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Camino Financial
By: camino-financial
Read in 24 minutes

The Truth About No Credit Check Loans With Guaranteed Approvals

No credit check loans with guaranteed approvals might seem like the best option when you have faced trouble getting a loan due to bad credit history in the past. But think again, there is a lot more to these types of products than meets the eye.

You need to know what these kinds of loans mean for your finances. We go in-depth and explain all about these bad credit loans and show you a safer way to secure the funding you need for your business, even if most lenders have turned you down.

Tables of Content
1. How do loans with no credit checks work?
2. Can a lender really guarantee loan approvals?
3. Are there really “no credit check loans”?
4. Types of no credit check loans
5. Pros and cons of loans for bad credit
6. Can you actually get guaranteed loans with bad credit?
7. How to improve your chance of getting a loan if you have bad credit
8. A lending alternative that works for you
9. FAQs

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How Do Loans With No Credit Check Work?

The name “no credit check loans with guaranteed approvals” imply lenders don’t issue an inquiry to view your credit report or score as a loan requirement during the application phase, but it they could very well check your credit during the underwriting and approval phase. 

Typically, these types of loans are a risky funding alternative because lendees will most likely have to pay very high-interest rates, ranging from 60% to 150%+. This is because the lenders have to price their loans based on the risk that the customer represents to the lending company. 

Common types of no credit check loans include:

  • payday loans
  • credit card cash advances
  • car title loans
  • personal loans
  • installment loans offered by online lenders

You can apply for a no-credit loan by contacting brick and mortar and online lenders. 

The application process is quick and straightforward. Applicants can get money in minutes, hours, or even on the same day. 

Prepare to provide employment and bank information.

Lenders use this data instead of a credit report to review your income and expenses to decide which loan amounts and terms to offer. 

Can a Lender Really Give Guaranteed Loan Approval?

This is a point that you should understand right away.

No credit check loans with direct approval by the lender is a term usually considered misleading. You could even say it’s blatantly untrue.

So, if the phrase isn’t true, why do so many lenders insist on using it? 

You need to realize that direct lenders and other companies that offer these loans are trying to entice you by making promises they can’t keep.

So, when they say “loans for bad credit with guaranteed approval,it’s just a way to get you to approach them for a loan.

Remember that if a company offers credit, personal or business loans, or advances money to individuals with “no credit checks”, you must evaluate the terms and conditions very carefully so that you have a clear understanding of how much it’s going to finally cost you to get that capital once you’ve completely paid it off.

Camino Financial provides easy to access loans with reasonable interest rates based on the FICO score of the borrower. We do check business credit as well to properly price business and personal loans for our customers. We do not guarantee funding to any of our applicants, however we do work with them so that the oddds they are approved are the highest they can be.

Before approving a loan request, the lender will want to have full certainty that the borrower can repay its debt. In most instances, they must carry out credit checks before disbursing funds to gauge the risk in disbursing the loan.

Even if there are no credit checks, they will always have some eligibility criteria in place.

Is There Really Such Thing As “No Credit Check Loans”?

Loans with no credit checks and bad credit loans technically do exist, but they are risky.

Some financial institutions may offer high-priced short-term loans or cash advances without checking your credit score or looking at your credit report but will require collateral. 

This is because its necessary that they take the necessary precautions to ascertain the lender will repay the loan. 

For example, they will most likely ask about your employment history, credit repayment history, information regarding outstanding debts, and your debt to income ratio. They could also review your bank account to see how much you earn and spend. 

Are Bad Credit Online Loans High Risk?

Yes, loans with bad credit and guaranteed approval will always be a higher risk to the lender and because of this, they will price their loan accordingly.

This is because if applicants have a history of bankruptcy or late payments, lenders are not sure if applicants will be able to repay the loan. 

This, also makes these types of loans high risk for applicants as well. It’s harder for bad-credit applicants to repay them due to the high interest charged and the repayment terms that lenders put in place for these products.   

Furthermore, high-risk borrowers may continue to stack up debts because they not be properly educated in how to manage their finances and debts. 

Another thing to consider is that these lenders aren’t usually compliant when dealing with low credit or bad applicants with bad credit. This makes then be considered as “predatory lenders”.

Predatory lenders, for example may not divulge the APR, penalties, and fees for theor products and will issue loans to desperate applicants. 

Some people might not even understand how financing works or that using a car or home as collateral means the lender can possess their assets when borrowers default on the loan.

Be suspicious when lenders don’t verify your income nor ask questions about how much you owe creditors when applying for payday loans and other types of credits.

Learn how to identify online loan fraud and fraudulent lenders

How Does Your Credit Score Affect Your Interest Rate?

Most no credit check loans with guaranteed approvals by a direct lender are often expensive and could cost you more than you would think.

If you have a bad credit score or don’t have a credit history, you’ll likely have to pay a high-interest rate.

This table will give you an idea about how much extra you could pay when you take a no credit check loan.

Borrower’s FICO scoreRisk perceived by the lenderLender’s estimated APR
681 o 850Low risk6% to 25%
600 to 680Medium risk26% to 50%
599 or lessHigh risk51%+
No credit checkVery high risk150%+

A good credit score can get you an APR (interest rate inclusive of other costs) of 10%, while a no credit check loan costs 150% per year.

While these are just representative numbers, the rates charged by many direct lenders are similar. 

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Types of No Credit Check Loans

There are several different types of no credit loans:

Payday loans

A payday loan it’s a loan that you repay in less than a month. However, payday loans are usually costly. Payday loan fees are super high!

Credit card cash advance

This is like a personal loan that a credit card company issues.

They’re very similar to payday loans (some even consider them to be the same thing). The credit card company takes this bad credit loan against your credit line. They are also very expensive.

Car title loans

A car title loan or an auto title loan requires you to pledge your car as collateral. If you fail to pay, you’d be putting your vehicle at risk, though.

Online lenders

Some online lenders don’t check your credit to approve loans. But that’s a minority.

Fortunately, many do soft credit checks, which don’t hurt your score. You can hope to find some of these lenders that offer bad credit loans.

When desperation comes, online loans guaranteed approval can appear magical, so be careful of loan scams.

No credit check loans with guaranteed approvals could be a good option for people with a poor credit score but are absolutley sure they can pay the money back fast.

Why Do Guaranteed-Loan-Approvals With No-Credit-Checks Have High-Interest Rates?

There are two reasons:

  1. The first is that they know you don’t have any other option, as traditional lenders are usually unwilling to lend to people without a credit history.
  2. The second reason for the high-interest rates charged on no credit check loans is that lenders are unsure if they will get their money back.
    So, they charge more, hoping that the higher interest will help them recover the losses they incur on account of borrowers who default.

Fortunately, there is a better way to raise money for borrowers with a bad credit score or those with no history.

An alternative with competitive interest rates

At Camino Financial, we do check your credit during the underwriting process but our interest rates are very reasonable and we do not have any prepayment fees.

We offer business and personal loans to individuals with limited credit history or, depending on their situation, even if they have sub standard credit.

We offer business loans and personal loans designed to meet our clients your needs.

If you’re approved, you could receive funds in as little as two business days.

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The Pros and Cons of Loans for Bad Credit Loans With Guaranteed Approvals

We’ll help you decide whether you should opt in for one of these “no credit loans”.

Easy to get a loanYou may need to pledge collateral. For example, auto loans require you to leave your car’s title with the lender
Individuals with no credit history or bad credit scores are eligibleInterest rates can be sky-high—even as high as 664% for a “no credit check guaranteed approval” payday loan
Fast turnaround. You can get your loan approved almost immediatelyIf you can’t repay, you’ll be in a debt trap that can be impossible to escape from
Some lenders will provide you with cash on the same business dayThese loans don’t help you to build your credit score as lenders don’t report your payments to credit bureaus

Should You Get Guaranteed Loans With Bad Credit?

No, you shouldn’t! Stay away from these types of loans. Nothing can be guaranteed.

If you’ve found it challenging to raise money in the past, these loans might seem like a great option, but they are not.

Loans in this category can have astronomical interest rates. And many borrowers find it difficult to repay them.

Often, the only solution is to roll over the loan into a new loan.

But it is even more challenging to pay the new loan back as the amount payable is even larger.

What should you do if you need funds urgently and traditional lenders turn down your loan application? Fortunately, there’s a way out.

How to Improve Your Chance of Getting a Personal Loan If You Have Bad Credit

  • Only submit applications to lenders that accept applicants with bad credit. Likely, a bank loan could not give you a chance.
  • Be honest with yourself about how much money you can repay without defaulting on the loan.
  • The loan amount you apply for may be less than you want but should be realistic based on your income and expenses.
  • Get a cosigner to agree to apply for the loan. In this situation, a lender approves a loan based on both applicants’ credit histories. If the other applicant has a better credit history, you could improve your loan approval chances.
  • Work with lenders that make a soft inquiry versus a hard inquiry to avoid lowering your credit score further.

Ways to improve your credit score

  • Start reducing debt by paying off the smallest amount you owe first. Then, pay off each remaining debt one creditor at a time while continuing to pay other monthly bills on time.
  • Check your credit report and score frequently to identify any erroneous notations and have them removed from the major credit bureaus.
  • Don’t overextend your credit usage. Only use 30% of your total available credit each month. Using too much credit reduces your credit score.
  • Don’t fill out new credit applications until you have paid off old debts and pay your new debts in full each month.
  • If possible, consolidate your debts so that you make one payment to pay down debt quicker.

A Lending Alternative That Works for You

A little earlier, we mentioned Camino Financial’s Small Business Loans and Microloans.

If you have a lower credit score or limited credit history, you can still apply for a loan from Camino Financial.

We have minimum requirements, and our online application is easy and fast. You can even receive your cash in as little as 2 days!

Apply for a loan today. We have helped thousands of people build a better future for themselves.

Pros and Cons of Microloans for Small Businesses

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FAQs on No Credit Check Loans With Guaranteed Approvals

What is the easiest loan to get approved for?

Some lender requirements are more lenient than others and, therefore, easier to obtain. It’s better to get a loan with a lower interest rate and better terms than settle for a risky one.

What kind of loans can you get without a credit check?

Payday loans, credit card cash advance, car title loans, and certain online lender loans.

What’s the easiest loan to get with no credit?

An unsecured, short-term loan such as a payday loan is easy to obtain but at a high cost.

The lender approves the loan based on the applicant’s take-home pay. Applicants give the lender a postdated check for the number of their future employment earnings and receive a portion of that amount in cash.

The applicant repays the lender in one lump sum and pays a very high-interest rate.

How can I get a loan if I can’t get money?

Getting approved for a loan depends on whether you can meet a lender’s requirements and can repay the loan. Compare lender requirements to choose a lender with conditions you can meet before applying.

Where can I get a loan with no credit checks?

Car title loan lenders, companies that offer quick cash, and online lenders offer loans without checking your credit.

Keep in mind that they gain access to your bank account to make automatic withdrawals for payments, fees, and late charges, making them extremely risky.

How to get a payday loan with no credit check?

To get a payday loan with no credit check, you’ll likely need to meet some requirements, such as having a job and earning a monthly salary. You’ll also likely need to provide proof of income and identification.

Some lenders may also run a credit check to assess your borrowing history. However, some lenders offer payday loans without credit checks.

So if you need quick cash and don’t have another way, consider it one of the last options. Read the terms and conditions carefully before signing up for a loan to know what you agree to.


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