Thinking about getting a loan, we probably think about whether we can get it from a bank or whether we should consider some other option. We are usually considered for personal loans based on our creditworthiness and how high-risk we are as a client. Banks very often follow the profile of an unreliable debtor. Nevertheless, the assessment of loan risk and the assignment of the applicant to one of the risk groups are also based on other parameters. In addition to the obvious debt and the existence of late payments, the bank will also take into account:
- profession and education;
- housing status;
- the amount of income;
- age;
- marital status;
- the number of dependents;
- number of bank accounts;
- having deposits, savings or investment programs;
- possible life insurance;
- workplace and employment history;
- owning a car and other high-value goods (this can be demonstrated by purchasing a subscription, e.g. for telecommunications services);
- credit history and service history in a specific bank institution.
Bank loan and borrower risk groups
Each institution that carries out such a selection of its clients has its own criteria for assessing and allocating clients. Rather, this information is not explicit but shows common features that are likely to be assigned to a specific risk group – thanks to the number of previously awarded for the applicant’s features listed in the previous paragraph. With the help of such a classification, four groups of customers are most often identified:
- lower risk – model client, with almost 100% certainty of receiving financing;
- medium risk – the loan is likely to be granted;
- increased risk – the loan may be granted on worse terms or require additional collateral;
- high risk – no chance of getting a loan.
High-risk clients are those who are under the so-called cut-off shore line. This line specifies the minimum number of points that must be accumulated to have a chance at all for a loan or payday loan. People under it will in no case receive a positive credit decision.
High-risk customer and non-bank personal loans
Non-bank institutions treat their clients a bit differently. It can be guessed that they rank their clients equally and assign them to credit risk groups. However, labeling someone as a high-risk customer does not always have to mean a categorical refusal to grant a personal loan from direct lenders. First, you need to be aware that the risk analysis is somewhat simplified as the loan must be granted quickly. Secondly, it is only up to the lender who will grant the loan and on what terms. So it is not said that it will not be granted to a person who has debts, appears in the debtor database, or doesn’t have a stable income. Nevertheless, it is very risky and you should always take into account your individual possibilities. To get a personal loan, you should pay attention to guaranteed approval high-risk loans.
Who can apply for a high-risk personal loan from direct lenders?
Guaranteed approval personal loans will also be available to those clients who do not receive income under an employment contract for an indefinite period. Therefore, it is possible to obtain a high risk loan by:
- clients working under a specific task contract or mandate contract,
- retirees and disability pensioners,
- people who receive regular income from other benefits,
- unemployed people.
Of course, the last option is of particular interest to a large part of customers. How is it possible that a loan company is willing to provide financing to an unemployed person?
This is where the flexible approach of non-bank entities is revealed once again. The lender may simply not be interested in the source of our income: it is enough for, for example, to present a bank account statement that confirms that our account is regularly topped up.
High-risk personal loan – requirements
To apply for an amount up to $35,000 with a repayment period 6-60 months, you need to provide:
- proof of income,
- valid ID card,
- U.S. citizenship and permanent place of residence in the U.S.,
- phone number, e-mail, and bank account number,
- age 18 and older.
How to submit an online application for high-risk personal loans
If you are interested in obtaining a personal loan guaranteed approval from direct lenders, you can quickly and conveniently submit an application in a few minutes. You can check step by step what the application for funds looks like and what information the borrower should prepare for.
- Go to the website of the direct lender and use the two sliders to select the parameters of the loan that will meet your financial needs. First, indicate the desired loan amount and then your preferred repayment date.
- The loan calculator will show the cost of the loan on the terms you choose.
- Select the “take your loan” button to go to the form. First, enter the login and password for the user account that you set up at the same time as applying for a loan. Why? After obtaining the loan, by logging into your account, you can conveniently pay off the liability, e.g. by checking, for example, how much money you still need to return.
- Complete the rest of the loan form with basic personal data, ID card number. In addition, you must also provide a mobile number.
- To complete the registration, it is necessary to make a verification transfer. The symbolic amount sent to the indicated account allows you to confirm the identity of the loan applicant, which prevents fraud and identity theft.
- After submitting the loan application for verification, you should wait for it to be processed by direct lender. If the client meets all the conditions for receiving a personal loan, he will receive an offer proposal.
- It should be remembered that an inseparable part of every loan application is checking whether the client receives regular monthly income.
- After granting the loan, funds for any purpose go to the indicated bank account number even in several minutes!
Advantages – high-risk personal loans
- Personal loans for those in debt – companies offering such products more often than other institutions turn a blind eye to unpaid liabilities.
- For people refused in other institutions – entries about an earlier refusal to grant funding do not have a negative impact on the decision.
- A chance for those entered in debtor databases – such a personal loan is the best option for people entered in debtor databases.
- The possibility of rebuilding your credit history – paying off your obligations on time allows you to increase your creditworthiness.
- High granting – a personal loan via the Internet guaranteed approval is characterized by low customer requirements.