While the unsecured bad credit personal loan does not ask for any warranty for the loan amount, the guaranteed bad credit personal loan on the other hand requires the borrower to comply with a number of requirements. This is one type of the bad credit personal loan that protects the lender from any circumstance of failed payments.
The guaranteed bad credit personal loan is still specifically designed and formulated to answer the problem of borrowers who have had bad credit record with some other lending companies. Since they can’t easily apply for a loan because of their credit standing, some lending institutions opened the loan service that accepts borrowers having bad credit history but still asks a minimal requirement before the loan is approved.
Some of the warranty asked by the company for guaranteed bad credit personal loans would be a monthly income record which usually plays around $1200. Also, the borrower must be able to show a checking account as one way of assuring the lending company that the borrower is capable to sustain the monthly payment. The checking account is set to be active for at least three months depending on the loan term applied by the borrower. Any failure to pay the loan through the borrower’s checking account would mean a lot to the borrower as he would be paying a big interest rate to the company as well as the checking account.
Since lending companies are more than secured on guaranteed bad credit personal loan than the unsecured type of loan program, the loan amount is easily approved and released by the company. It is one way of attracting more borrowers to try out the different loan programs of the company. Usually, the loan amount will be available for withdrawal immediately a day after the loan was filed and approved. The said amount is usually deposited to the borrower’s bank account for safe transaction and transfer of funds.