Guaranteed personal loans are short-term loans that are normally payable on your next payday. The amount advanced is usually smaller and interest rates may be higher. The loan is also known as a payday loan, a cash advance, or a check loan. When it is an emergency and have no cash at hand to deal with it, guaranteed loans personal can be an ideal choice. Rather than borrow from friends, relatives and colleagues, which in most cases might be embarrassing, you can opt to get a payday loan. You can get it within hours of completing the application process. Other types of loans may take longer to process.
There are no limitations on how you can use the money. Whether you want some money to take you through until your next payday, want to buy something urgently, pay a bill or fix your car or a home appliance, you can get the money from an approved lender. This makes it an ideal way of accessing cash for things that cannot wait until you get your paycheck.
What are the Advantages?
Guaranteed personal loans are easily accessible and many financial institutions offer this service. You can check online for options available to you and go through what different lenders have to offer. Check the interest rates and requirements. In most cases, you can fill an application form online and have the loan approved within hours. This makes it a convenient way of getting cash because you can even do it from the comfort of your home. You can also apply for the loan any time of the day or night.
Fast approval rates are another advantage of guaranteed personal loans. Most lenders will advance you the cash within 24 hours after the loan has been approved. You also get to know instantly if they will give you the cash. In addition, some offer the services on weekends and public holidays. When you apply for a loan from a bank, it can take weeks before it is approved. This is not an ideal way of getting cash to sort out an emergency.
Additionally, no security, or collateral, is required. The requirements for this type of loan are minimal. As long as you are above 18 years, have been employed for some time and have a checking account, you can be eligible for the loan. In addition, those with a bad credit history can access the cash from some institutions. Most do not check your credit history but your current ability to repay the loan.
What are the Disadvantages?
As with any loan or financial service, there are some disadvantages of guaranteed personal loans. If you have a large amount of debt then a personal debt loan might be the smarter choice, these loans are personalized to help you pay off all of your debts in a much smaller payment. Smaller amounts advanced are one disadvantage. Because of the high risks involved, most institutions do not advance more than $ 500 to $ 1000 at a time especially to new clients. This is not an ideal way of getting cash when you want a larger amount.
Of course, with this type of loan, a higher interest rate will be charged and the repayment period is much shorter compared to a traditional bank loan. Compared to other lending institutions, guaranteed personal loans lenders charge higher interest rates. This means that you end up paying much more than you could have if you choose other institutions. In most cases, you are supposed to pay the whole amount including the interest on your next payday. Some may give you a longer period to do this but it is mostly within a few months. Having to pay all the money you owe at once may be stressful because you might have to cut on other expenses to get the cash to do so.
Furthermore, if you’re not careful in the way you handle the guaranteed personal loan, it’s definitely easier to get trapped in debt. When taking out the loan, you may not think of all the interest you will have to pay eventually. If you need help with debt advice there are many sources to check with that will guide you in the right direction. You may not also think of how you are going to raise cash to pay the loan. In some cases, you may have to take up other loans to offset it building a cycle of debt.
Finally, like any transaction done over the Internet, your personal details are at risk. Because most of the transactions are done online, you are asked to give out your personal details to a third party possibly exposing yourself to hackers. This may be uncomfortable for those who do not like divulging their personal details. One way to overcome this is to only apply for loans on websites using encryption to transfer your information.
How Do You Get a Guaranteed Personal Loan?
The process is not hard. There are many financial institutions offering the service online. You can get a personal loan with bad credit through their services, get to know what they offer, their terms and conditions. It is also important to go through their customer reviews and do a bit of a background check to find out if they are reliable, trustworthy and professional.