Which is more profitable: loans based on a statement without a guarantor or loans with a guarantor?
The offer of non-bank loans is addressed to a wide range of recipients, both people with high creditworthiness and people with lower ability. The most offers for this type of loan can be found on the Internet. Traditional payday loans are loans based on a statement , so they do not require an income certificate. There are also loans with additional collateral. Which is more profitable: loans without a guarantor or loans with a guarantor ?
Loans without a guarantor
Everyone who earns enough income to take out a loan and has not had problems with payment in the past should choose a loan with a statement . These loans should be tailored to the borrower’s ability so that he has no problems repaying them. Important in verifying the applicant for a loan is:
- the correctness of the data in the application,
- declaration of financial position, including income,
- timely repayment of other obligations.
Non – bank loans based on a statement allow you to receive cash quickly. The decisive factor here is that you do not need to attach a certificate of income to your loan application. The borrower’s declaration is the basis for any possible liability, therefore it is important to present the situation in accordance with the facts. Fraud, even if it is not seen at the stage of granting the loan, can see the light at the time of late payment. It is better to report financial problems to the lender and apply for the payment deadline to be extended. This will reduce the risk of major problems, although an additional fee may be charged for extending the deadline.
Loans with a guarantor
In the case of poor creditworthiness assessment, one should take into account the refusal to grant a loan or a loan in a lower amount than the one applied for. Low credit standing does not disqualify you from receiving a loan. In fact, the loan company is at greater risk, which is why additional security is required from the borrower. It does not always have to be of some value. Not everyone has ownership of the property they live in. In addition to real estate loans, which, however, carry the risk of losing a roof over your head, there is a loan with a guarantor . The provisions of the Civil Code, in particular art. 876-887. From a loan institution’s point of view, an additional person in the loan agreement reduces the risk of borrowing money. Importantly, anyone who can:
- will be 18 years old,
- has adequate creditworthiness (must have sufficient income),
- has the ability to perform legal transactions.
It does not have to be a person related to the borrower.
In the event of financial problems of the borrower, the resident assumes the obligation to repay the loan. A non-bank loan with a guarantor allows you to borrow a higher amount, especially if the creditworthiness of the ryrant is sufficient for this. Ultimately, the borrower and the guarantor take the risk of borrowing money. In the case of traditional loans, the borrower’s full responsibility lies without the guarantor.