The recent financial crisis in 2007-2008 has affected a lot of markets in the world. A lot of loans were rejected due to this event. To make up for the deficiency, most lenders had to ask for a guarantor. A guarantor loan is where the lender requires a different person aside from the borrower to co-sign a credit agreement. The guarantor agrees to pay the debt of the borrower in case the payment goes default.
Due to the crisis, credit ratings for most people went from bad to worst. That is why lenders had to use guarantors as a backup plan in case the original borrower goes into default. But what if you don’t have any guarantor? Can you still apply for a no guarantor loans with bad credit? The answer is yes.
A no guarantor loan is one of the fastest ways to obtain a loan when you are in need of fast cash. The approval time for these loans usually is less than a day. The 24 hour period includes registration and after it is approved, the bank transfer.
The need for a guarantor is what most people worry. Getting close friends or relatives to co-sign an agreement is a lot harder that you think. With a no guarantor loan, all you need is a few document and basic information which you can send online easily.
Before finding a no guarantor loan make sure to check your cashflow first to see if you can make the adjustment regarding their repayment schemes. You would not want to get into more debt trouble. The interest rate is higher compared to a secured loan with guarantor. Make a thorough research and know all the terms and agreement before signing up. A well-informed decision will go a long way.
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