Modern banking systems provide a large scale of credit options that vary extremely in the total amounts of landed money, as well as in terms of credit use and repayment. A guarantor loan lender will allow you required an amount of money if they are convinced that you are capable of repaying it or if you have provided ways for lenders to get repayment in other ways aside your profit. Most loans are secured with your or your guarantor’s property. With the increased number of people not possessing their own homes, clients frequently ask about the options to get loans with guarantor non-homeowner.
Basics of unsecured loans
Roughly divided, there are two types of loan you can apply to. The so-called “secured” loans are usually granted for huge amounts of money and this type of credit imposes some strict terms. If submitting an application for the secured loan, you have to be a homeowner, your guarantor has to be a homeowner too, there shouldn’t be traces of bad credit loans history in your record and the lender will provide you with 7500$ or more. These criteria are becoming hard to meet for too many people and the non-homeowners are put in an unfair position. Just because a borrower doesn’t possess a property or real estate, it doesn’t have to mean he won’t repay the debt timely using only regular income. Realizing this, some lenders are offering “unsecured” loans that entitle non-homeowners to credits too. The basic idea is that non-homeowner guarantor loan doesn’t require you or your guarantor to possess any property when applying for a loan.
Criteria for non-homeowner loans
Since unsecured loans aim to provide people without property with the same chances and opportunities as homeowners, relying on their responsibility to repay it back in the stipulated time frame, the basic idea is the same. You will submit the application, require a certain amount of money, provide the contract in which your guarantor accepts to come first and pay off your debt if you fail to do so and the rest is up to the lender. However, the benefit of the unsecured loans is that neither you or your guarantor need to possess property. This loan is approved to tenants or people still living with their family or friends as well. This loan system, also, allows you to apply for the money even with a bad credit loans history.
Cons of loans with guarantor non-homeowner
This loan model is created by lenders to allow non-homeowners to participate in the credit system without mortgages or other legislative manners of securing the loan, which makes it the perfect opportunity for those who are at the beginning of financial development. The major downside is the limited amount of money. Non-homeowners are allowed to apply for loans up to 7500$, providing only proofs of their and their guarantor’s regular income. There is no age limitation, as long as you are over 18 and your credit history is clean.