Some 79 million Americans are faced with medical bills and debts that they can’t cover or pay for, according to the Commonwealth Fund. That’s nearly half of all working adults in the US. It’s a lot of people, and I’m one of them. Just as they say in life, “there are no guarantees”, I hate to break it to you, but that also applies for lending. There are no such thing as “guaranteed loans”. On the other hand, the term payday loans is substituted for the term guaranteed loans because the bar is relatively low to get this small dollar stop gap loan. Be careful though as these types of loans come with a price. Like the apple in the Garden of Eden.
It’s not always easy to determine the loan that will best meet my needs, particularly when I need the money right now. When I’m in a pinch and I need the money in the next 24 hours, I don’t have much time to consider my options, and which solution will best meet my needs. I also know that there are a lot of lenders who are just not reputable. Just because it’s a personal or payday loan solution, though, doesn’t mean that my experience will be horrible or hard or difficult.
What I really need is a loan that will meet my needs without the hassle or headache that I’ve experienced with other loan solutions in the past. Since I don’t have the cash or the savings, I really just need a guaranteed loan.
A guaranteed loan really is common from what I’ve researched, but I’ve always thought of it like a payday loan or a title loan. That may be because those always seem like the easiest way to get money fast whenever my car breaks down or I need to go to the grocery store before payday. In reality, the loan just means that there’s not much risk for the lender because I’ve got something backing me up. It’s guaranteed to be paid. So, there are several different types of guaranteed loans.
Here are just a few examples of bad credit or low income loans that I can get on short notice:
Fast cash loans online are often the first option to look at because they’re easy to find. I can get a cash loan in a few hours. All I have to do is fill out the paperwork. These loans typically don’t ask about my credit score or credit history, but I do have to fill out my contact and employment details, so they can tell me how much they can loan me as well as what the interest rate will be.
From my experience, it’s been pretty easy to get one of these loans. And, the amount I can borrow can be fairly large, depending on my current situation. It’s typically more a matter of determining how much I want to borrow, based on what I know I will be able to pay back in the time frame that’s allotted. The turnaround time has been quick too. In most cases, I get a notification in 24 hours one way or the other. Any delays I’ve seen usually involve the lender verifying my information so that they have all the details they need to move forward.
A short-term cash advance is another great loan option, particularly if you have bad credit. These solutions are typically for a low, fixed amount. That means that they’re fast-and-easy to sign up for, and I get an answer quickly as well. They don’t usually require credit checks or evidence of a pay stub, but the amount can be low. I’ve found these loans to be useful when I need money fast and I don’t have time to wait for them to process all my credit information. They’re designed to just be that: small cash loans.
The terms are usually around one-to-two weeks for repayment, so (again) it really has to be for a specific short-term money problem. It also means that I have to make sure that I have the money ready to pay it right away. I don’t want to chance those penalties, interest and other fees for missing the repayment date.
Fast payday loans online are another type of guaranteed loan. As long as I’m certain that my paycheck will be issued on time without any issue, this loan type can be a good option for short-term money problems. If there’s any chance that the check will be delayed or that there will be any other issues with the payment, it can be a pretty spendy and expensive way to borrow a few bucks.
Like fast cash loans, it’s still pretty fast, with the check typically being issued in 24 hours or less. The terms of payment are linked to my job’s pay cycle, so it’s a very quick payback requirement. I borrow the amount I need ($250, for example), and then I pay that amount back plus the fee that they charged me to borrow the money. In those instances where I need money fast, but can pay it back on my next payday, these loans really do work well for my needs.
Those credit union loans are another option when I need money for unexpected expenses or just to cover bills. They do consider my credit score, but that’s not the only factor that they look at when they determine the amount of the loan and the terms of repayment. Also, they look at my payment history and outstanding lines of credit (overall credit use). They, then, analyze my credit situation before they offer me a loan type and interest rate. They work with me to determine the solution for my needs both from the loan perspective and also on the repayment end of it.
Guaranteed loans are usually easier to get because there’s less risk for the lender. They are typically tied to a paycheck, a bank account, a car title or some other form of collateral. So, there’s the sense that it’s a “safe” investment. In other words, it’s tied to the things of value that I have available at my disposal, even though I don’t have the money right now to pay for fixing my car or buying groceries.
With my already bad credit, I just don’t have good access to financing. I don’t have the ability to use my credit card or other line of credit to finance emergencies or unexpected expenses. So, I look to personal loan options to cover flexible financing solutions or those unexpected expenses. It’s a pretty straightforward process though.
There are always risks when I borrow money. After all, I need it, so I’m willing to go the extra mile to cover my broken-down car, unexpected expenses, bills, or grocery list. Probably the largest danger is that I would just not be able to pay the loan back at all, and I could be charged additional fees and penalties in addition to the interest rate. Of course, another consideration is that I could further damage my credit or incur other liabilities.
I don’t always realize what kind of impact my credit score, payment history, and credit usage will really be. (It’s not always as bad as I’m imagining.) So, the first step is to determine what my credit score is, and also what factors are affecting that rating. Equifax, Experian, and TransUnion are the three credit reporting agencies, so I go there.
I can access my credit score from a number of online portals and financial-planning resources. As part of my credit research, I can also determine factors that may have downgraded my credit, including how solid my payment history has been and also how much credit I’m already using. This whole process goes far beyond just checking the accuracy of those credit reports, though. I also really want to learn what actions I must take to improve my financial health in my current situation. The serious side effects of taking out a loan can mean any number of things for my personal and professional situation.
The first thing I always look at is how much I’m going to have to pay to get the money, and I have to consider whether it’s really worth it. How badly do I need the money, and will I be able to pay it back right away? Those are all really essential pieces of the puzzle. It also makes a difference in how much money I will try to borrow and the method (or type of loan) I will try to get.
The worse my credit score is, the higher the interest rate. Even if I get a good deal with the interest rates, I still owe the loan and processing fees. It all adds up, and those charges mount even faster if I don’t pay the loan back right away. I don’t want to have to still be paying back that same high-interest loan when I’m old and gray. I need to pay it back and be done with it. It is designed to be a solution when I need it.
It’s great that I have access to the money right away when I need it, but with that quick access also comes those not-so-convenient repayment terms. It’s not a secured loan, so I will have to pay it back sooner than any other loan I have out. Some loans are one-to-two weeks, and even if I do have a month (or more) to pay it back, I really want to get it paid off as quickly as possible.
While the options for personal loans may seem endless, I’m glad to know that there are options that will help me. So, why take out a guaranteed loan? The most obvious reason is because I need it, but there are a few more salient reasons. Here are some top reasons why I’ve considered (and taken out) loans in the past.
The most obvious reason to look at a guaranteed loan right away is because, well, it’s an emergency. I don’t have time to wait for a home equity loan or other line of credit. I don’t have enough time to fill out the forms required to borrow against my 401k or cash out on other funding sources. At the point where I’m here, I’m in such a rush that I just don’t have time to even dig into any of the other options. I need the money, and I need it now.
Bad credit can also be a factor. As we’ve already discussed, my financial situation is a factor in the type of loan that I will (and can) consider. It might be more psychological than actual, but it’s a factor. My bad-credit perception may have made me not attempt to access other funding options. I think they will just turn me down because they have turned me down before. But I need to really dig into the facts. I need to research my credit score, and I also need to carefully review my credit reports and history. Other financing options may be more accessible than I’d imagined. Still, at the point when I’m considering a guaranteed loan, finding a loan with bad credit situation is a factor in my decision.
Another reason to tap into guaranteed loan options is that I’ve already applied for other loans or credit options. The simple answer was “no”. I have even asked my bill collectors and the mechanic for finance options, with no success. I’ve done what I could, and I can’t think of any other option. So, a guaranteed loan is really the best and only possible option right now.
Of course, as I just mentioned… I’ve tried other options. So, if I’m still looking for more options, the money situation is just that bad. I have probably already tapped out on all the other finance and credit solutions. I’ve covered previous medical expenses and other unexpected costs with a credit card, savings, or even borrowed funds. There comes a point, though, when all my other funding options are used up or non-existent. So, then, I begin the process of searching for alternative funding sources. That guaranteed loan option is sometimes the next best step. It’s the only solution that’s left to me.
At this point, it really doesn’t matter why I need the guaranteed loan. What is important is getting the money that I need. It’s essential. Then, the next step is to evaluate my options for guaranteed loans. I need to know what options are available, the costs, and the pros-and-cons. I also need to be aware of how that guaranteed loan will affect my future financial health.
It’s difficult to take a step back and really study my situation, particularly when I’m right in the midst of an emergency (it’s too stressful). When I need money right away, I just want to drop everything. We can’t give in to panic, though. I need to take time and carefully analyze the options that are available to me. (And you do too.) Which option will be the best?
There is always a myriad of options to consider no matter what my financial history is. Some solutions will just work best for me in the short-and-long term. My goal is to use the solutions that will help me build my credit and successfully navigate the hard times until I can climb out the other side. It’s not always easy, but it’s great to know that there are loans that will allow me to survive those unexpected emergencies. I just need to review the pros and cons for each possible solution and then move forward strategically with what I need.
I get it. Everything is expensive. Eating and fixing my car sometimes even seems like a non-essential luxury. But I do have those essential requirements that I sometimes just can’t do without. I need to be able to get to work so that I won’t get fired, for example.
Of course, it’s great to know that there is a loan I can get to cover those unexpected bills. All of those expenses and bills add up, particularly with kids. But, where do I start, and how easy is it to get a loan when I need it for the amount I really can’t do without?
Then, based on my credit score, I’ve got options to find a lender
I also found additional details about finance options. It’s really not as difficult as I thought. That’s what really excites me. I want a solution that will be quick and easy. But I need a loan that will allow me to live my life and not worry so much. Is that too much to ask for?
I want to enjoy life again. It looks like a guaranteed loan finance solution can help me. For that, I will be forever thankful.
Blaine Koehn is a former small business manager, long-time educator, and seasoned consultant. He’s worked in both the public and private sectors while riding the ups-and-downs of self-employment and independent contracting for nearly two decades. His self-published resources have been utilized by thousands of educators as he’s shared his experiences and ideas in workshops across the Midwest. Blaine writes about money management and decision-making for those new to the world of finance or anyone simply sorting through their fiscal options in complicated times.
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