How to Get a Guaranteed Personal Loan

A guaranteed personal loan can be a good stopgap solution for those times when you need quick cash to cover unexpected expenses and you want to avoid the hassles of a bank loan. With a guaranteed personal loan, you won't have to show proof of your income stream as part of the application process, and your request can be processed relatively quickly.

Difficulty: Moderate

Instructions

Things You'll Need:

• Good credit (recommended)

Get a Guaranteed Personal Loan

1. Identify situations in which you might need a guaranteed personal loan. If you're a renter suddenly left short near the first of the month, a single parent encountering unexpected child care expenses or a commuter with a broken-down car and no way to fix it, a guaranteed personal loan can help. Avoid borrowing for frivolities like home furnishings and vacations.

2. Ask your regular bank for a referral to a reputable guaranteed personal loan lender. Better yet, collect multiple professional opinions and "triangulate." Triangulating is the practice of finding a good lender by dealing only with companies you received multiple referrals to from different sources.

3. Expect that your approved loan limit will be relatively low for your first guaranteed loan. Because guaranteed loans are given out with little in the way of collateral or credit checking, lenders protect themselves by capping the amount you're eligible to receive fairly strictly. If you need a guaranteed loan in the future, you'll be able to get more money once you've proven you're good for paying it back. You will also qualify for better loan terms if you have good credit, and people with bad credit may be denied altogether.

4. Compare the terms of the loan--like how long you are given to repay it and what penalties apply if you miss payments or default--in addition to interest rates. Always read the fine print of loan contracts closely before you sign them.

5. Apply with the loan company that offers you the best terms on the money you need.

6. Arrange to get the money deposited directly into your checking or savings account by the lender. Make sure you adhere closely to the repayment terms as stipulated in your loan agreement, or you may be stuck paying extra costs in fees and penalties.

Tips & Warnings

• A "guaranteed personal loan" is also sometimes called a "payday loan" or a "bad credit personal loan."
• Check out the lender you're considering with the Better Business Bureau before signing anything. Guaranteed personal loans are almost exclusively borrowed through Internet-based companies, and you should double-check the company's track record before you borrow from it.