How to Get a Guaranteed Personal Loan
There is only one sure way to get a guaranteed personal loan outside of having great credit. If you have collateral that meets or exceeds the amount of the loan amount you are asking for, then you can get a guaranteed loan. Most banks, lending institutions, finance companies and private lenders will give you a guaranteed loan based on a percentage of the collateral value.
- What is a Guaranteed Personal Loan
- What is Collateral
- How to Apply for a Guaranteed Personal Loan With Collateral
- Other Loan Resources
What is a Guaranteed Personal Loan
A guaranteed personal loan is obtained by using collateral to secure the personal loan. Using collateral to secure a personal loan is generally a way to get a 100% guaranteed approval rate on the loan. The lender will value the collateral and give you a loan amount based on a percentage of the collateral value. Example: If your collateral is a car and the car is worth $5,000, the lender will give you a loan amount based on a percentage of the $5,000. Lets say that the percentage is 50%. Then your maximum loan amount would be about $2,500. Every lender has different collateral value percentages that they use when they determine a loan amount. Some lenders will give you 100% of the collateral value. Especially private lenders and small banks.
What is Collateral
Collateral can be anything that holds value. The guaranteed personal loan amount will be based on a percentage of the value of the collateral. To be able to get a guaranteed collateral loan, you must first have some type of collateral that matches or exceeds the amount of the loan that you are asking for. Below are some examples of great collateral sources to use when applying to get a guaranteed personal loan.
1- Car title
2- House title
3- Motorcycle title
4- ATV title
5- Mobile home title
6- Camper trailer title
7- Jewelry title
8- Boat title
9- Equipment title
10- Any other types of collateral that holds value and has a clear title.
How to Apply for a Guaranteed Personal Loan With Collateral
The types of loans a person can get by using collateral are personal loans, bad credit loans and any other loan type. Most lenders will look over a bad or poor credit history if the collateral is sufficient to meet the loan amount. To get a guaranteed personal loan you must:
1- Gather together the collateral and determine the market value of the collateral.
2- Call your lender or lending institution and ask them if you can use the collateral as security against a loan.
3- Inform the loan officer of the value of the collateral and how much you asking for in the loan amount.
4- If your lender or lending institution takes collateral against the loan, they will inform you to bring the collateral title in to them.
The lender will then look over the collateral title information and determine if its value percentage is worth the loan amount you are asking for. If so, the lender will cut you a check for the loan and you will have just closed the deal on your first guaranteed personal loan.
Tip- Call around to different lenders and lending institutions to get the best rates on your guaranteed collateral loan. If one says no, call another one. There will be a lender that will take the collateral as security against a loan as long as the collateral meets the required value requirements.