Bad credit loans guaranteed approval: Who are they for?

Category: Financial News

Jason asked us the following question:

“I’ve been out of job for six months last year at which time I defaulted on some of my credit. Now that I have a stable job, I want to fast track paying all my debts while I can. I’m thinking of getting a bad credit loan to plough it back to paying off my older debts. Is this recommended? I’m aware of the higher interest rates that I’d be paying, but for me, the faster I get rid of my debts the better.”

– Jason, 34

A simple math will help you check if bad credit loans guaranteed approval are for you. If your salary, plus any other income that you may have, can cover your original debts plus the new interest rates from bad credit loans guaranteed approval, then your idea will work. However, even if it can, using all your money to pay your loans is a bad idea.

Lifehacker offers a caveat if debt consolidation will work for you: it’s a financial instrument, which means the lender will earn from the consolidation or else it won’t offer the product. Even if it’s tempting to write off your past debts in exchange of a single loan, paying off this new loan over a longer period may cost you more than paying off for each of the old loan. Debt consolidation is usually long-term because that’s where the lender gets to create a return, through low but recurring interest.

Still, paying off old loans with a new loan makes sense if you’re paying a high interest plus penalty fees in your old loans and you can’t negotiate a deal. In this case, getting rid of the old loans means avoiding further penalties that rack up your monthly payment.

However, keep in mind that you still need to live for today and the future. That means you should still be saving or investing a portion of your income on top of paying back your loans. But the picture is not that simple. talks about this age-old issue of paying debt vs. increasing savings in various scenarios when the former is preferred over the latter or vice-versa. Still, the bottom line is not to use all your money just to pay off loans.

So go back to the drawing board and list your living costs, target savings in the next few months and outstanding balances in one worksheet. Then create another worksheet this time with bad credit loans guaranteed approval added to the picture. You can clearly see if bad credit loans will meet your goal (speed up loan payments) or will it just add more costs to your monthly budget. In case you need one, here’s a good resource on how to create a simple household budget.

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When bad credit loans guaranteed approval are recommended

The proliferation of bad credit loans guaranteed approval may tempt you to get one, just like many borrowers have experienced in the UK and Canada. However, it is not for everyone and, often, it can spell disaster rather than solution to the borrower. We can think of three situations when bad credit loans guaranteed approval are ideal:

  1. For people like Jason, who will use bad credit loans guaranteed approval to shrink down their debt, not increase it.
  2. For people with steady income but who are short on cash flow, bad credit loans guaranteed approval can bridge the gap between paydays or income streams.
  3. For people who are not liquid during an emergency but they have money tucked away somewhere, bad credit loans guaranteed approval can provide a cash opportunity while they secure their real money.

Dangers of bad credit loans guaranteed approval

Don’t make the mistake of using bad credit loans guaranteed approval for non-essential items. Not even for essential items if you can delay the need. These loans are easy to get, but they command stiffer interest rates and penalties to make up for the risk. It is easy to fall into a debt trap with bad credit guaranteed approval when you are paying for older debts and a new set of debts is made.

Your loan bills can jack up exponentially, and you’re likely to end up paying for the interest alone of these guaranteed online loans but not the principal; hence, it’s a trap that pins you down in debt forever.

Be honest, too, that you’re getting bad credit loans guaranteed approval because, to begin with, you are short on cash. Make sure to use this loan only when it puts your finances in a better light. For example, the loan can help you buy more supplies for a new client, in turn, giving you more profits. Another case can be the loan helps you to perform work while waiting for the next salary, when you can pay off the borrowed money. Getting this cash may be easy as stated in the latest Alabama news about guaranteed loans pointing out the use of search technologies that allow for faster loan searches. However, paying it off may not as easy as with your older debts.

Here’s a good way to avoid wasting bad credit loans guaranteed approval: do a bank-to-bank transfer when paying the bills instead of withdrawing the cash; you’re likely not to spend the cash for some extra items like that chocolate bar. Yes, it’s a seemingly trivial matter, but debts are often a result of small expenses that stack up until they become unmanageable. One small purchase can lead to more small purchases until your principal payment is used up so you roll over the debt.

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Tips to pay off debt

A 2014 analysis reveals that the average household in the U.S. owes more than $15,000 in credit card debt. If you are swimming in debt, do not be hassled. Try to implement these strategies to pay off what you owe, and start saving for the rainy day.


Bad credit loans guaranteed approval are meant to make life easier, not harder, for you. The rule of thumb is simple: will it increase your ability to pay up or diminish your finances altogether? Answer that question ten times before you get bad credit loans. And if you’re planning to use bad credit loans guaranteed approval to pay back loans, remember it’s only one of the many ways to do this, as a article pointed out.

By Louie Andre

B2B & SaaS market analyst and senior writer for FinancesOnline. He is most interested in project management solutions, believing all businesses are a work in progress. No stranger to small business hiccups and drama, having been involved in a few internet startups. Prior to his for-profit ventures, he has had managed corporate communications for a Kansas City-based Children International unit.

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