There are a lot of advertisements out there claiming “guaranteed approval” for a loan or credit card even if you have bad credit. How much truth is there to these guaranteed loans? Well, the only answer to that depends on what you are you willing to pay in interest charges to get this loan. If you are willing to pay higher fees than a traditional bank loan, there are a plentitude of guaranteed loan lenders out there. However, most likely they are not affiliated with an actual FDIC bank, but a cash advance lender. The truth is even if you have bad credit, there are lenders out there willing to lend you money – at a cost.

This can be helpful if you do have bad credit and are in need of cash fast without the long loan approval process a bank will have you go through. Typically, these cash advance lenders will not do a credit check so your credit report does not play a factor. These loans are also designed for smaller amounts of cash, not for large purchases.

Guaranteed approval for credit cards is another offer you will see. Consumers need to be careful with these offers and be sure to read all the fine print. There are many credit cards offers out there that are willing to give you credit, but with exorbitant interest amounts attached. For example, it is a lot easier to get a high interest store credit card than a low interest major credit card. But, beware if you do not pay off the amount each month, the interest rates can be as high as 25% or 30%.

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