Bad Credit Loans with Guaranteed Approval

Michael Collins
May 04, 2021

As you might have heard before, there are no guarantees in life and payday loans are no different. Even though some lenders might claim your loan approval is guaranteed, bad credit payday loans guaranteed approval do not exist. Let’s dive deeper into why these don’t exist and what your alternative options might be.  

Do Payday Loans with Guaranteed Approval Exist?

Bad credit payday loans with guaranteed approval don’t exist. While it would be nice to have a guaranteed source of income if you are in a pinch, getting your payday loan approved is no sure-thing, even if you have a good credit score. Payday loans are the closest things to guaranteed loans but there is still no promise you’ll get a loan. Every payday loan lender has some sort of minimum requirement of credit score or some other requirement that must be met for someone to qualify for their loan. While many people with bad credit can often get one of these loans, some will still get denied for a variety of reasons. 

Loans are Expensive for Lenders

First, it is expensive. Lenders simply cannot afford to approve every single loan application. Lenders only have so much money to loan out at any given moment. At any time, there can be hundreds of thousands or even millions of dollars in outstanding loans. This means that the participating lender is without that money until the borrowers pay back their loan. If lenders were to approve every single loan, most lenders would not have enough cash on hand to actually loan out the money. For this reason, lenders can’t approve every loan and must turn some borrowers away. 

Lenders Must Limit Defaults

Second, approving every loan would cause the lender to lose money. Studies find that as credit scores get lower, more and more borrowers default on their loans. Since payday loans are often borrowed by people with a bad credit score, there is a higher proportion of borrowers defaulting on their loans than loans reserved for people with good scores. If a lender makes $10 from a $100 loan and one borrower defaults on a $100 loan, the lender will need 10 loans just to break even. As you can see, lenders would want to keep defaults to a minimum and this is done by limiting the amount of loans that are given out. 

Just because guaranteed approval payday loans do not exist, this does not mean there aren’t steps you can take to increase the chances your loan is approved. Let’s now take a look at the best ways to improve your chances of getting a payday loan approval. 

How to Improve Your Chances of Getting a Bad Credit Payday Loan

The main way to improve your chances of getting a bad credit payday loan revolves around improving your credit score. However, your credit score is a fairly complicated thing that has many moving parts to it. Let’s dive into some of the ways to boost your credit score so you can better understand what needs to be done to get your loan approved!

Make Payments on Time

Your credit score is made up of a few factors. The most important factor is your monthly payment history. This makes up 35% of your entire credit score. This means that if you can improve your payment history your credit score is bound to increase. 

The best way to improve your payment history is to, well, have a history of making payments! While this is not something that can boost your credit score 100 points overnight, it is overall the best way to build your credit score over time. 

Any time you make a payment, your lender will likely report your payment to a credit bureau. When they do, the bureaus acknowledge you made a payment and add it to your payment history. Slowly but surely, your credit score will start to increase as a result. 

On the other hand, if you miss a payment by 29 days or more your lender will also report this to the credit bureaus. This on the other hand will hurt your credit score. Depending on how late your payment is, your credit score can drop as much as 100 points! Missing one payment hurts more than making one payment, so a big part of building your payment history is having as few missed payments as possible! 

Do whatever you can to make every monthly payment. Using budgeting apps is a great way to make sure you have enough money at the end of every month to make your payments. If you aren’t likely to make your payment, ask your lender for an extended payment plan to give you some help. Whatever you need to do, try to make your payments on time and in full as it will start to increase your score if you do!

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Pay Off Outstanding Debts

While debt is a widely used and often necessary part of our personal finances, lenders don’t exactly like to see you have it. Think about it; if you are applying to get a new credit card or a new personal loan and you already owe $1,000 to a different lender, will your new lender be too happy? The obvious answer is no they will not. If you already have outstanding debt, your new potential lender will be less convinced that you will be focused on paying off their loan when you already have balances that need to be paid. 

The obvious way to remedy this is to pay off your current outstanding debts. While this may sound easier said than done, it is worth your effort and your hard work to do this. Try to focus on the accounts with smaller balances. If you can pay off four accounts with $250 balances, it can look better than paying off one account with a $1,000 balance. 

It is very important to know that once you pay off these outstanding debts you should not immediately close the accounts. For whatever reason, this actually hurts your credit score in the short run. If you’re planning on taking out debt in the foreseeable future, do not close these accounts. Only close them once you are certain you won’t be applying for a credit card or loan relatively soon. Otherwise, it can hurt you!

Maintain Your Credit Utilization Ratio 

The phrase “maintaining your credit utilization ratio” sounds like an instruction for a robot. In reality, it’s not too complicated to understand. Your credit utilization is how much of your credit limit you use every month. If your credit limit on a credit card is $1,000 and you use $800, your credit utilization ratio is 80%.

Lenders want to see your credit utilization ratio be 30% or lower. If it is consistently this low, your credit score will increase as a result. If spending this little of your credit limit does not seem realistic to you, ask your lender if you can increase your credit limit, If you successfully increase your credit limit, you can spend the same amount of money as past months and your credit utilization ratio will decrease.

Dispute Errors

No one is perfect, not even your direct lender or a credit bureau. Both your lenders and the credit bureaus deal with a huge amount of clients and there are bound to be mistakes made somewhere. Chances are there may be a mistake made somewhere on your credit report. For example, your credit report may be showing a payment is delinquent even though you have already paid it off. 

Mistakes like this can be hurting your credit score without even noticing. To fix this, first, check your credit report to see if there are mistakes. If there are, call your lender or the credit bureaus to fix them. If the mistakes are fixed, you could see your credit score increase right away!

Add Rent and Utility Accounts 

Did you know that lenders aren’t required to report to the credit bureaus? Even though they often do, there is no law requiring that they report your payments. Landlords and utility companies fall in the same boat. Unlike lenders though, landlords and utility companies don’t usually report your payments to the credit bureaus. 

If you consistently make your rent and utility payments on time, you can contact your landlord and utility provider to begin reporting your payments to the credit bureaus. While they are not obligated to if you ask kindly they may be willing to. If they agree to report your payment, your successful payments will build your credit score just like making a loan or credit card payment does. 

Become an Authorized User

An authorized user is something that is fairly common with credit cards. An authorized user is essentially someone that is allowed to spend the funds on an account without being required to pay it back. As payments are successfully made on the card though, the authorized user reaps the benefits to their credit score just like the person who owns the bank account. 

Ask your friends or family members to become an authorized user on an account. You do not need to spend the cash or pay it back; as long as the main user is making payments on time and in full your credit score will increase. Note that if you are taken off as an authorized user or the account closes, the effects of the account will disappear and your score can drop. 

Pros and Cons of Bad Credit Loans

You now know that bad credit payday loans guaranteed approval don’t exist, but that there are steps you can take to increase your chances for instant approval. But should you even get one in the first place? Let’s look at some pros and cons of a bad credit loan so you can decide if you should get one or not. 


  • Easier to get: Bad credit payday loans have some of the most lax requirements for borrowers. If you are 18, have proper identification, and have a source of income, there is a fair chance you  will get approved as long as your credit score isn’t horrible. 
  • Get your money fast: Payday lenders can often get you your money faster than any other lenders. Once approved, you can get your money within the day or in a few hours, depending on your direct lender.


  • Expensive: Payday loans have some of the highest APRs for any loans. While your loan amounts will be small, the interest rate and origination fee you have to pay will be relatively huge. 
  • Hard to pay off: Payday loans and the interest rate associated with them often have to be paid back in a week or two. Considering they are so expensive, it can be difficult to turn right around and pay the loan back in full. This is the reason so many people default on these loans. 
  • Likely won’t build credit: Even if you do successfully pay back your loan, the payday lender likely won’t report your payments. If you had a bad credit score to begin with, this does not do any favors and instead keeps you having a bad credit score. 

Best Loan for Bad Credit: Possible Finance

If you have bad credit and are looking for a loan, Possible Finance is here for you. We offer loans of up to $500. When applying for our loan, we do not check your credit score. Whatever your credit score, there is still a chance you can get our loan offer. 

Our loans are credit builder loans. Unlike payday loan lenders, we report your payments to Experian and TransUnion. As you pay back our loan, your payment history is built which translates to your score increasing. 

Truly, we want to build value for our customers. Payday loan lenders seek to keep you in debt and financially ruin you. We want to be a rescue ship in a sea full of sharks. We want to provide you with the necessary funding while improving your credit score so that one day you can graduate out of needing debt like our loans.

Want a loan with Possible Finance? Download our app today and get started. 

Michael Collins

Michael has a passion for writing and brought that passion to Possible. He enjoys reading everything there is to know about film, sports, and finance. His studies in college have allowed him to be on the forefront of business knowledge so he can better inform his readers.

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