Guaranteed Personal Loans: Do They Exist?

Guaranteed personal loans sound like a sure bet, but here’s the catch: They don’t exist. You can get preapproved for a personal loan to find out what terms you might qualify for. Bad-credit loans with low or no minimum credit score requirements are also an option, but some of these loans can be predatory due to sky-high rates and fees. If they’re marketed as payday loans, that’s a red flag.

If you need a personal loan but have bad, little, or no credit, it’s possible to find reputable lenders to work with. We’ll walk you through how to find loans you’re likely to qualify for and what you can do to improve your odds of approval. 

Why aren’t there personal loans with guaranteed approval? 

Lenders can’t guarantee approval on a personal loan because every borrower is different. Certain factors might make one person a more likely candidate for a loan than another, but it’s up to the lender to decide who to approve. It does this on a case-by-case basis when someone applies for a loan. 

When approving borrowers for personal loans, many lenders consider the following: 

• Credit scores
• Income
• Debt-to-income ratio (DTI)

Of these factors, credit scores tend to carry the most weight. Lenders use them to measure risk. A higher credit score indicates lower risk and a lower score suggests higher risk. Essentially, what a lender is concerned with when someone applies for a personal loan is whether they’ll pay it back. 

The minimum credit score required for a personal loan varies by lender. Some lenders expect you to have a score of 620 or higher, but others may have no minimum credit score requirement. But just because a lender doesn’t have a credit score requirement doesn’t guarantee loan approval. 

Are there personal loans for bad credit with guaranteed approval? 

Some loan options offer approval to people with bad credit or no credit at all, but they’re not the same as traditional personal loans offered by banks or online lenders. These loans are typically short-term, may not require a credit check, and often carry much higher interest rates and fees. 

Examples include payday loans, title loans, and pawnshop loans. 

Type of loan	How it works	Approval requirements
Payday loan	Lenders advance you money against your next paycheck, and you repay it once you get paid	No collateral or credit check, but often require proof of income
Title loan	Borrow money using your car title as security and pay it back within 15 to 30 days	Vehicle acts as collateral, but a credit check and proof of income aren’t always required
Pawnshop loan	Get a loan based on the value of your collateral and repay it within 30 to 60 days	Use your personal items as collateral, and a credit check usually isn’t required

These types of loans can put quick cash in your hands regardless of credit score, but keep these drawbacks in mind: 

• Payday loans can have effective annual percentage rates in the triple-digit range, making them an expensive way to borrow. 
• Failing to repay a payday loan on time can create a cycle of debt, in which you’re constantly borrowing against your next paycheck. 
• Failing to repay a title loan or pawnshop loan can result in the loss of your collateral. 

For these reasons, we don’t recommend these borrowing options when seeking guaranteed approval loans. 

Where to find a personal loan you can qualify for 

Personal loans with guaranteed approval don’t exist, but you can prequalify for loans and compare rates from different lenders. Doing so can help you narrow down the list of loan options you might have the best chance of getting. 

Prequalification or preapproval involves sharing basic information about yourself with a lender. For example, you tell the lender how much you want to borrow, your income, and your estimated credit score range. 

Lenders use that information to generate a rate quote, which breaks down:

• How much you might be approved for
• The interest rate
• Your loan term

No hard credit check is required at this point; prequalification just lets you see what you might qualify for. You’ll need to complete a full application and agree to a hard credit pull for a lender to determine whether to approve you and at what terms. Note that hard credit checks can detract points from your credit score.

Using a loan marketplace to get rate quotes can make this process easier. These platforms allow you to compare loan options from different lenders in one place. Here are two lending marketplaces we recommend. 

Credible – Best marketplace

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LendEDU rating: 5.0 out of 5

• Wide variety of loan options
• No impact on credit scores for checking rates
• Quick online application and approval process

Credible stands out as a loan marketplace that offers a wide array of loan options from various lenders. You can compare offers before making a decision—checking rates on Credible won’t harm your credit score.

With Credible, the application and approval process is fast and online-based, making it a convenient option for those seeking rapid results.

LendingTree – Top-rated lending service

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LendEDU rating: 4.8 out of 5

• Range of lending options
• Prequalification available with multiple lenders
• User-friendly interface with educational resources

LendingTree offers diverse lending options and the ability to prequalify with multiple lenders at once. This feature allows you to save time and compare loan offers that you’re already approved for.

In addition to its versatile services, LendingTree provides an intuitive user interface and comprehensive educational resources to help you choose the right loan.

How to increase your chances of personal loan approval 

If you need a personal loan but you’re unsure of what you might qualify for, you can take the steps below to improve your approval odds before you apply. 

• Consider a cosigner or co-borrower. A cosigner applies for a personal loan alongside you and shares legal responsibility for the debt. Lenders will expect them to repay the loan if you don’t make payments. A co-borrower is equally responsible for making payments and can access the loan funds. Applying for a personal loan with a cosigner or co-borrower could make qualifying and unlocking lower rates easier if they have a solid credit history. 
• Try a secured loan. Secured personal loans may be worth considering if you have something of value to offer as collateral. A secured loan might have a lower rate because it means less risk for the lender, but you’ll need to be sure you can pay it back to avoid losing your collateral. 
• Opt for a smaller loan. It may be easier to qualify for a $500 to $5,000 loan with bad credit or no credit versus a larger loan. You can check out the lending marketplaces we mentioned earlier to find lenders that offer smaller loan amounts. 
• Choose a credit builder loan. Credit builder loans help you build credit with on-time payments and no credit checks. However, instead of getting loan funds up front, the lender holds them in a savings account. Once you pay off the “loan,” the funds are released to you. 

If you don’t need a loan right away, you could also work on improving your credit score so it’s easier to get approved later. Some of the best ways to raise a credit score include paying bills on time, reducing the amount of debt you have, and not applying for unnecessary new credit. 

FAQ 

What is the easiest loan to get approved for?

The easiest loans to get approved for can be payday loans and secured personal loans. 

Payday loans often favor accessibility over affordability, with high interest rates and expensive terms. They are often marketed to individuals with low credit scores. However, consider their costs and risks before proceeding.

What credit score will guarantee a loan?

A specific numerical credit score can’t guarantee loan approval, but a high score can improve your chances. Lenders tend to favor borrowers with scores above 700. However, they consider other factors, such as income and employment history. Even with a high credit score, loan approval isn’t guaranteed, and each lender has unique criteria.

How can you get a loan when no one will approve you?

If you’re having trouble getting approved for a loan, consider credit builder loans or secured loans, which require collateral. You may also consider finding a cosigner or co-borrower with a better credit history. Improving your credit score by paying bills on time and reducing debt can boost your approval chances.