Guaranteed Personal Loans

As you are making an application for availing a personal loan, it is already a standard procedure that lenders will have to know if you have the capability of repaying the loan in its full amount or none at all. Who doesn't want assurance from a stranger about lending their money, right?

Most of the lenders will ask for you to accomplish a set of requirements before you are cleared to have your requested loan. As you move on to accomplish the application, see to it that you are eligible for the requirements. 

If the lender tells you that you are not eligible or you find that out on your own, don't lose hope. You can have someone to stand as loan security, such as a family member or a trusted close friend. 

In getting a personal loan on your own in times of difficulty, this is where 'guaranteed personal loans' become convenient. By definition, a guaranteed personal loan is a secured loan that assures the lender that it will be paid even if you default on it for any reason. 

How Do Guaranteed Personal Loans Work?

In the instance wherein you are deemed as ineligible for a personal loan, proceed immediately in getting a guaranteed personal loan. Among the reasons for being ineligible are being too young, unstable income, and poor credit history.

As mentioned, a family member or a trusted close friend can be the guarantor that will stand as loan security. If either of them is willing, you might have a greater chance of being successful in your application. 

How does it work? That person will simply be the one responsible, on paper, for paying back the loan if you will be unable to pay it. In short, you are showing your lender that there will be someone capable to 'save' you if you cannot pay the loan anymore. Of course, there is full consent on both parties, and the guarantor is deemed eligible. 

What Are The Features Of Guaranteed Personal Loans? 

Thorough research is important as you apply for a guaranteed personal loan. You must compare the details such as interest rates, fees, penalties, and the payment duration. The larger the loan, the more risks it will be to you and the more assurance the lender needs. 

The guaranteed personal loans' main feature is that a lender has someone guaranteed to pay for the borrower's obligations. The guarantor can provide a car, jewelry, or property, assuming it is well-appraised, as collateral payment also. 

What Are The Positives And Negative Of Having Guaranteed Personal Loans? 

The obvious positive side for availing of a guaranteed personal loan is that the risk is being shared within a borrower's perspective. While you, the borrower, may have the capability of paying the loan, it still helps to know that someone capable got your back. This can be an additional motivation also that someone can bear your responsibility if ever you mess up. 

The negative side is that there can only be few occasions that you'll ever experience that. There is a possibility that you won't have someone qualified to be a guarantor at all for the rest of your life. This is due to the reality that we have our own lives and responsibilities, and it is hard to find a person with such generosity who can cover whatever amount you're borrowing. 

Another negative side is that if something happens to your guarantor, it can jeopardize your chances of finalizing your loan request. Assuming that the loan has been granted and something happens to him/her, there will be a chance that your confidence for repayment will be reduced.