The idea of securing instant personal loans with bad credit is generally believed to be little more than wishful thinking. After all, lenders need to know they can trust the people they lend money to, and surely this can only be achieved by allowing them to check on the credit history of the applicant. Instant approval would not allow that to happen.

This is a worthy point, but the truth is that instant approval is possible, with many lenders offering personal loan approval with no credit checks. Of course, there are limitations to this generosity, with loans kept strictly within a low range of values. But for those in need of immediate financial assistance, they can access funds very quickly.

There is no doubt that every applicant has a chance of securing the personal loan they need. With the correct information provided, and the right criteria satisfied, applications can be given the green light.

How Instant is Possible

The idea of getting instant approval on a loan application is based on the premise that no credit check is carried out. This is a particularly attractive proposition when seeking an instant personal loan with bad credit, as the extend of the low credit scores and how they were compiled is happily avoided.

Still, it seems strange that lenders would offer approval with no credit checks and leave themselves exposed to defaulters and con-men. But, as always, the lenders are simply playing the odds. Loan limits are kept low (usually a maximum of $10,000) and the interest rates charged are higher to aid in recouping any possible losses.

And, while these conditions might not be preferable on the part of the borrowers, the fact is that the approval rate on these personal loans are statistically higher. So, it is the greater likelihood of access to much-needed funds that is the chief attraction.

Satisfying the Criteria

The criteria set out by lenders is the key to having any chance of securing any loans, never mind an instant personal loan with bad credit. For that reason, it is essential that two factors are satisfied by the applicants. The first is that calculated repayments are realistically affordable. The second is that the source of income is reliable.

The whole issue of affordability is the cornerstone of getting an approval, and is especially so when seeking approval with no credit checks. Lenders do not simply look at the size of the income being earned, but at the debt-to-income ratio, which compares the income with the existing monthly outgoings. A strict maximum of 40% of income is permitted for debt repayments.

To prove affordability, the repayments on the new personal loan cannot push the ratio figure over the 40% limit. If it does, then the application is certain to be rejected; if it does not, then approval is practically assured.

Choosing the Best Lender

Of course, not all lenders offer these kinds of deals, and even amongst those that do, terms and conditions can vary. So, it is important, when applying for an instant personal loan with bad credit to find the right lender. There are two options in this regard: firstly, in approaching a familiar lender; and secondly, in taking to the Internet to find an online lender.

For the most part, the online option is best, with online lenders famous for their lower interest rates and more flexible repayment schedules. They also often offer approval with no credit checks as standard, making them highly accessible.

Approaching familiar lenders can be worthwhile as they already know your reputation, and are more likely to approve your personal loan application. The terms, however, may not be ideal.