What is the Easiest Loan to Get Approved for?

Understanding Easy Loan Approval

If your credit score is poor and you need emergency funding, you might be wondering what the easiest loan is to get approved for. Borrowers with bad credit are often catered to by lenders who can offer easy loans. Easy loan approval is tied to less stringent credit requirements during applications, and some lenders even forgo credit checks entirely to provide subprime borrowers with fast access to cash during tough financial situations.

On the one hand, a more flexible approval process makes it easier to get fast cash, but on the other hand, some loans that are easy to get approved for tend to come with higher fees and interest rates than traditional bank loans. There are many different types of bad credit loans to explore, and understanding your options before you sign on the dotted line is crucial if your goal is to make the most informed decision possible as a consumer.

Factors that Affect Loan Approval

Generally, when applying for a loan, some of the primary factors that a lender will consider to determine your eligibility include:

Your Ability to Repay the Loan

Lenders and financial institutions typically need to see proof of income to determine whether you have the ability to pay your loan back. If your goal is to borrow a significant amount of money and your loan payments are estimated to be around $3,000, a lender will likely not be comfortable with granting you loan approval if your monthly income is only $3,500. You stand a better chance of receiving loan approval if your estimated payments make up a smaller percentage of what you earn.

Debt-to-Income Ratio (DTI)

On top of reviewing your income, most lenders will consider your DTI during a loan application. This ratio helps lenders understand your current debt obligations and determine if you are capable of taking on a new one.

Credit Score and History

Your credit score and financial history are one of the most important deciding factors during a loan application because they provide an exceptional amount of insight into your borrowing behavior. Some of the elements that impact your credit score include your payment history, length of your credit history, your overall credit utilization, credit mix, and the amount of recent inquiries to your credit. Your credit score helps lenders determine your overall credit risk, which is a crucial part of your overall financial profile. The higher your credit risk, the harder it will be for you to obtain approval for traditional bank loans with stricter credit requirements.

Which Type of Loan is Usually the Easiest to Get?

Online lenders and financial institutions with storefront locations may be able to offer same-day cash and little-to-no credit score requirements, but as mentioned above, some of these loans may come at a heavy price to your wallet. Understanding the advantages and disadvantages of each loan option can help you set yourself up for success as an informed consumer.

There are two main types of loans: secured and unsecured loans. Below are some of the easiest unsecured loans to get approved for:

Payday Loans: This type of unsecured loan typically provides a qualified borrower with anywhere from $50-$500, so they are not considered to be large loans by any means. Payday loans are meant to help borrowers who need smaller amounts of fast cash and are in between paydays. In order to secure a payday loan, you may need to provide the lender with prior authorization to withdraw the amount owed from your bank account on your next payday. While payday loans tend to have lax requirements for loan approval and may not have credit checks, they are widely known for their hidden fees and high interest rates.
Buy Now, Pay Later: Using Klarna or Affirm to split a large purchase into 4 payments can be an option for some consumers. These unsecured loans tend to be easy to get approved for! Many purchases made with Klarna or Affirm come with no interest or fees as long as you keep up with your payments.
Paycheck Advance Apps: Apps like Earnin and Brigit can offer “paycheck advances” akin to payday loans and are available to many consumers with steady sources of income. These cash advances are typically up to $250, and in most cases, they are automatically withdrawn from your bank account on your next payday. While some of these apps claim to be interest-free, they do accept “tips” that open up opportunities for borrowers to access more of their paychecks. For example, when borrowing $100 through a paycheck advance app, you are prompted to tip around $11 through the app and you can request an instant transfer for a $4 fee. If you do not opt out of both options, this roughly translates to an APR of almost 500%.

With secured loans, you are required to pledge an asset as collateral in order to guarantee the funding. Some of the most popular secured options for easier approval include the following:¹

Title Loans: Borrowing against the value of your vehicle is possible through this secured loan. By using your car’s title as collateral for the loan, you can access up to $15,000 or more in some states. The amount you can personally get through a vehicle-secured loan depends on your income, state of residence, and the value of your vehicle. The more your car is worth, the more you can borrow through this type of secured loan option if you can prove that you have the means to pay it back! In order to maintain access to your vehicle throughout the repayment process, you are expected to stay on top of your payments. Title loans can be one of the easiest loans to get approved for because they are secured by collateral, so the application process can be much more flexible in comparison to traditional bank loans. Consumers with lower credit scores often turn to title loans when they need fast cash because vehicle-secured loans can cater to applicants with bad credit. Since title loans are secured loans, failure to repay the loan can result in vehicle repossession, so that is a potential disadvantage to be aware of.¹
Secured Credit Cards: A secured credit card is much easier to obtain than an unsecured credit card because you are required to place a cash deposit as collateral for your available credit line. These types of cards are perfect for individuals who are trying to build their credit, or those who have no credit history at all.
Pawnshop Loans: When you “pawn” an item to secure a loan, a pawnshop will temporarily hold that item as collateral until you are able to completely pay off the money that you borrowed. The rates and terms for pawnshop loans can vary, so there is less predictability in the repayment process. Pawnshop loans typically do not require a credit check, but you can lose your assets if you are unable to keep up with your payments. The most common items that are used to secure pawnshop loans are usually electronics, musical instruments, jewelry, and cars / motorcycles.

Ultimately, the type of loan you choose to apply for depends primarily on your circumstances and your preferences as a borrower, but making an informed decision is crucial for setting your finances up for success.

Exploring Alternatives to Easy Loans

You may have other options besides easy loans to explore, including relying on friends and family for financial assistance. Borrowing a few hundred dollars from a loved one can be feasible for some individuals, but keep in mind that involving money in a relationship can change its dynamic for the worse in certain circumstances. If you are going to rely on your loved ones for financial help, make sure to have a solid plan in place to repay them and communicate those expectations in advance.

Another option can be to find a secondary source of income. Make the most of your skills and create an Etsy store to sell the crochet patterns you designed! Or, set up an account on Fiverr and start your freelancing journey. Websites like Forbes can offer resources on choosing the right side hustle for your skillset, so you can effectively explore your opportunities to make extra cash.

Whether you wait tables on the weekends or pick up a side hustle like DoorDash in your spare time, having extra cash each month can help you build a substantial emergency fund, allowing you to be better prepared for when unexpected expenses strike.

According to recent data reported by CNBC, the average American has less than $500 in savings. Lack of adequate savings is often what leads many consumers to apply for easy loans when times get tough. Although you can’t predict emergency vet bills or other tough financial situations, you can make a solid plan for your money and establish a savings account with at least 3-6 months’ worth of income to be as financially prepared as possible.

If you don’t have any time to waste and need cash now, these options may not be the best tool in your toolkit. Finding the easiest loan to get approved for may be the best option to help you get out of a jam as soon as possible.

Improving Credit for Better Loan Options

While finding easy loans is possible, improving your credit score is your ticket to accessing better loan options in the future and working toward financial stability. Your credit score does not just impact your ability to secure a loan. A poor credit score can limit your opportunities and affect the car you drive, the apartment you live in, and in some cases, your employment.

Working your way towards an increased credit score allows you to have some financial peace of mind and secure emergency funding through prime loans when you’re hit with unexpected bills or need to finance a large purchase.

Increasing your credit score involves a combination of time, responsibility managing your credit accounts, and learning better financial habits. Take a closer look at some of the key tips for raising a credit score:

Check Your Credit Report: You can obtain a free copy of your credit report annually from any of the major credit bureaus (Experian, Equifax, and TransUnion). Make sure to consistently review your report for errors or discrepancies and dispute any inaccuracies you may find with the credit reporting agencies.
Avoid Late Payments: Since late payments can significantly impact your credit score, it is important to prioritize your debt obligations in your budget and set up automatic payments or reminders to ensure your bills are paid on time each month.
Reduce Your Credit Card Balances: Keeping your overall credit utilization under 30% is recommended by many financial experts! In some cases, you may be able to secure a balance transfer card and take advantage of a 0% introductory APR period to focus on paying off your balance.
Keep Old Credit Accounts Open: After you finish paying off one of your older credit cards, do not close the account. Instead, leave the account open to maintain a longer credit history.
Consider Debt Consolidation: If you are struggling with debt due to high interest rates and hefty credit card balances, it may be time to consider a debt consolidation loan. Consolidating your debt involves securing a single loan to pay off multiple debts, allowing you to focus on one payment and interest rate.

Tips for Finding the Best Loans With Easy Approval

Searching for easy loans can seem overwhelming, as there are many options on the market. Choosing the easiest loan to get approved for is one path to fast cash, but it is important to do your due diligence and research different lenders prior to making a decision.

Some of the factors that you should consider when choosing a lender and loan option include:

Customer Reviews: Websites like the Better Business Bureau and Trustpilot allow users to see unfiltered reviews from customers. By showcasing both negative and positive reviews, you’ll be able to gauge what your experience could be like by choosing this lender, and allow you to make an informed decision about your loan.
Interest Rate and Repayment Terms: Since different lenders tend to offer varying loan terms, comparing the interest rate and repayment terms of a loan is crucial. For example, payday loans typically have shorter repayment periods than title loans, so that’s something to keep in mind if you are stuck deciding between those options. Borrowers can access competitive interest rates and have up to 36 months to pay off their title loans if they qualify for ChoiceCash title loans serviced by LoanMart!¹
Amount You Can Receive: Another important element to consider is the amount that you can access through your desired loan option. With a pawnshop loan, you can only receive a portion of your item’s used value. Additionally, payday loans tend to be on the smaller side, often ranging between $50-$500. Choose the loan option that can best fit your financial needs!
Convenience: If you are short on time, you need a loan option that can keep up with you. Search for lenders who can offer fast approval and convenient online applications!¹

FAQs about Easy Title Loan Approval

If a title loan sounds like the right fit to handle your financial needs, complete a short pre-approval form online or call 855-422-7402 to speak directly with a ChoiceCash title loan officer. Below are some of the most commonly asked questions about vehicle title loans:

What Do I Need to Get Easy Title Loan Approval?

To obtain approval for a title loan, you will need to meet the lender’s requirements and provide sufficient documentation to verify your information. This usually includes a valid, government-issued photo ID, recent pay stubs, or another qualifying document to verify your income. Additional documents include proof of residence, a car title in your name, and a few pictures of your vehicle to complete a virtual inspection.¹

What is the Maximum Amount I Can Receive Through an Easy Title Loan with Bad Credit?

Your state of residence, income, and the value of your vehicle will impact the maximum amount you can receive upon final approval for a ChoiceCash title loan. Depending on these factors, it is possible to access up to $15,000 through a title loan – even if you have poor credit!¹

Where Can I Get Instant and Easy Title Loan Approval?

Generally, most title lenders do not offer instant loan approval because they follow specific processes to determine the eligibility of an applicant. While finding immediate approval for a title loan is not realistic, it is possible to secure funding with a bad credit score! Complete an easy and quick questionnaire online to see if you qualify for instant pre-approval today.¹