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Guaranteed High Risk Personal Loans

Sonia Nair Jan 10, 2019
If you need fast cash, but have poor credit ratings; then a guaranteed high risk personal loan may prove useful.Get information about the various aspects of this type of funding.
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 financing is basically meant for those, who do not qualify for other types of loans, due to their bad credit ratings. If 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 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 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 span of 24 to 48 hours.

Eligibility Criteria

Though, this funding is called guaranteed high risk personal loan, it does not mean that the lenders will not reject any application for it. Even these have a specific criterion, that is to be met by every applicant, so as to get qualified. Here 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, that fetches him at least USD 35,000 per year. 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 (often as much as $36 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 future.
Make sure to go through the terms and conditions, as guaranteed high risk personal loans may charge an extension fees, for late payments. If the borrower wants to make the full payment before time, prepayment penalties would be levied. As there are many fake lenders, be really cautious while divulging details as social security number and bank details.