Guaranteed Acceptance Loans: The Eligibility
Guaranteed Acceptance Loans are popularly known as payday loans with inflated interest rate. In financial market mostly two types of loans are available being marketed by the bank and other financial institutions. These two types of loans are unsecured loans and secured loans and guaranteed acceptance loans are categorized under unsecured category because in these cases the borrower has no formality to lend any collateral security against the loan amount.
In most of the cases guaranteed acceptance loans are pre-approved loans and depend largely on the credit score of an individual and his asset values as declared in his income tax files. In these cases mostly the trust ability, social profile, the loan paying habits and existing loan paying tracks are considered as the basic qualifications to get the loan. Perhaps the lack of collateral security in loan process stands responsible for the higher interest of the loan because approval of these loans underlines bigger risk for the lender hence he expects better rate of profitability out of this loan process.
Needless to mention that availing guaranteed acceptance loans are comparatively tough job in comparison to other secured loans. There are certain criteria for these loans and often these loans are offered against some other existing loans or against some regular transaction values of an individual with bank or with certain financial institutions etc. where from his track record for earning or loan repayment schedule can be assessed. Alternatively, an individual with good banking history and transaction record may be considered as a good payer and a person with reliability and responsibility in terms of paying loan.
The qualifications which make an individual eligible for getting a loan of guaranteed acceptance category are called the eligibility of the loan process. Approval of an unsecured loan depends on the eligibility criteria of an individual and depending on his/her financial credibility the loan amount is often decided.
Existing loan like home loan, car loan, or personal loan is one of the credibility criteria of an individual. In some instances existing and active credit card may be accounted as the financial and payment credibility of an individual. It is taken granted that while issuing a credit card a bank or a financial authority judges the service or business details of an individual hence it is safe to issue guaranteed acceptance loans based on these existing credibility list.
In general, eligibility criteria of an individual for getting guaranteed acceptance loan are a permanent residence, availability of utility bill on the permanent address, and social security numbers as well as a declared source of legal income; in general latest income tax file or last month’s salary certificate will be the best available documents about the income potential of a person.
Guaranteed Acceptance Loans are emergency loan therefore unless it is essentially required it is better to consider the provision with clear insight about the repayment burden and high interest etc.
Kirthy shetty, Ezine Articles Expert Author. For more information: Payday Loans No Credit Checks
Get more information: Payday Loans Guaranteed Acceptance
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