When you hear about risky loans, what comes to your mind? First, of course, the obvious thing is that you will think of a loan that it’s more likely to default.
I know that things are tough, pushing people towards taking out risky loans, regardless of the consequences. But that should never worry you because you may still manage to get through the loans. However, I trust that everything will be well soon enough.
This post will show you more about high-risk loans and where you can get direct lenders with guaranteed approval.
What Are High-risk Loans?
If a loan is of high risk, the probability of late repayment or defaulting is very high. In most cases, people with bad credit history tend to fall victims to these high-risk loans.
For instance, let’s talk about something like payday loans. Payday loans are high-risk loans that the chances of default are very high. What results in bankruptcy is the high-interest rates associated with them. However, you will always get people borrowing the loans.
What are The Characteristics of High-risk Loans?
In most instances, high-risk loans are usually unsecured loans. Therefore, you don’t have to provide collateral to get a high-risk loan.
The lenders are the ones who risk lending to people with lower scores. Therefore, money is always on the verge of getting lost, but they do the business anyway.
Since the loans are at high risk, the interest rates are usually high. For instance, a typical payday loan could cost you a minimum of 391% APR. However, some other high-risk loans exceed 20% APR, more than the standard APR.
High-risk loans are usually short-term in nature. However, in most cases, lenders who lend high-risk loans do not trust the borrowers to stay with their money for more than two years.
You can get a high-risk loan via online platforms and websites. Nowadays, due to the growth of Fintech, borrowing is taking another shape. As a result, you find that it’s possible to access cash in the comfort of your home.
High-risk loans usually come in small amounts. Since the lenders are risking their money, they will not give too high loan limits to the borrowers.
The high-risk loan lenders do not bother with credit scores. If you have a steady income, you can access a high-risk loan. The lenders do not run credit checks to the borrowers as long as they can afford to repay.
How do lenders consider you as a high-risk client?
- It’s not always a borrower’s fault to be a high-risk client, but it happens anyway. So how do lenders detect you?
- For instance, once you have a high credit utilization ratio, lenders may consider high-risk clients if you spend 90% of your credit limit.
- In addition, if you have a late repayment history of loans, then lenders can consider you as high risk.
- Or maybe you don’t have a credit history at all; lenders may not trust you either.
Now that you understand high-risk loans, where can you get such loans?
Where To Get High-risk Loans With Direct Lenders and Guaranteed Approval
I know that even if these are high-risk loans, you still need them to survive till your next paycheck or income. So you may be wondering where to get direct lenders of high-risk loans. Now, worry no more; I got your back on that.
The wise loan is a lender that gives out high-risk loans ranging from $200 to $1500 if you are a new customer. However, if you keep coming back, you can access up to $3500.
The APR of this lender ranges from 299.96% to 799%. In addition, you will be making 2 to 11 bi-weekly payments once they approve your loan.
There is guaranteed approval on Wise loans since you can still get a loan with bad credit of less than 600.
Quid Market Loans
Quid Market is a direct lender to get high-risk loans of up to $1500. The maximum time you can take to repay such a loan is six months, with a maximum APR of 1625.5%.
However, if you are a frequent client, you may get better deals. In addition, if you apply for a loan here, the lender will transfer it to your account within 24 hours.
Swift Money is a direct lender that gives out high-risk loans. With this lender, you can access a high-risk loan starting from $100 to $3500.
In addition, the loan term here doesn’t exceed 12 months, and the APR ranges from 292.25% to 815.74%.
As you have seen, high-risk loans have a common characteristic of high-interest rates and short-term in nature. Therefore, if you have to take these loans, ensure that you pay them fast and return to them again. Instead, focus on creating more income sources, which will eventually help you