Guaranteed high risk loans taken based on a high interest rate, and for personal reasons, can be applied for at your local banking institution, or if that is not an option, you can apply here online.
Keep in mind that online lending can be precarious at best if you consider there allot of online lenders that claim to guarantee financing to people who are considered to be “so-called” high risk borrowers. There is a risk factor here that is more for the borrower than the lender – we’re talking about predatory lenders that charge huge late payment fees and extremely high interest rates throughout the entire term of their loans. It goes without saying, you need to avoid these lenders all together.
In this piece we will place three different examples of guaranteed high risk loans that have been approved by three different online lenders. All of these lenders have been featured on Financing-USA.com at one point of time or another.
1. Guaranteed High Risk Loan at 13% APR over 5 Years for $5000
This is a typical high risk loan for $500. The borrow had a FICO of under 600. Being a 5 year lending term the borrower was lucky to even get an interest rate as low as 13 percent over the principal.
For this calculation we’ll use our loan calculator found on the right hand side of our page. We enter in the loan amount 1st, the interest 2nd, the years of the term 3rd, and the periodic payment frequency last. So this case study the numbers played out as; $5000 = Amount/Principal, 13% Interest Rate, 5 Year Term, 30 Day Period Between Payments/One Month.
These loan calculation results come out as follows,
$5,000 Personal Loan Calculation Results
Total Amount to be payed: $6651.77
Total amount of interest $1651.77
Payments: $109.34
As you can see, the payments are quite low, but if this loan was to be guaranteed there would be a very high late payment penalty on it. The lender in this case charged a hefty administration fee to approve it. Fairly standard practise when it comes to high risk borrowers.
2. Guaranteed High Risk Loan at 17% APR over 10 Years for $10,000
For this example the lender really stuck it to the borrower at 17% interest on the so-called high risk personal financing term. In this case the payment period frequency was the same as the first example – 30 days or monthly. The length of the loan is 10 years and luckily it’s not a compound interest rate.
After our calculation it looks like this;
$10,000 Personal Loan Calculation Results
Total Amount to be payed: $18,569.99
Total amount of interest $8,569.99
Payments: $152.63
In this example we see that because the borrower has such a high interest rate at 17% they end up paying for the principal almost twice. This kind of personal loan is to be avoided of course due to this amount of interest. An APR this high can cripple your average high risk borrower if they have other loan responsibilities on a monthly basis.
3. Guaranteed High Risk Loan at 21% APR over 7 Years for $20,000
The borrowers in this example may have been better off not applying for the loan in the first place. Sometimes there is no choice though if it’s emergency funding. In this case the borrower(s) likely needed a co-signer before they could get approved.
If you except the terms of this financing and you have a co-signer you will be guaranteed to get approval. You can be sure that any bank that charges these kinds of rates will be shady at best. Unfortunately some borrowers just HAVE to the get the loan approved – and approved quickly. (within a week of applying)
$20,000 Personal Loan Calculation Results
Total Amount to be payed: $62,040.28
Total amount of interest $42,040.28
Payments: $59.49
In the results of this loan calculation you can see how bad it is. With an interest rate of 21% (APR) this borrower ends up paying $42.040.28 interest against the $20,000 principal outstanding amount. This is why this kind of an interest rate is illegal in some states.
In some countries that have fairly strict lending laws, this kind of high risk interest rate is criminal.
One Loan Request
Loan Amount: $8000
When loan is required: URGENT/IMMEDIATELY
Applicant's Credit Score: 566 - IDENTITY THEFT 11/2009
Borrower's Location: NICKERSON, NEBRASKA
Applicant's Income: FT EMPLOYMENT AT A VERY LARGE CORPORATION WHERE I HAVE BEEN FOR 13 YEARS AND AM IN MIDDLE MANAGEMENT EARNING $50K GROSS ANNUALLY
Purpose of Loan:
TWO LOAN BALANCES REMAINING WITH THE CREDIT UNION THAT WAS INVOLVED IN IDENTITY THEFT /FRAUD – LOANS ARE ADMITTEDLY IN DEFAULT AS I AM SUING THE CREDIT UNION – CREDIT UNION RECEIVED SERVICE ON THE SUIT AND IS NOW THREATENING REPOSSESSION. MY ATTORNEY HAS ADVISED ME TO MOVE BOTH NOTES IMMEDIATELY, HOWEVER, DUE TO SEVERE DAMAGE TO MY CREDIT SCORE FROM IDENTITY THEFT AND FRAUD IT HAS BEEN DIFFICULT. I DID FIND A PRIVATE LENDING ORGANIZATION, PACIFIC HEIGHTS FC, WHO APPROVED THE NOTE AND TWO DAYS AGO WAS PROVIDED 860.00 SECURITY/ADVANCE PAYMENT… THEY HAVE FAILED TO RELEASE THE LOAN TO MY ACCOUNT – YESTERDAY IT WAS A BUNCH OF STALLING, THIS MORNING THEY OUTRIGHT ASKED FOR $1000 UPFRONT AS INSURANCE AND TOLD ME IT COULD BE A MONTH BEFORE I GOT MY $860 BACK AND IT HAS LEFT ME IN AN INCREDIBLE BIND. MY ONLY HOPE AT THIS POINT IS FINDING ANOTHER LENDER… FAST… SO I DON’T LOSE MY VEHICLES. I AM WILLING TO OFFER THE TITLE(S) AS COLLATERAL… WE’RE TALKING ABOUT AN SUV AND A BRANDED MOTORCYCLE WITH LOW MILEAGE… VALUE FAR EXCEEDS THE NOTE AMOUNT OF $8,000… PLEASE CONSIDER THIS NOTE, I AM MORE THAN ABLE TO MAKE THE MONTHLY PAYMENTS AND HAVE SIMPLY BEEN VERY UNFORTUNATE AS A RESULT OF ID THEFT.
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