If your credit is a little bit on the weak side, you may find that when you go to the bank to get a loan, the banker want you to get someone else with good credit to co-sign your loan, or become a guarantor for you. This simply means that if you default on the loan, the guarantor will have to pay the loan for you.
As you can well imagine, finding someone who will agree to that would probably be somebody not in their right mind or they are asleep when you get them to sign.
However, there are loans that are called no guarantor loans that you can apply for over the internet online
. While you do have to have some kind of a credit rating, it usually does not have to be perfect, and in most cases you just need to show a steady income and own a checking account.
These loans are also called payday loans, as they are really short term loans where the borrower has to pay the loan back along with interest by the next payday of the borrower. This is not all that difficult as the amounts that are loaned are kept in small amounts of between around $300 to $900.
Once the loan is approved, you will receive it by a direct deposit to your checking account within a day or two. It doesn't get any easier than that.
Once you obtain a no guarantor loan and you are able to pay it back on a timely basis, then some companies will ease the requirements and offer to loan you money in higher amounts, with a longer time to pay back the loan.
Interest rates are naturally going to be higher with these types of loans, but if that is the only place where you can get a loan, it is probably worth it. With the economy being like it is, many working families find it very difficult to save money for emergencies or to even borrow money from any source in such situations.
So this type of loan service is a very much needed commodity in our current economic situation as normal families have no resources for emergencies such as family illnesses where a member has to be admitted to the hospital, car or appliance breakdowns, and other such dire emergencies. The loans with guarantor is a godsend
for families who are in dire straits financially.