Non-Homeowner Guarantor Loans
True to its name, a personal loan caters to different personal needs such as debt consolidation and paying for a cosmetic surgery, just to name a few. A lot of creditors don’t require security or perhaps collateral when it comes to personal loans. However, they look out for themselves against running risks through giving skyrocketing interest rates. Application for personal loans with the help of a guarantor could help you get a pretty much lower interest rates or it could up your possibilities of being qualified for a higher amount of loan.
With the entire world suffering from the pains of the recent recession, getting personal loans have become stricter for people that don’t have security or perhaps collateral. Homeowners will typically be more advantageous because they will possess a track record of complying with mortgage payments, the security their property offers against just about any type of borrowing they apply for, and typically have a good credit record as an outcome. Those who rent or live with their parents, however, could face difficulties whenever they try to get loans they need because of the lack of security or collateral on their part.
In these scenarios, a guarantor loan is really a great option. Through putting in a homeowner to an application, the applicant appears to be providing guarantee that the repayments of the loan could certainly be made. Thus, the creditors are more likely to accommodate in such cases.
Together with a reasonable credit standing, the guarantor could be one of the family members or relatives, a friend, or maybe a workmate. Nevertheless, it is crucial that such person is fully aware what they are getting themselves into and their responsibilities. More to these, they should know that the obligations that they will have could be used to their own benefit whenever they want to attain a loan in the future.
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Cash Advance Credit Card
Credit card advances are more expensive than bank loans but they have perks that outweighs the setbacks. Some of these are the fact that you could immediately be funded in matter of days instead of waiting for months. Also, no collateral items are pawned or left in order to make loans.
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Q&A: How can you go about getting a personal loan from a bank? What collateral do you usually need?
Question by Mike D!: How can you go about getting a personal loan from a bank? What collateral do you usually need?
I will probably need to replace my car soon, but I don’t know that I want a traditional car loan because it would require having more insurance, and thus be rather expensive for me. (It’d be about double for me, as I don’t have a spotless driving record). I was wondering if instead I could get a personal loan from the bank, say in the neighborhood of $ 3-5K and use that for a car thus saving me a bunch of money by not needing collision coverage if I could pay for the car in cash.
Now the questions … is this possible, or is there usually some stipulation that you can’t use a personal loan for a car? What sort of collateral do you usually need for a personal loan? If you have good credit, can you get one w/out collateral? Any info would be greatly appreciated! Thanks!
Best answer:
Answer by WhiteWolf359
I don’t know what state you live in, but in Florida you are required to have collision insurance for at least $ 10,000, even if you own your car. As to personal loans, yes, if you have good credit, you can usually get one with no collateral. Just explain to the bank that you want the money to purchase a new car, and arrange a repayment schedule based on your current income. Most banks will do that.
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