Gone are the days when guarantor was the vital element of the loan products. You were restricted to have someone to guarantee on your behalf and assure the lender about the timely repayments. It was so embarrassing to let someone else take your responsibility despite the fact that you are a mature person. To make someone your guarantor you were also in a kind of pressure to tell about your financial situation to someone else.
After the without guarantor loans have come into picture, things have become better now. Take a look at what reasons make borrowing possible without the backing of any second person.
When the borrowing happens online, it is easier to go without guarantor
Yes, the online or first direct loans lending is the advanced version of finance industry. It facilitates borrowing without any obligation of guarantor. The procedures are 100% paperless and this leaves no space for any physical formality. And you know what, despite this, the lender does not compromise in the application procedures. You just apply, get approval decision and receive funds.
The best and amazing part? No constraint of credit score status
The no guarantor loans are always in demand and one major reason for this is the ‘no restriction zone’ on credit score. Do you understand what does this mean? This means, whether you have an excellent credit score, good credit score or poor credit score, you can apply for the loans and can also get smooth approval.
The reason behind this is liberal policy to focus that gives more focus on the repayment capacity of the applicant than the credit score. If your income status is good and also the income-outgoing ratio is perfect to borrow funds, approval is a sure thing to come. Here again, the compulsion of guarantor, loses its annoying importance and the fund seekers can borrow money on their own repay capacity.
The small amount does not need any guarantor back up
The loans without guarantor are of short-term nature and the loan amount is small. Obviously, when the borrowed funds are not big in number, there is no need to provide a guarantor. Nothing in this world can escape the rule of logic. This again breaks the stereotype culture of providing the obligation.
The purpose of the loan is also a big reason
The loans are for short-term purposes only. Urgent medical emergency, sudden flight for a funeral and why always sad reasons? Welcome of a new baby at an unexpected time, arrangement of deposit amount to back a big purchase for instance car or home, there are many reasons. But if the reason is small or may be big but the need is small, then there is no need to bring a guarantor. That is required only in the case of long-term loans. Every loan product has a purpose and that decides its terms and conditions. There is no logic in getting in the chaos of obligations if the financial need is small. In fact, you cannot qualify for a loan if your purpose does not match to its actual nature.
The above points can easily make you understand and realist that why and how the guarantor is not required. Next time you borrow funds you can be sure on the loan approval. Isn’t it good? Oh, in fact, it is great!!