Guaranteed Personal Loans Information

Sometimes, life happens.  You may have a once-in-a-lifetime opportunity to take a dream vacation.  Or you may find that you overspent a little on your credit cards “just this once.”  You may have a medical or other personal expense that you weren’t expecting.  How can you help finance life’s little surprises?  A guaranteed personal loans may help.

What is a guaranteed personal loan?

Many companies offer personal loans to virtually all qualified customers.  In other words, if you meet their acceptance criteria, they will guarantee you a loan.  It’s as simple as that – or is it? 

Who Can Qualify for a Guaranteed Personal Loan?

The key is, of course, that phrase “if you qualify.”  Most lenders will offer a guaranteed personal loan of up to $5,000 pretty much right away to customers that can demonstrate the following:

• Good credit rating (650 or higher)
• A good monthly income (dependent on the region of the country)
• A job history of one or more years

Customers with this type of profile will be able to borrow more money, at more attractive interest rates, than other customers.  Some the larger financial institutions that offer loans in this market include:

• Bank of America
• Chase Bank
• CountryWide Mortgage (for people who own their own home)

What if I Have Bad Credit?

Many individuals seeking guaranteed personal loans are doing so because their credit is not as positive as they would like.  If you have a credit rating of below 650, you may still be able to get a loan from one of the lenders noted above. 

You might also want to consider companies that specialize in providing services to those with less-than-stellar credit.  However, if you consider these options, be sure to ask yourself the following before proceeding:

• What is the interest rate this lender is asking me to pay?
• Is there a penalty for early payment?
• What is the timeframe in which this loan is due?
• What is the least amount I need to borrow?  Bear in mind that many lenders will offer guaranteed personal loans of $1,000 or less with no collateral and no credit check.  However, the interest rates on these loans are very high, so be sure you understand the terms before signing anything.

Is There Anything I Should Be Cautious Of?

Frankly, guaranteed personal loans should not be used to finance a life-style you cannot afford.  If you find that you are consistently borrowing several thousand dollars a year to buy vacations, cars, electronics and services that you cannot afford based on your current income, you should look for ways to cut back as opposed to looking for more and more loans.

Likewise, many people get in to financial trouble because they take out too many high-interest, short-term loans that they are unable to pay back in a timely fashion.  Then they take out more loans to cover the costs of the previous loans and so on.  If you find yourself in a situation like this, it’s time to talk to your creditors about arranging more equitable terms and find a way out of the credit crunch cycle.