Your guide to guaranteed loans bad credit – is it the best option for you?
The needs that require an individual get financial assistance are always increasing. The high rate of unemployment, bad credit scores and debts are making life more complicated for most individuals. As a result, many people understand the importance of requesting loans to fund their personal expenses. However, applying for a loan may not be as straightforward as it may seem. This is due to borrowers that are required to go through a number of processes and meet certain conditions for their loans to be approved. This can include paying upfront fees of having a guarantor when applying for a loan.
But if you are already in a financial crisis, paying an upfront fee may not be that helpful. This means that you need to find other loan options that you can easily qualify for. However, most states experience a shortage of loan consultants to guide people on the best loans to request for depending on their needs. There are also a few regulated companies that offer guaranteed loans bad credit to individuals. Well, even though the lending rate can be relatively high, the loans can be a relief, and especially when you are stuck in a situation that requires an emergency loan.
A guaranteed loan is a loan where a third party is involved to act as a guarantor. The third party is reliable for payment of the loan in case the borrower defaults. One of the common examples of guaranteed loans is payday loans. If you take out a payday loan, your payroll will act as the third party.
‘Breaking down’ guaranteed loans
Guaranteed loans bad credit are especially useful for individuals who may not be able to request for loans in lending institutions due to an attractive credit. Here is how a guaranteed loan works:
A direct lender will offer you a loan. You are then required to write a post-dated check to the lender, which will be cashed when the repayment date is due. Most lenders usually issue the loan for a short-term period (typically after two weeks). It is advisable that you do not sign the guaranteed loan agreement with lenders who will want to directly debit money from your bank account, and especially if the lender is not a traditional lending institution. Applying for a guaranteed personal loan online has the benefit of a faster approval rate and are very easy to access.
Many individuals are currently requesting personal loans to augment their income. The loan can be used to pay for different expenses when your budget falls. But how different are guaranteed loans compared to other loan types?
This actually depends on the financial situation you are faced with. Requesting for any type of loan is the most convenient way to provide quick access to cash. To know if a guaranteed loan is the best option for you, it is important that you go through its benefits and drawbacks before committing to the loan.
Types of guaranteed loans
Requesting for a guaranteed loan can be the best way to solve all your urgent financial problems. Having said that, here are some of the common types of guaranteed loans
- ARC is an abbreviation of America’s Recovery Capital. This is a type of loan designed to help small and medium enterprises get out of a tough financial situation. With ARC loans, individuals can borrow up to $35,000.
- ExpressAnother popular type of guaranteed loans is SBA loans. The loans are designed to offer quick funds to borrowers who need urgent financing. Borrowers can get their loan within a single business day.
- Patriot express this is also another type of SBA loan that offers to finance to people who are in the military. Individuals can use the funds to either start up or expand their business.
- 504 loansThese are long-term loans that borrowers can use for various purposes. Borrowers can either use the loan to purchase a real estate property, home renovations, buy equipment or expand their building.
Benefits of guaranteed loans
Financial emergencies can occur at a time when you least expect them. In such cases, you may end up disturbed. But this does not mean that there are no options available. Requesting for a guaranteed loan is an effective way to reduce the stress that comes with lack of finances. Here are some of the benefits of guaranteed loans;
- Easy access to fast cash One advantage of guaranteed loans bad credit is its fast approval. The lender will only require your personal information, bank account details and income history for your loan to be approved. All you have to do is complete an online application and have the money in your account within 24 hours.
- Apply for a loan with a poor credit It can be quite difficult for people to secure a loan in a financial institution if they have a bad credit history. Thanks to guaranteed loans for bad credit, you can have access to instant cash when you really need it.
- Convenient to secure borrowers also have the option of requesting for the loan online. This makes the application much easier since you do not need to travel to a physical location for the funds to be approved.
Important considerations when taking out a guaranteed loan
Getting your loan approved with poor credit also comes with its own consequences. First, lenders offering guaranteed loans will incur high-interest rate and fees to such borrowers. Giving out personal information online can also be risky. However, online lenders currently use encrypted technology that secures the information received from loan applicants. Since the loans have a faster approval rate, borrowers may be tempted to borrow more. This can eventually lead them to a debt cycle. To avoid such situations, borrowers are advised only to borrow what they can afford to pay. Lenders also have different loan terms and conditions. It is therefore important that you research different lenders before coming up with one with the most convenient rates.
By applying for guaranteed loans online, borrowers will benefit from a faster approval rate. This can especially be helpful if you have an emergency situation at hand. Another advantage of the loan is that borrowers with poor credit score are also eligible to apply. However, it is important to first weigh your options before determining if the loan would be the best option for you. If you are currently experiencing a tough financial situation that requires funding, don’t hesitate. Start filling up a guaranteed loan request application form and get your financial mishaps covered within minutes!