The prevalence that the internet enjoys in modern society cannot be debated, with practically everything that we need and want available to purchase over it. Even when it comes to getting loans, online lenders are one of the most sought after sources of financing, not least for guaranteed personal loans with bad credit.

When we think about it, getting personal loans that are guaranteed against a pay check seems a strange type of transaction to take place online. Loan applications are supposed to be carefully assessed by a bank official after a brief face to face meeting to explain the purpose of the loan.

When bad credit is part of the equation, this is especially true. So, online lenders offering guaranteed loans for those with bad credit seems a major risk for them. All in all, it seems too simple and too good to be true.

Risky Business for the Lender

The reality is that while a lender might very well be accepting a risk by offering a loan over the internet, a guaranteed personal loan with bad credit is slightly less risky than it seems. This is because, as part of the agreement, the borrower must provide bank details and approve an automatic repayment of the loan sum from that account.

Guaranteed loans are otherwise known as pay day loans, which means that the loan is issued against an upcoming pay check. With that in mind, a personal loan that is guaranteed is expected to be repaid in full when the next pay check is lodged into the bank account.

For the lender then, the only risk in providing guaranteed loans for those with bad credit is that the pay check is not deposited into the account.

Risky Business for the Borrower

In fact, the borrower can actually be at a higher risk when taking out a guaranteed personal loan with bad credit. The main reason for this is that, because of the nature of the internet, there is no shortage of scam artists out there who are happy to run with your money once they have secured your bank details.

This is why it is essential every lender is properly checked out, and contacting the Better Business Bureau is the best way to do so. Lenders must be licensed so anyone offering commercial or personal loans that are guaranteed or not guarantee, and secured or unsecured, will have a track record.

Guaranteed loans for those with bad credit are serious investments too, so only lenders with affiliates and above board associations can have the credibility themselves can operate at that level.

The Advantages

However, the bright side of getting guaranteed personal loan with bad credit from online lenders is the speed with which the funds can be approved, delivered and accessed. Because most lenders offer such loans with no credit checks, significant time is saved. It means that personal loans that are guaranteed can be in your account within 24 hours.

This is very useful in financial emergencies, when low credit rating makes the task of getting funding from a regular bank a drawn out affair. It also means that guaranteed loans for those with bad credit are essentially the same as loans for those with excellent credit.

And while the interest may be high, the fact that the debt is paid immediately upon a pay check being deposited into a bank account, means the guaranteed personal loans with bad credit is not lingering for months on end.