As we discussed in our previous post, when applying for a payday loan, banks will take into account your proven income to determine your credit worthiness, ie whether you can get a loan at all and how much? However, if you are unable to get the loan you want because of your income, you have the opportunity to get a guarantor involved in the loan deal, which can turn a green light at a bank.
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What kind of loan should you guarantee?
The bank can require virtually any loan that is not secured, so the bank risks its money. It is worth clarifying what the guarantor is, when it is needed and what role it can play in payday loans.
You need a guarantor if you do not have enough income and funds to take out a loan. The guarantor undertakes, with your property, to repay the loan if you fail to do so.
Anyone who is willing to take financial responsibility for the loan can be a guarantor but will usually be a relative, friend or close family member. There are two types of guarantor, the line collateral and the collateral taker: the collateral guarantor will only start paying instead of the borrower if the default is officially established, while the collateral guarantor can claim the money at any time, even if the original collateral could still be recovered. borrower. Banks only allow single-use guarantors to enter into a loan agreement, but the criteria vary from bank to institution.
So in Hungarian, if you don’t have enough income and cover for a loan, you can ask someone to stand behind your assets. If you are unable to pay, he or she will have to make financial payments. The guarantor is usually a close relative, friend, family member, or person who also receives the loan for himself or herself, such as real estate.
This is how you can avoid jeopardizing the wealth of others
So it can be seen that you can take out a loan without a guarantee if you meet the bank requirements. The first and most important thing when taking out a payday loan is to have a decent income and have a proof of income.
A bank can lend a large sum if a loan review reveals that there is plenty of money left in the family coffers that can be used to pay off the loan. Unfortunately, there is no exception to this, as the credit crunch now obliges financial institutions to make a loan payment for income verification, so you must have a monthly income from work, whether you are employed or self-employed.
Price guarantee on credit? It’s already available!
It is not always avoidable to involve the guarantor, but a borrower’s insurance coverage, which is designed to ensure that there is no problem in the unexpected situation of slipping into a payment, can cause the dreamer to have dreams. For example, credit insurance can be used to cover risks such as death, unemployment or incapacity for work.
When events occur, the insurance bank will take over the installment payment until you materialize. If you are taking out such insurance, take a close look at what the insurance covers and what the premium is, since you will have to take that premium into account from the time you take out the insurance. Fees are usually set as a percentage of the installment. You can take out credit insurance with the lending bank.