There are circumstances, such as being on a delinquent list, for which we may need a guarantee to obtain financing. We tell you what they are and what are the different loans with collateral.
Having a payment guarantee is a good way to access financing when you are in a delinquent file. In this way, the entities have the assurance that the debt will be paid and therefore, you will be able to obtain the financing you need. In this post we will tell you what types of collateral and loans with collateral you can request.
Loans with collateral are those in which the applicant or borrower (person receiving the financing), gives the lender (the financial entity) a payment guarantee, so that in case of not complying with the obligation to pay the debt, the Bank keep this one.
In this way the bank assumes less risk and is sure that the credit will be paid, either with the fees or through the guarantee.
Types of loans with collateral
There are different ways to access loans with collateral , since there are different types and each has different characteristics. We tell you what they are:
Loan with the guarantee of a person:
In this type, there is a third figure apart from the borrower and the lender, is the guarantor. This works as a guarantee of payment of the borrower, committing that in case the latter cannot assume the payment, the guarantee must take over .
Normally this type occurs among very close relatives, since it entails a risk, and before signing and accepting to be someone’s guarantee of payment, it is necessary to analyze well the consequences that this can have, since in case of non-payment of the holder, his Debt would become ours.
Where to request it:
E-Money: is an entity that offers this type of financing. You can access an amount between $ 2,000 and $ 8,000. Betting on trust in people, therefore, does not take into account if the applicant is in ASNEF or has negative financial records.
Loan with the guarantee of your car:
With this financial service you can get money by putting your car as collateral. Its operation is simple; The entity retains ownership of the vehicle for the life of the credit and as long as you can continue using it.
Once the repayment period is over and the debt has been paid, the car will become your property again. It is a simple way to be able to access financing, but it must be taken into account that in case of default, we could lose the car.
Where to request it:
Good Finance: This portal charges your car completely free and transparent so you can access up to $ 10,000 of financing by putting it as a guarantee.
Good Credit: If you are in ASNEF you can get up to $ 10,000 through its Good Credit service. The main requirement is that the vehicle must be in your name and be less than 10 years old.
Loan with the guarantee of a house
These are the so-called home equity loans; In this case, the guarantee is a property or dwelling that the applicant must provide as credit guarantee. In order to request it you must be the owner of the property and it cannot have economic charges or have very few (minimum that 70% of the mortgage is already paid).
Before requesting it, we must be sure that we will be able to face the monthly fees, since in case of default we could lose the home. They offer a personalized service, analyze your situation and conduct a study of the products that offer home equity loans. With this entity you can access an amount of up to 60% of the value of the home you put as collateral.