subject: Choosing the Right Unsecured Guarantor Loan [print this page] Choosing the Right Unsecured Guarantor Loan
Are you looking to lend some money? But you do not know what options are available for you? Wondering what to choose from between secured loans and unsecured Loans? Are you afraid of losing your property which you pledged as collateral?
There are a lot of options in the market right now however you need to know which works best for you. Secured loans are loans acquired with collateral. Collateral means a security pledged for the repayment of a loan. This includes your home, car, and appliances. This type typically has a lower interest rate than a Guarantor Loan. But your assets or collateral are at risk, the lender has the right to confiscate the assets or collateral you declare, whenever you fail to pay your obligation to them. Mortgages and car loans are the most common types of secured loans. Some people make secured loan as their second option, they only consider it when they are having problems in getting approval for an unsecured loan. If you want to borrow large amounts of money I suggest choosing secured loans. Depending on your collateral or assets you pledged you can borrow a bigger amount of money in secured type loans.
Unlike secured loans, Guarantor Loans are loans that can be acquired without any collateral and less documents needed. A good credit record is all you need to have, although you might experience issues in getting approved if you have a bad credit history. In unsecured loans you can enjoy the convenience of quick approval and hassle free process, but in return you have to pay higher interest rates. An unsecured loan is also known as signature loan. All you need is to sign the documents.
Choose the right one for you based on your needs. Both have their advantages and disadvantages if you want a bigger amount and you have the collateral go for the secured loan as interest rates are lower though the risk of losing your assets are at stake. If you are looking for convenience and have no collateral to put in then a Guarantor Loans is the right way to go.
With these loans you would generally need a homeowner to back up your application and effectively act as your guarantor. They would effectively act as a back so if you couldnt make a re-payment over one of the months, the burden would fall on them.
