What Is a Guaranteed Loan?

If you are looking for instant funds, you must understand the importance of having a guarantor when applying for a loan. A guarantor guarantees that his creditor will be paid back if he pays back the loan. If you do not, he’ll pay off your debt! He can also guarantee that you will repay him a certain amount every month. This means you have peace of mind knowing someone else has been responsible for ensuring you get what you need.

A guarantor may help you improve your credit score. If they offer their services, they could benefit you in the future. They are usually provided at higher interest rates than traditional loans. When you apply for one, determine how much it will cost.

How does a Guaranteed Loan work?

Guaranteed loans allow you to borrow money without worrying about your credit history or past-due bills. These types of loans are ideal for people who don’t have good or bad credit. No credit check is involved, and the application process takes only minutes.

It works like this: You fill out an online form with basic personal data such as name, phone number, address, employment status, income, etc. The lender then runs your credit report and determines whether or not you qualify for a loan. Once approved, they send you some forms to sign and fax over. After that, you wait 48 hours before getting your cash deposited into your bank account!

You can use the money from your guaranteed loan to pay for anything, including but not limited to:

  • Household repairs
  • Utility bills (electricity, telephone, water)
  • Groceries
  • Medical expenses
  • Vehicle replacement
  • Auto insurance
  • Car payments
  • Mortgage/rental payments

Types of Guaranteed Loans

There are numerous kinds of guaranteed loans available today. They include:

  1. Home Improvement Loans – These loans allow homeowners to fix their homes by adding new appliances, windows, flooring, paint, or carpeting. Lenders often require borrowers to put down a small security deposit and agree to keep an additional monthly payment toward their total bill.
  2. Payday Loans – These loans are perfect for people who already have outstanding debts or car payments that they cannot afford to pay on time. A payday loan allows them to receive the needed cash within 24 hours after applying. Also, look out for payday loans no credit check same day.
  3. Auto Title Loans – Similar to payday loans, auto title lenders can provide customers with cash within 24 hours. However, unlike payday loans, which are based on repayment terms of two weeks, an auto title loan gives borrowers three months to repay the money.
  4. Debt Consolidation Loans – These loans combine multiple types into one package to save borrowers hundreds of dollars in interest. Typically, the borrower must obtain several smaller loans at a lower rate and make regular payments to their creditors. At the end of the term, the remaining balance is consolidated so that the
  5. Personal Lines Insurance – An insurance policy is a great investment because it protects consumers against financial loss. Some individuals do not want an insurance policy because they believe they will be paying too much for the coverage. But if you know how to shop around and compare rates, you could save thousands of dollars annually!
  6. Mortgage Refinance Loans – Are you looking to refinance your current home? It’s important to understand that mortgage refinancing is completely different than obtaining a new mortgage. With mortgage refinancing, the borrower gets access to larger funds to improve their existing home. In most cases, this means reducing the overall cost of the house.
  7. Cash Advances – Many people turn to cash advances when they run short of money for unexpected costs like medical bills. This form of financing has become increasingly popular as more options have emerged in recent years.
  8. Car Repair & Replacement Loans – If your car breaks down unexpectedly, there may be nothing worse than spending precious time and gas searching for money for repair services. Fortunately, some companies offer quick auto repair loans that can allow you to cover the repairs quickly.
  9. Commercial Real Estate Mortgages – Businesses often rely on commercial real estate mortgages to finance major purchases. For example, a business owner may use such a loan to purchase equipment and fixtures for a store.
  10. Student Loans – Are you currently pursuing higher education? Do you know what student loans are available to you? There are several student loans, including the federal government and private loans.
  11. Medical Bill Consolidation Loans – Are you struggling to pay off past-due debts? Has your medical debt grown too big to handle? Then you may want to begin looking at medical bill consolidation loans. These loans help consolidate all your medical-related debts into one manageable payment plan.

100% Approval Guaranteed Payday Loans, No Credit Check

It is possible to apply for guaranteed approvals using bad credit loans. However, certain conditions must be met before applying for these bad credit loans. The following are some of them:

  1. You need to have a stable source of income. Generally, applicants with steady jobs are given better chances of getting approved by direct lenders.
  2. You should have a reliable employment history. To be eligible for guaranteed approvals, you should have been employed consistently for at least two years before applying for a secured loan. 
  3. You cannot owe any other type of loan. Most of the guaranteed approval loans come with terms and conditions. The interest rate charged on every secured approval loan depends upon the lender and duration.

How to Use Guaranteed Loan Approval No Credit Check?

Guaranteed loans have been around since the early 1980s. They were introduced as an alternative to traditional bank loans. Today, many customers prefer guaranteed approval loans because they do not require collateral or verification of their details.

If you are dealing with financial troubles and find it hard to get funding, then guaranteed approvals could be just what you need. But first, you need to learn how to get the best offers.

To qualify for guaranteed approval loans, you must meet the minimum criteria mentioned below:

  1. Having a stable source of income

A good way to ensure you will always receive payments is to start working immediately. If you wait until you are in a position where you can only afford periodic payments, then you will never be able to take advantage of this option.

You should start saving money from day one instead of spending it on things you don’t need. This practice will soon enable you to build up enough savings to make regular payments without borrowing money from another person.

  1. Being honest about your situation

You should not try to hide anything when you work out if you can afford a specific loan. This includes any previous credit problems or bankruptcy proceedings. When lenders ask questions, you should answer honestly to avoid rejection later.

Do not lie about any of your information if you want to obtain guaranteed approval loans. In turn, you might end up becoming ineligible for future loans.

  1. Having a positive payment record

Before taking a loan, ensure you pay back all the installments on time. It would be better if you set aside a separate part of your monthly budget for repaying your debts.

Never let your debt pile up, and allow yourself to become overburdened with loans. This may affect your ability to keep paying back your obligations. So, it would help if you found ways to reduce expenses and make extra cash to cover your loan repayment costs.

  1. Being prepared for sudden changes

Most guaranteed approval loans carry terms and conditions attached to them. These include fees associated with borrowing the funds. Some of these fees may vary depending on whether you pay off the loan after a certain period or use it to build up more debt.

The interest rates charged by lenders also change based on factors such as the volume of transactions and the borrower’s credit score. If you think your financial status is likely to change soon, you should look at getting a fixed-rate loan instead.

  1. Not being under any legal obligation.

Many think that if they have signed a promissory note, they are legally bound to repay the full amount agreed upon by both parties. However, it does not mean that you are obligated to do so. You might still decide to break your promise if you feel like it.

Most guaranteed loan providers know this fact. Therefore, they will insist that applicants sign a contract before providing them with financing options. This document ensures that you understand your rights and responsibilities when using the service provided by the lender.

  1. Repaying within the stipulated timeframe

Repayment of guaranteed approval loans usually takes between two months to six months. The sooner you begin making payments, the faster you will be able to clear your debt because your balance gets reduced each month.

This means that the longer you delay starting to repay your loans, the bigger the penalty will be. With guaranteed installment loans, you are expected to keep your payments coming even after reaching your maximum limit.

  1. Obtaining a reliable source of income

As discussed earlier, guaranteed approval loans require applicants to provide their employers with proof of their income.

If you fail to show proof, you could get into trouble. Many companies do not accept job applications with inconsistent employment records and request evidence from banks where you hold the account. Thus, ensure you have time to prepare the necessary documents.

  1. Being aware of the risks involved

As mentioned above, guaranteed approval loans come with high risk. Most people who borrow money from commercial institutions like banks realize this very well.

However, some individuals take advantage of their situation without understanding the consequences. They end up losing substantial amounts due to bad decisions and bad choices.

  1. Choosing the right option

Finally, you need to determine what kind of guarantee you want to rely on. Do you want to borrow money against your current assets or your future earnings potential? It all depends on your circumstances.

If your main priority is to avoid repossession of your property or other collateral, then you should opt for secured loans. On the other hand, if you wish to improve your credit rating or reduce your monthly installments, then unsecured loans are the best bet for you.

How to Improve Your Odds of Getting a Bad Credit Loan?

With these tips in mind, you can improve your chances of obtaining guaranteed approval loans. Remember that there are no guarantees in life, so you must be prepared for unexpected situations.

Algernon Ronson
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