Guaranteed Unsecured Loan

Since a guaranteed unsecured loan is extremely unlikely to be the great deal it is advertised to be, you should consider whether alternative means of obtaining credit would be better for your finances. Generally, a 'guaranteed unsecured loan' would appeal to you if you are looking for a short-term, relatively small loan. If you feel that you are likely to be able to pay back the loan within 6 months, you may be able to use a credit card with an introductory offer of 0% purchase to obtain the credit instead, meaning that you would save significant amounts of interest. However, the caveat would be that if you were unable to repay the credit within that time period, the interest would be significantly higher.

A guaranteed unsecured loan would require a loan provider to lend you money with no regard for your credit history, financial circumstance or sense of responsibility as a borrower. In order for a guaranteed unsecured loan to be issued, the loan provider would therefore need to take large amounts of personal details from you, including your bank details, address at home and at work, and your full salary details. Consider a loan from the bank in the form of an overdraft as an alternative, if you are looking for a relatively small amount of money, because the interest repayments will be lower and you will not then have to reveal personal information to an unfamiliar company. Do make sure that if you negotiate an overdraft with the bank that you keep within the overdraft limit, otherwise you are liable for hefty fees that will outweigh the interest that you have saved from the unsecured loan.

Get Unsecured Loan advice today!

Guaranteed Unsecured Loan: The Basics

• Loan companies will advertise a guaranteed unsecured loan to appeal to consumers who have been turned down for unsecured loan in the past, playing on the frustration that they will feel through being unable to obtain credit.
• Guaranteed unsecured loans would require a loan provider to lend you money with no security whatsoever, and this is not realistic.  In fact, you are required to enter significant amounts of information about your employment, banking and current credit arrangements.
• If you are in debt already, or you have had difficulty in paying back credit in the past, you should be wary of companies that are prepared to offer you a guaranteed unsecured loan, because there are likely to be severe financial penalties for missing loan repayments.  If you are struggling with your debt, consider a debt management plan as an alternative to using a loan to consolidate existing debts.