Monetary needs often arise when we do not have access to funds or we are already in the middle of the month. For those who are salaried individuals, it becomes a tight situation to manage such unexpected needs and requirements. Many credit unions, financial institutions, and lenders who operate online offer short-term loans that may help people in need. Arranging money quickly is a difficult and challenging job. To resolve such immediate and short-term issues, people often consider taking out Loans with No Guarantor. These loans are easy to apply for and don’t require any guarantor to co-sign the loan application with you. Moreover, you can easily spread the cost of repayment for over twelve months. Depending upon your needs, you may choose a long-term no guarantor loan or a short-term no guarantor loan. But before making your decision, consider the pros and cons of this loan to choose the right product for your financial needs:
Pros of a No Guarantor Loan
To resolve the imbalance created in your life due to lack of money, these products are quite handy and useful. Listed below are some of the advantages of a personal loan:
1. Quick Documentation
You do not need to go through many hassles while applying for this loan. The entire process of borrowing takes place online. While filling up the application form, you may need documents to prove your identity, income and address.
2. Abundance of Choice
There is a multitude of options available online for unsecured loans. You may choose a product from a wide range of options. The more options you have, the better you can choose.
3. Fast, Easy and Convenient
Once the lender has your application, they will conduct necessary and required verification to assess your loan affordability. The decision of most the lenders is displayed instantly and that saves a great deal of time.
Cons of a No Guarantor Loan
It is always necessary to weigh an option by considering both the pros and cons of a product. Listed below are a few disadvantages of this loan:
1. Credit Score at Risk
Although none of your valuables is at any risk if you default on the repayments, your credit score is at stake. If you fail to make the repayments on time, your credit score will be severely ruined and this may limit your borrowing options in the future.
2. Prepayment Penalties
Not all lenders are the same. The Terms & Conditions of every lender differ from each other. Some lenders may charge you a penalty if you pay off the loan early and some may not charge you for paying off early. Therefore, it is important to read the entire set of conditions proposed by the lender at the time of borrowing.
Availing a No Guarantor Loan can help you resolve your financial emergencies smoothly. But you have to be careful regarding the repayments. These loans are great financial tools only if used efficiently. Make a repayment strategy and know how much you can afford to repay. Make the decision basis on your ability to repay the loan on time and in full.