Expert view by Maggie Gallagher

No one is immune to the unexpected money difficulties from time to time. We know how stressful this situation can be and create more problems for you. At Maggie Loans, we consider that a bad credit rating should not prevent you from being able to borrow, as long as the credit requested does not place you in over-indebtedness.

What personal loans are considered high-risk?

In fact, it is quite difficult to define what high-risk loans are. Mostly, high-risk borrowers are the ones with bad credit history. Bad credit history is delinquency on current loans or “abandoned” loans for which the borrower has not returned the money. A low rating shows that a person cannot cope with the debt load - he initially did not intend to return the money, or his financial situation worsened. It is unlikely that banks will agree to issue a loan to an unscrupulous borrower again. Banks do not disclose exactly how they make decisions on issuing loans. But it is known that they evaluate the credit rating, the size of the official salary and the current debt load of the borrower. The following criteria are also relevant:

•   the presence of debts, fines, open court proceedings and convictions;

•   the number of accepted and rejected requests for money;

•   package of submitted documents;

•   marital status, in particular, the presence of dependents;

•   possible risks of non-payment of the loan, for example, the advanced age of the borrower.

The most obvious factors for refusal are delays in the payment schedule, several open loans and a small salary.

Legitimate high-risk lenders

The name itself sounds rather ambiguous. All people, both borrowers and lenders, want a safe transaction for themselves without additional risks. But with bad credit clients, the outcome may not always be clear and predictable. Not all lenders want to give loans that they will never get back. Therefore, the risk in this situation relates specifically to the lenders, and not to the borrowers.

This is because personal loans usually come with huge risk and zero application fees. The level of risk is determined by the credit history of the borrower. Personal loans usually do not require a credit check or collateral. In addition, it does not matter to Maggie Loans where you are going to spend this loan. Whether it's for repairs, medical bills, studying, or just unexpected expenses, you can spend it however you like.

Our company's goal is to give you another chance in your credit history and help you cope with the difficulties that so often appear at the wrong time. We are an official direct lender, working according to the law and providing all the guarantees.

How to get guaranteed approval for a high-risk loan?

This question is one of the most frequently asked for people applying for a high-risk loan. Many organizations claim a 100 percent guarantee, but all these promises look rather vague.

We, Maggie Loans, can say that the probability of obtaining a loan is very high, but for this you need to provide a certain list of documents.

What are the requirements?

Here are the most important requirements you need to apply for a high risk personal loan:

-    valid email address and phone number;

-    a document proving that you are 18+ and a US citizen;

-    proof of income for the last 3 month;

-    current employment contract.

How to cut down on risks?

In order to reduce risks, you need to provide as much information as possible that can influence the decision on your personal loan. Carefully check all the points of the questionnaire you filled out, which can be quite a lot. It is especially important to check all personal data and card data, on which the loan itself will be credited directly. If all documents are uploaded and the conditions are met, the risks will be significantly reduced.

What are the alternatives to high-risk personal loans?

•   Title loan

Title loan is a type of loan where the client provides his vehicle as collateral. At the same time, the client can still drive this car, but if he does not repay the loan within the specified time, the car will be confiscated.

•   Payday loan

Payday loan is a short-term loan, which is usually issued for up to a month before receiving a salary. This loan is characterized by a high interest rate.

•   Installment loans

Installment loans are loans that are given for a fixed period of time and are repaid in several installments, usually at least two. The repayment period of such loans is from several months to several years.

•   Pawn Shop loans

Many pawnshops provide loans secured by property. The rates here are lower than on loans. The money is given quickly and a good credit history is not required. The amount of the loan depends entirely on the appraised value of the mortgaged property.

Important: the contract is drawn up in such a way that the pawnshop has the right to take the property for itself if the borrower does not repay the debt. Therefore, there is a risk of losing your property.

•   Cash apps

Cash apps are applications that allow people to quickly receive and send money to each other. This is one of the ways of receiving money using the P2P (peer-to-peer) method.

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