Everyone face shortage of money in their life. It may take place in business or for household purposes. In most of the cases, it happens due to some unexpected events. It may be some medical or educational issue, does not matter, all need is instant help.
In this situation, instant money arranging methods like loans may be the superior selection. You can take assistance with a guaranteed loan. You want to know more about it, RIGHT?
Let’s understand the guaranteed loans first.
What are the guaranteed loans?
These are the loans that you can get if you can provide the guarantor. It has several benefits that we have mentioned later. It is divided into two parts:
Guaranteed short term and guaranteed long term loans.
Let’s have a look at the requirements
- Guaranteed short term loans: You do not need to present any collateral with instant approval and without any paperwork. And the best part is that you can utilise it to meet the short term financial needs. But at the same time, it has a negative part too, that is not good for long term goal.
- Guaranteed long term loans: It is the solution of the above problem, but approval may take time (up to 24 hours) and people with bad credit can apply too.
These are the two types of guaranteed loans. Now, it depends on the situation in which one would be favourable to you.
Now, let’s have a look at the benefits
Benefits of guaranteed loans
- You can borrow a large amount
- Get approval fast
- Interest rate is competitive or affordable
You can see that what is guaranteed loans AND how you can get the credits with a guarantor and how can you utilise it. But the question arises to whom you can get these loans?
There are two types of loans provider one is traditional, and the second one is online lenders. However, approaching traditional may consume time because of the rigid protocol. But in case of online lenders who have flexible terms that make the approval process easy. So, approaching online lenders may be the good one because of quick approval.
Now, online lenders offer loans without guarantor for those who are not able to arrange the guarantor. It has advantages too, read further to know more about it.
What are loans without a guarantor?
These are the loans where the guarantor is not required to get the funds. Though, the lender may check other things before giving the funds. We have mentioned them below:
Credit score: You do not have to worry if you have a good credit history. But in case of poor credit score, the lender may charge you a slight high-interest rate.
Financial condition: If you are suffering from terrible financial loss, then you may face difficulties to get the approval. Or you can get if your credit history is good.
Monthly income: If you have a good income source, then the lender will provide you with instant funds. Nevertheless, in many situations like sudden job loss, you can use your part-time income too.
Benefits of getting the loans without guarantor
There are several advantages that you can get with loans without guarantor.
- Chance to improve credit score
- Instant approval
- Can use the borrowed money for various purposes
The only thing that makes the difference between loans without guarantor and guaranteed loans is “AMOUNT”. In case of without guarantor getting large amount is not possible. You can get money for a short period.
Now, you can see both loans have their significance. But you must have noticed that guaranteed loans are far better option because it is available for both the short and for long term goals.