Let’s say you have a little brother, and this little brother has a problem with always spending more money than he has in his checking account. Consequently the overdraft fees really start to pile up on him as he chronically overdraws. So, he’s almost always, shall we say “short on liquid funds” and now his only vehicle has broken down and his spouse has no way to make it to her job. His only option is likely to be bad credit guaranteed personal loans.
Why is this kind of loan a good fit for your brother? First of all, guaranteed bad credit loans are much better than the alternative. The fact that they’re guaranteed means they’re going to be much safer and wiser for both the borrower and the lender.
Most people don’t even know what a guaranteed loan is; at least they don’t know what the “guaranteed” part is. In this case a bad credit guaranteed personal loan means any loan given to someone who has behaved poorly with her credit in the past and now has to have some additional help to convince the bank or lending company to give her the money. Usually an organization to which the borrower belongs will back him up in seeking the loan - the Veterans Administration would be a good example of this.
If the prospective borrower’s organization will take on the responsibility of guaranteeing the person’s debt, then the lender is going to be much more likely to extend credit to the person in spite of the fact that at some point in their life they’ve neglected to keep other loan payments current. The best person to talk with might be the grup’s president; let him or her know how serious your situation is and promise to repay the money promptly.
If the club or group the borrower is asking to back him up won’t give him that security he’ll have to qualify for the loan on his own merits. That could be tough due to his not-so-great credit, but not impossible. There is such a thing as a bad credit personal loan, and if he can provide some type of collateral the terms of the loan won’t be outrageous.
For the bank to be willing to give him this loan he’s going to have to produce a couple of things. First of all, there’s the collateral we already mentioned. Beyond that they’ll need to see both proof of income (such as a pay stub from a recent paycheck), and also some personal references from a boss or landlord that lets them know the loan is likely to be repaid.
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