Is there such a thing as a guaranteed personal loan? Well, sort of. First of all, there is no guarantee of you receiving any loan apart from the official approval of the lender. Second of all, the type of loan being offered may not meet your needs. Let's take a look at guaranteed personal loans and how you can apply for one today.
Words matter. They really do. The term ?guaranteed personal loan? is used to describe different lending vehicles, but for the sake of ease it generally covers the following names:
Payday loan
Cash advance loan
Cash flow loan
No credit check loan
In other words, these types of loans are short term loans charging a very high interest rate, rates that are well above what you could expect to pay even with the worst credit card plan.
For instance, let's say you want to borrow $1000 until the next payday. One such lender will be happy to let you borrow the funds provided that you have a checking account and a job. By filling out an online application, approval can be given in as little as one hour and the funds deposited immediately to your checking account.
Please know this if you plan on applying for a loan:
Terms are short, usually 7 to 30 days.
You can expect to pay anywhere from $10 to $30 per $100 borrowed. This means that if you borrow that $1000 the lender may require you to payback between $1100 and $1300.
You can extend the term as many as three times, but you'll pay additional fees and interest charges for that privilege. In the worst case scenario you may end up paying back as much in interest and fees as the amount borrowed.
Some lenders will give you a break if you pay your loan back early. For example, if the loan term is for 14 days and you really own need the advance for 5 days, your lender may agree to charge you only for the 5 days borrowed. Of course, check the agreement out closely to find out what the exact terms and conditions are before you sign up.
If you default on your loan, your credit can be ruined. Then again, if your credit is already bad this may be the only type of lender who will extend funds to you!
No, a guaranteed personal loan certainly isn't for everyone. However, if you understand the terms and conditions of the loan and you have absolutely no other choice, then carefully selecting the loan that is right for you could work for your benefit.
Although the subject of an unsecured personal loan isn't all that difficult to understand, there are many misconceptions when coming to a solid understanding of it. What follows are a few facts that can trip you up when just starting out looking into getting an unsecured personal loan. Take care to avoid the following traps and misconceptions.
Misconception 1: An unsecured personal loan requires a longer application process. It is actually a fact that it is quicker to get an unsecured than a secured loan. This is because securing a note requires a lot more paperwork to determine the value of your equity. When the equity is non existant, the application process goes more quickly.
Misconception 2: An unsecured personal loan is for those with bad credit. It is true that those with bad credit don't often have necessary collateral for a loan. Even so, it is also true that people with valuable assets prefer not to risk them for a short term loan. Even wealthy people want this method of financing from time to time.
Misconception 3: An unsecured personal loan can only be taken out for smaller amounts of money. An unsecured loan can be received for varying amounts. The average amount of a loan is between $5,000 to $25,000. As you can see, this is not chump change! If you need some extra money for a short length of time, then you should explore an unsecured personal loan.
Have you met someone who has been tripped up by these misconceptions? Seeing that you have learned what to look out for, you are almost becoming an unsecured personal loan expert! The more people that know the truth about this topic the better. If you want to publish any other information or experiences you've had with an area regarding an unsecured personal loan, you can post it to the URL mentioned below. Every author welcome!
Both Adam J. Heist & Matt Cromlento are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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