4 Misconceptions on Guarantor Loans
  • Alan Jose
  • July 20, 2018

You need funds? Huge funds? Then how about availing funds. For small amount, you can go to your friends or family. But when it comes to big amount, you cannot be selfish and have to take care of their financial concerns. Borrowing funds can help in solving all your problems.

The lending market has ways to help you out in tough times. An extensive range of guarantor loans online is there to serve your financial concerns on much lower cost. Just a simple online procedure, same day decision on approval and here comes, the money in your bank account. They are devoid of documentation and this is something saves a lot of time. Who wants to get into the hustle and bustle of filing and faxing?

The next generation lending (Fin Tech) is actually making guarantor loans accessible for everyone. BUT, there are some misconceptions on these loans that may stop you from taking a confident decision. If you clear your doubts, borrowing money will be less stressful. It is always necessary to know as much as possible about the loans that you are applying for. More aware you are, better are the chances of getting the maximum benefits of borrowing.

Below are some common misconceptions and the realities behind them. Take a look –

Misconception 1 – Bad credit guarantor loans are available for the worst credit people too.

Answer – No, they are for bad credits and not for very bad credit or worst credits.

Many people today are going through tough financial times due to credit score issues. They have bad credits and whenever they go to a bank to avail funds or if they want to buy a new credit card, their poor credit performance becomes the biggest obstacle. With new age lending, you can borrow guarantor loans with bad credits but not with the very poor credits.

It is a common misconception that the loans, which are available for the bad credits, are also in access of worst credit people. But in actuality they are not. Yes, there can be some funding options for the people in such extremely bad credit situation, but they are rare.

Misconception 2 – The long tenure means loans are expensive

Answer – No, in fact they are quite affordable

The loan products that allow you borrow huge money are usually long in tenure. But this does not mean that they are expensive in terms of rate. In fact, they are quite friendly to your pocket. Reason – When you give some kind of guarantee or security, the lender has no risk on repayments. This is why you can borrow more money on lower rates. The expensive loans are those that are for short-term and unsecured or do not have a guarantor.

Misconception 3 – These loans take too much time to process

Answer – No, they are available on same day decision

It is a common perception that the loans, which allow borrowing huge funds and have guarantor obligation takes too much time to process. This is something depends on the lending method or platform you choose. Mainstream lenders may take quite a long time but the online loans are available on the same day decision. Money is also transferred on time. Today, when time is equally important as money, people are getting more inclined to online borrowing. This helps them get the funds faster and repayments are also easier. You can pay the monthly instalments online or through the direct debit.

Misconception 4 – Unemployed people cannot avail the funds

Answer– Unemployed people can also avail funds without any discrimination

It is true that banks want you have a job and they are never ready to lend you if you do not have a job. But in online loans, there is no constraint on employment status. You can apply and avail for the funds without the job. The guarantor you are providing is also a great support for you in convincing the lender, to lend you. In fact, with a good recent financial status, you can also qualify for the loans without guarantor for unemployed.

The answer to the misconceptions above will always help you have a better understanding of the loans with guarantor. This perhaps also gives you the idea of their usefulness and the financial situations they serve.

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Amount of credit €2,500 for 2 years. Interest rate: 75.3% pa (fixed). 24 scheduled monthly payments of €204.29. Total repayment of €4,902.91. Interest: €2,402.91.Representative 107.57% APR.

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