The Most Common Types of Guaranteed Loans
When you hear the term guaranteed loan, most likely you think of a loan that is guaranteed to be issued. Or maybe you think of a loan that is guaranteed to be paid in full. Depending on your perspective, a guaranteed loan can mean different things. In truth, there are several types of guaranteed loans, some more common than others.
Guaranteed personal loans are a very common kind of guaranteed loan. They are issued to almost everyone who applies for once, hence the name guaranteed. They generally have really high interest rates since most of the people who borrow are considered high risk. This type of loan works well for people who do have bad credit and are unable to get other types of loans because your credit history doesn't factor in to whether or not you are granted the loan. Once you apply for the loan, you usually qualify and have the money in your hands within one day. They are one of the fastest and easiest ways to get borrow money.
Another kind of guaranteed loan is a government guaranteed loan. There are a couple types of loans that fall under the category of a government guaranteed loan. The government guarantee simply means that the government backs the loan. This takes away the risk to the lender since the government is shouldering the responsibility for any default on the loan.
One very common government guaranteed loan is a student loan. There are several different student loans including Stafford and Perkins loans that the government backs. Since the government is backing the loan, lenders are usually not as concerned with the borrower's credit history. Students can usually receive pretty good interest rates with their student loan as well thanks to the government guarantee.
For most lenders, it is just considered too risky to lend money to someone for a new business. Especially in today's economy, there are just too big of a chance that the business will fail leaving the borrower unable to pay back the lender. Lenders wouldn't be willing to take the risk without the government backing the loan. With the government business loan, there are more opportunities for people with a dream to make the dream a reality and become a business owner.
So whether you want to start your own business or are looking to be able to get some extra cash quick, guaranteed loans are a very helpful, common way to meet your financial needs.
Guaranteed personal loans are a very common kind of guaranteed loan. They are issued to almost everyone who applies for once, hence the name guaranteed. They generally have really high interest rates since most of the people who borrow are considered high risk. This type of loan works well for people who do have bad credit and are unable to get other types of loans because your credit history doesn't factor in to whether or not you are granted the loan. Once you apply for the loan, you usually qualify and have the money in your hands within one day. They are one of the fastest and easiest ways to get borrow money.
Another kind of guaranteed loan is a government guaranteed loan. There are a couple types of loans that fall under the category of a government guaranteed loan. The government guarantee simply means that the government backs the loan. This takes away the risk to the lender since the government is shouldering the responsibility for any default on the loan.
One very common government guaranteed loan is a student loan. There are several different student loans including Stafford and Perkins loans that the government backs. Since the government is backing the loan, lenders are usually not as concerned with the borrower's credit history. Students can usually receive pretty good interest rates with their student loan as well thanks to the government guarantee.
For most lenders, it is just considered too risky to lend money to someone for a new business. Especially in today's economy, there are just too big of a chance that the business will fail leaving the borrower unable to pay back the lender. Lenders wouldn't be willing to take the risk without the government backing the loan. With the government business loan, there are more opportunities for people with a dream to make the dream a reality and become a business owner.
So whether you want to start your own business or are looking to be able to get some extra cash quick, guaranteed loans are a very helpful, common way to meet your financial needs.
About the Author:
Trinity helps people to learn about student loans, how to find guaranteed loans, and about personal loans for bad credit.
posted by Credit Counseling at
5:02 PM
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