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Guaranteed Personal Loan Approval

Despite some lenders’ claims to the contrary, there is no such thing as guaranteed personal loan approval. All lenders evaluate loans and borrowers and chose to deny loans to some borrowers.

Some lenders do make claims of guaranteed personal loan approval. What these lenders are really saying is that they will make personal loans to anyone who meets specific requirements.

These requirements are usually that the individual can demonstrate that they have the income or potential income to pay off the personal loan in a timely manner. An example of this would be a person with a steady job with a good salary.

Requirements for Guaranteed Personal Loan Approval

The main requirement for guaranteed personal loan approval is that the borrower must have a source of income or potential income that will enable them to pay off the loan.

The usual source of income accepted for guaranteed personal loan approval is a steady job with a good salary. Other sources of income can be substituted for a job in order to get approved for a personal loan. An example of an alternative source of income would be a regular government benefit or pension payment.

Some lenders will also give guaranteed personal loan approval to individuals who have enough money in their bank accounts to pay off the loan. Individuals can also guarantee personal loans by putting up collateral such as jewelry, vehicles or real estate equity.

What is needed for Guaranteed Personal Loan Approval?

To ensure guaranteed personal loan approval a borrower will usually need to present proof of income. Proof of income should take the form of pay stubs, bank statements or any other document that shows the borrower has the income.

Some lenders will also contact a borrowers’ employer to verify employment and income. Other lenders will simply want to see a copy of the borrower’s bank statement.

Online lenders will require a borrower to have a bank account so they can send them the money borrowed electronically. Many lenders will require the borrower to sign an agreement that gives them the right to take the loan repayment amount out of the borrower’s bank account when the money is available.

Guaranteed Personal Loan Approval Drawbacks

Getting guaranteed personal loan approval doesn’t mean that a person’s financial problems are over. The borrower will still have to pay the money back and pay it back fairly quickly. The borrower will have less income available for other purposes because they will have to use money to repay the loan.

Loans with guaranteed personal loan approval often come with high interest rates. Lenders charge higher interest rates on these loans because they take a greater risk by making these loans. The lenders make up for the risk by charging higher interest rates. This means loans with guaranteed personal loan approval will cost more.

Borrowers should always look for loans with the lowest interest rate possible. Having a lower interest rate possible will mean that loans with guaranteed personal loan approval will cost less.