When applying for a loan, it is usually common for the bank or private lender to require us to present a guarantee that responds to us in the event of default. However, it may happen that we do not have a trustworthy person who wants to endorse us or who has the necessary financial stability to do so.
As a solution, we can currently request loans without collateral from entities that allow us to access the financing we need in a simple and fast way if we present any other guarantee of payment, such as recurring and sufficient income.
What credits without guarantee can we get?
In the market there are different entities that will allow us to get the financing we need without compromising third parties through certain financial products. Currently we can access different loans without collateral, such as mini-credits.
With them, we can access an amount of money that will vary depending on the lender we are dealing with, as well as its cost. Before making a request for loans without collateral we must take into account that we must guarantee that we have the financial capacity to repay the amount of money that we have been loaned to us. That is to say, to demonstrate that we have a series of monthly and sufficient income to face the repayment of the loan without guarantee that may come from both a payroll and a pension, an unemployment benefit, a scholarship.
As we have said, we will be able to access different credits without a guarantee if we demonstrate that we have sufficient income. However, we cannot not be granted this type of loan in all cases, so it would be advisable that we take into account the following recommendations before considering applying for this type of financing:
- It will always be easier if we do not require a guarantor if we request a small amount of money.
- It is a better option to apply for loans without collateral than to ask for some type of mortgage-backed loan, since how we will have to put our home as collateral we run the risk of losing our home in the event of default.
- In any case, loans without collateral are negotiable (especially if we deal with a bank), because depending on our financial profile, the amount of money we need or the term that best suits us, the conditions offered by the entities may be adapted to our needs.
Why do they usually require a guarantor to grant loans?
It is customary that when requesting a personal loan, both to a bank and to another financial institution, we are required to present an additional guarantee that ensures the return of the amount they have loaned us. This means that in order to grant us the financing we need, we will have to have at least one guarantor who will respond jointly and severally for us in the event that we default.
This means that our guarantor must respond to the return of the loan with the same obligations as we do in the event that we do not fulfill our obligations, that is, to reimburse the installments in case of delay. For this reason, our guarantee must have sufficient income to face a possible demand for non-payment, since it will have to respond with both its present and future assets.