The loans that you can get if you have a bad credit history are secured and unsecured guarantor loans. The secured guarantor loans are a type of loans where you can secure your loan with your owning property (house, car or an apartment) and you guarantee with your property that you will repay the loan that you have borrowed in arranged period of time that was made in the agreement. If you are not able to repay the loan that you have borrowed than the company, bank or the lender depending with whom you made an agreement has the right to take you property from you since you didn’t fulfill the agreement that was made, therefore putting you in a risky situation if you are not able to repay the loan that you took. Although you can get a guarantor if you don’t posses any properties of your own, a guarantor can guarantee for you with his household that you will be able to repay the loan that you need, in that case the guarantor has all the obligation since he can rely on you and he trusts you that you will be able to repay the loan that you took.
The guarantors are mostly people who trust you and who can rely on you, the guarantors are mostly your family members, friends or even business partners. The secure guarantor loan is a good choice if you are in a position to repay the loan that you want to take, it is better to take some time before you decide if the secured loan is the right thing for you.
Beside secured loans there are unsecured loans that are also called personal loans for poor credit. The personal loan doesn’t require from you to posses any property on your own, but the criteria of information that you need to provide to the lenders is greatly higher than in secured guarantor loans. Since in secured loans they can take your household from you, if you are not in the position to repay the loan or do not desire to pay the loan, but in personal loans it is different.
The main difference is that in unsecured loans you don’t put any property on the risk if you are not able to repay the loan that you need, and in personal loans you can have a bad credit history or no credit history at all, but you need to provide a guarantor for yourself who can guarantee that you will be able to repay the loan that you borrowed. And the guarantor takes all the obligation over you, personal loans are a great way to get out of a debt, to go on a vacation, to buy a new car or even to invest in something that will pay off after some time, therefore the personal loans are a great way for you to get a large amount of money in a short period of time, all you need is just a guarantor.