With today’s economic difficulties, loans are pretty hard to get. Banks can’t even get loans right now, and that says a lot. If banks can’t borrow money, they can’t lend money. This makes things difficult for individuals who find themselves in need of a little extra money.
Since getting a loan in today’s economy is really hard, many individuals have had to turn to guaranteed loans. Even if your circumstances are difficult, you may still be able to get a loan of this type. Chances are, you’re a great candidate for a guaranteed loan. This article will show you whether you can qualify or not.
Guaranteed loans are short term loans, where the money is usually deposited in the borrower’s account. The period of this type of loan usually ranges from one to three months. Since this type of loan is quite risky for the lender, the amount is usually capped off at $1500. For many lenders, $500 is the upper limit.
These loans are generally called guaranteed because there is usually no credit check in the approval process. As long as you meet the lender’s criteria, you will be approved even if you have the worst credit in the universe.
The first criteria that most lenders use is that you are a citizen of the United States. If you aren’t, you are too high of a risk for this type of lender. A non-citizen who defaulted on the loan would be too difficult to track down. A agency that tried to collect the debt would probably be unsuccessful.
You also need to be considered an adult in your state to qualify for a guaranteed loan. This means that depending on your state, you will have to be at least 18 years old to get a loan of this type. In some states, you may need to be as old as 21 to qualify.
Many lenders will only lend money to individuals that have an active checking account. This means that they can withdraw your repayments automatically. This lowers their risk considerably. For a persona to get away with the lender’s money, they would have to stop depositing checks in their account.
To make sure you can repay the loan, the lender will usually require that you are gainfully employed. A typical part of the application process is providing three months worth of pay stubs. If you don’t have a job, you won’t be able to qualify for a loan of this type.
Author: Dave DavisThis author has published 8 articles so far.