A guaranteed unsecured personal loan can provide you with some quick cash to cover an unexpected debt or buy a relatively expensive item. This article will take you through some of the advantages and disadvantages of guaranteed unsecured personal loans.
Advantages of a Guaranteed Unsecured Personal Loan:
- You are guaranteed to be approved no matter how bad your credit rating is, providing you have a stable job (a way to pay the loan off).
- Very easy to apply- you can apply online by filling out a very simple application.
- The money is usually put into your account within a few days. However, you need to check with the particular lender as each have different terms and conditions.
- These types of loans are not very risky to the borrower. You are not in danger of losing your home if you default on the repayment.
Disadvantages of a Guaranteed Unsecured Personal Loan:
- As these types of loans are very risky for the lenders you will be forced to pay a very high interest rate.
- The amount you borrow is greatly limited. You may only be able to secure $1,000 to $2,000, depending on how much you earn and how much the borrower is willing to lend.
- Guaranteed unsecured personal loans have very high fees, especially if you default on the repayment.
- Very inflexible. The term of the loan will probably be fixed by the lender and you will not get to choose how long you want the term to be.
