Securing Personal Loans With Bad Credit: Where Guaranteed Approvals are Not Impossible

The traditional idea behind securing personal loans with bad credit scores is that the lenders are reluctant to entertain the risk. A low credit score, after all, is supposed to reflect a lack of trustworthiness, while the high interest rates that come with such risk, in the end, are supposed to make the whole transaction too expensive for the borrower.It is no secret that in their efforts to get loan approval from lenders, borrowers with very low credit scores are left to search the alternative loan options. The traditional route is all but closed to them.So what are the personal loan options available to borrowers who do not want their credit scores to play a part?Choosing Online Lending FirmsThe significance of the online lending industry cannot be ignored. In many cases, the best place for those seeking personal loans, with bad credit hindering them, to find a more open-minded attitude is online. Many of the traditional lending criteria have been either negated by the online process, or have been adapted to suit consumer expectations.For example, when seeking a $5,000 loan, the traditional process of getting loan approval from lenders involved providing documentation that supported the application. The boxes needed to be ticked, and in many cases, hairline decisions were made based on the smallest details. Often, the credit score, and its effect on the interest rate charged, proved to be the difference.However, online lenders usually ignore credit scores completely, so the guarantee of approval rests on proving sufficient income. As long as this basic criteria is met, then personal loans are more likely to be approved. With online lenders, having a proven income, employment and a working bank account are key.Choosing Family for LoansAnother area where a guaranteed approval is generally expected is in family loans. This is logical as individuals who are seeking personal loans with bad credit hanging over them are likely to be more warmly received by family members. There is, after all, a tendency for family to help each other.One of the chief advantages is that, while getting loan approval from lenders like banks and credit unions are certainly only possible after close assessment, family tend to make a decision based on emotional aspects. This means that the risk factor has practically ignored, so that even the very lowest credit score has no bearing at all.The family option is also arguably the most financially beneficial to choose, with family often forgoing interest rates when agreeing personal loans, or at the very least charging a very small rate. This means that repayments are much more affordable.Choosing Student LoansQualifying for these loans rests on being registered at a college, but for so many college goers, it is a very common loan type - especially when they have bad credit histories. But because of the support for education, getting such personal loans with bad credit scores is not generally a problem.There are two types of lenders in this sector: namely, public and private lenders. Getting loan approval from lenders will always depend on the ability to make repayments but, with student loans, lenders are willing to place faith in the future ability to do so, rather than the current ability.Public lenders are federal governments, which offer loans specifically to those college goers who are likely to struggle to pay college fees. These personal loans - like the Perkins Loan and Stafford Loan - are means tested, so only those who really need financial assistance get them.Qualifying for the loan usually means guaranteed approval, but with a limited number available, applicants need to be fast.