Guaranteed High Risk Personal Loans
A person with a poor credit rating may not get qualified for most of the loan schemes. If such a person is in urgent need of cash, he may apply for high risk personal loans. Even though, it is named as guaranteed high risk personal loan; the applicant must fit into a specific criteria, so as to get qualified for this loan. The applicant must also have a basic know-how about the terms and conditions regarding this type of funding.
What is a Guaranteed High Risk Personal Loan?
This type of financing is basically meant for those, who do not get qualified for other types of loans, due to their bad credit ratings. If the lenders are doubtful of the creditworthiness of such applicants, then, what is the logic behind guaranteed high risk loans? The answer to this question lies in the various terms and conditions associated with this type of funding.
From the lenders part, it is implied that the borrowers will repay the loan in time. In order to cover up the risk associated with these loans, they charge a very high interest rate. For borrowers, who are in urgent need of fast cash, these loans can be really handy, as they will get the loan amount deposited in their accounts, within a short timespan of 24 to 48 hours.
Though, this type of funding is named as guaranteed high risk personal loan, it does not mean that the lenders will not reject any application for the same. Even these loans have a specific criterion, that has to be met by each and every applicant, so as to get qualified. The following are some of the common terms and conditions associated with guaranteed high risk personal loans.
- The applicant must be at least 18 years of age, and must be residing in the U.S. Most of these bad credit loan schemes require the applicant to have a stable full-time employment, with a monthly income of at least $1,000. The applicant must produce proof for the same.
- Even applicants with other sources of income (other than employment) are sometimes entertained by the lender, if they furnish proof for the same. The applicant must have a valid driver license or government ID card, while applying for the loan.
- The applicant must have an active checking account, without any outstanding payday loans. The lender collects the repayment amount from this account, on a weekly or monthly basis.
- As this loan is provided for people with very poor credit ratings, the lenders are at a higher risk. So, guaranteed high risk personal loans come with high interest rates (around $16 for every $100), and are usually found to be short-term loans.
In short, this type of financing can be a boon for those who are in need of fast cash and do not have any other funding options. However, as these loans come with high interest rates, they should be repaid at the earliest. Timely repayment may also positively affect your credit rating and will be helpful in securing a loan in the future.
However, make sure to go through the terms and conditions, as guaranteed high risk personal loans may charge you with an extension fees, if you make late payments. In case, the borrower wants to make the full payment before time, prepayment penalties would be levied. As there are many fake lenders, you must be really cautious while divulging details, like social security number and bank details.