When you start looking for financing, there are several essential factors that you must take into account, such as the amount of money you want to request, the time frame established to return the loan and, finally, the amount of the monthly installments. see highriverhighlandgames.com for further notes
In addition to this, there is something that naturally worries users: the interest rates applied, and what fees or other associated expenses they will have to pay.
These factors are mainly influenced by the user’s creditworthiness assessment, that is, their economic situation (income / expenses ratio) and their credit history.
In this sense, the worse the credit history, the higher the interest, due to the greater risk of default associated with lending you money.
In case the entity considers that the risk of default is too high, your loan cannot be granted.
This situation may change if you present a guarantee when applying for your loan.
However, many banks have taken this as usual and request an endorsement even from users with a good economic situation, where it should not be a requirement.
In this article of our financial guide, we tell you more about what a guarantee is, what non-guaranteed loans are and how you can apply for them. In addition, we detail the advantages and disadvantages of each.
Do you have questions about which one to choose? From bankare we have prepared a visual guide that we hope will help you evaluate whether applying for a loan without collateral is the best solution for you.
What is an endorsement?
A guarantee represents the guarantee of payment of a loan, generally of a high amount.
In most cases, this guarantee is about the applicant’s home or vehicle, valuable assets that, in case of default, the banking entity could seize, thus recovering the amount lent to the user.
In cases such as mortgages or vehicle loans, the guarantee is attached to the loan application : since this money is used for the purchase of a home or a vehicle, the bank may claim these assets in case of non-payment of several payment installments..
In the case of guarantors, these are third parties who present their assets or income as payment guarantees, thus supporting the applicant’s solvency assessment. This occurs with people who do not have enough income for their loan to be granted.
In this situation, the guarantor agrees to face the payment of fees with their own property in case of default by the applicant.
Therefore, when you apply for a loan with a guarantee, it is important that you are absolutely sure that you will be able to repay the amount borrowed, as a default could result in the seizure of your assets or those of your loved ones, in case someone has Supported your payment.
Since financial circumstances may change from one day to another, more and more Spaniards are opting for a loan application without collateral.
What are loans without collateral?
As the name implies, unlike loans with collateral, loans without collateral may be granted without the need to present a payment guarantee.
In the case of loans without collateral, the creditworthiness of the user will be assessed based on his monthly income and expenses, as well as his personal situation (for example, if he has a fixed job) and his credit history, paying special importance to whether The user is listed in some delinquency record, such as credit institutions.
In this case, if a user has enough income to pay off a loan, they can use financing without putting their assets, such as their home or car at risk.
However, it is possible that the fact of the changing economic situation means that the costs associated with the loan without collateral are a little higher, since the lender faces a greater uncertainty regarding the risk of default.
In this case, the best solution is to compare the different loan offers, together with their conditions and characteristics, and determine which is the best option for your situation.
If you are considering applying for a loan without an online guarantee, there are several associated advantages. For example, lenders are much less demanding when you justify the purpose of your money.
In addition to this, loans without payroll or online collateral carry the great advantage of avoiding paperwork normally associated with banks, so the loan application process is incredibly fast.
What requirements are necessary to apply for a loan without collateral?
All types of loans have as a condition a series of requirements, depending on which applications will be stricter or as for example in fast loans, lower conditions.
In the case of loans without collateral, the requirements are as follows:
- Be of age
- Have a valid identity document
- Be a Spanish resident
- Demonstrate the existence of monthly income on an ongoing basis
- Have your own bank account, that is, be the owner of it.
In the event that you meet the aforementioned requirements, you can go to a physical or online banking entity such as bankare and request a loan without collateral.
It is important to mention that when applying for a loan and meeting the requirements does not mean that it will be approved with total security.
The chances of it being accepted are high but banks will take your credit history into account. In the event that, unfortunately, you are on a delinquent list such as credit institutions, the loan could be denied.
If this is your case, go to our offered list of loans and find out which banks accept loans with credit institutions.
Loans without collateral vs Loans without collateral
Have you ever wondered what is the difference between a loan and a loan without collateral? Are there really differences or both are the same?
bankare wants to help you and that’s why we explain the differences in this section.
A loan without collateral is a bank operation in which the client requests a quantity of money from a bank and they agree on the monetary amount, a repayment term and interest. The requested money is received directly and in its entirety.
An unsecured credit is a bank operation in which the client requests an amount of money that he can receive gradually and in which the interest paid is based exclusively on the amount used by the client.
Thus, the main difference between the two is interest. A loan has fixed interest on the total amount while a loan varies as they depend on what the client has used monthly or annually. In addition, another difference is that a loan does not give you the option of extending the amount of money once it has been requested since it is fixed, instead, a credit can be modified.