When you have a bad credit at all, chances are you’ll have a hard time getting approved. In instances like these, you may need a guarantor get your loan approved. A guarantor basically agrees to pay the payday loan or a part of it, should the borrower be unable to make the payment.
Types of Guarantees You Need to Know
This type of guarantee is generally the common go-to for new home buyers who have a good credit but no deposit. The guarantors will use their own property that they already own to secure the guaranteed loan.
Income and Security Guarantee
In this type of guarantee, a borrower may also rely on his or her guarantor’s income to prove that they can pay for the online loan. This is in addition to a real estate property that the guarantor owns already in order to secure the loan.
When a guarantee is limited, it means the guarantor only agrees to paying for a limited portion of the total cash loan amount.
Who Can You Get as a Guarantor?
Financial institutions like banks have different requirements for guarantors. However, here is a general gist.
A guarantor needs a stable source of income. To prove that a guarantor can pay for the loan, a guarantor, just like usual borrowers, have to present proof that they can afford to pay the home loan.
A guarantor has to prove his or her creditworthiness by having an excellent credit.
A guarantor must have equity in their real estate properties.
What makes guarantor loans a good option?
Usually, there are no prepayment clauses when it comes to guarantor loans. That said, loans like these can be paid off early.
Even those with poor or bad credit can avail of this option, provided that they have a guarantor.
You may get more access to loans that may have better terms and conditions.
Any lender that promises a 100% guaranteed loan is more likely to be a scam because, in reality, no loan provider would offer a guarantee. Meanwhile, there are reputable lending facilities who may still use “guaranteed loans” on their ads to attract customers; however, it doesn’t mean that they will not look for any eligibility criteria to be approved.
Basically, when a lender says it’s a “guaranteed” loan, it means that they are offering more flexible lending requirements compared to banks and traditional lending facilities. This doesn’t mean that your loan application will be approved automatically rather, you may still have the loan you need even with a bad credit remark.
Guaranteed loans often focus on your ability to settle the loan rather than your credit history, therefore you should be able to provide proof of income, such as a pay stub.
Where To Get Co-Signer Loans?
When looking for an “almost” guaranteed loans, the best place to start is online. While there are private lenders who offer payday loans, online loan providers are more flexible when it comes to their criteria and terms.
You can shop around and compare a number of loan providers first before submitting your application. This means checking their rates, terms, policies, and the reviews they have from their previous clients. This may take a little time but at least, it will help you find the best possible loan offer.
Once you found the right payday loan provider, you can start filling out the online application found on their website. Remember, a guaranteed loan may still look for specific criteria so make sure that you will meet each of this before you apply to avoid rejection or other problems.
After submitting your form, the lender will review the details you’ve provided and inform you about their decision. Normally, it will take 24 hours or less to do this, and if your loan application is approved, the money for your guaranteed payday loan will be deposited to your bank account in the soonest possible time.
How Long for a Co-Signer Loan to Come Through
Can’t wait for your loan to come because you badly need it? We all know that there are different types of loan we can choose from and every lender has its own way to release your loan.
If you apply for a loan online then you can get your funds easily. It will only take minutes, within the day, or it depends on the lender. But for some lenders that offer traditional loan it could take 7 days including the approval, the process of your loan, and the funding or it may take longer. So if you need an funds immediately, you should seek for lenders who can release funds easily and you can find most of them through online. Sometimes lenders take some time to evaluate your loan application especially if it will be your first time to get a loan. They have to background check the borrower and evaluate your credit report. Sometimes it depends on your loan amount, banks and other financial institutions study your capability if you can repay the loan in time or you’ll have difficulties on keeping up your payments. Most likely, it will take longer too because they have to make some ways for funding in order to grant you the loan amount you need.
If you’re having trouble with your loan approval then there are ways where you can get your lender’s trust and might get higher chances of approval and releasing of your funds. If you have assets that will match to the amount of your loan or higher than the amount of your loan, then you could offer it as a collateral. In this way, lenders might approve your loan easily and release your funds earlier than you’ll expect.
There are minimum and maximum days for your loan to come through. So for you to be sure that you’ll get it on time, you have to prepare your requirements and evaluate your credit score. Make sure that you limit your loan applications in order for you to get approved easily and get your funds in time.