builder loans or secured loans, which require collateral. You may also consider finding a cosigner or co-borrower with a better credit history. Improving your credit score by paying bills on time and reducing debt can boost your approval chances.
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