Guaranteed loans: No matter what Australian residents must meet minimum lending requirements for approval.
It is important to note that guaranteed loans are not actually guaranteed in the sense that anyone who applies for them will be approved. Most lenders have minimum eligibility criteria that borrowers must meet in order to qualify for a loan, such as a minimum credit score or income level.
However, there are certain types of loans that may be more accessible to borrowers with lower credit scores or other financial challenges.
Guaranteed loans vs. guarantor loans
You might be confused about the difference between guaranteed loans and guarantor loans. A guaranteed loan is generally a type of loan promoted to offer guaranteed approval, or it could refer to a loan with certain guarantees such as same-day payments for approved loans.
A loan that may be an alternative option available to borrowers with bad credit is a guarantor loan. A guarantor loan involves a borrower finding a co-signer who agrees to take responsibility for the loan payments if the borrower is unable to make them.
This can make the borrower less risky to the lender, and thus increase the likelihood of approval. It is important to note that both the borrower and the guarantor will be held responsible for the loan, so it is important to have a clear understanding of the terms and repayment plan before entering into a guarantor loan agreement.
Alternative loans if you have bad credit
Other types of loans that may be accessible to borrowers with bad credit include secured loans (which require collateral) and peer-to-peer loans (which involve borrowing from individual investors).
However, it is important to research and compare different loan options carefully to find the one that best fits your individual needs and financial situation. It is also important to only borrow what you can afford to repay and to make loan payments on time to avoid additional fees and damage to your credit score.