5 Personal Loan Guarantee Reviews To Know

When it comes to personal loans, having a guarantee can provide an added layer of security for lenders and borrowers alike. A personal loan guarantee is a contractual agreement where a third party agrees to take on the responsibility of repaying the loan if the borrower defaults. In this article, we will delve into five personal loan guarantee reviews to help you understand the pros and cons of this type of loan.

What is a Personal Loan Guarantee?

A personal loan guarantee is a type of loan where a third party, typically a friend or family member, agrees to take on the responsibility of repaying the loan if the borrower defaults. This type of loan is often used by individuals who have poor credit or are unable to secure a loan on their own.

Benefits of a Personal Loan Guarantee

There are several benefits to using a personal loan guarantee. For one, it can provide access to loans for individuals who may not have otherwise qualified. Additionally, a personal loan guarantee can help to establish or rebuild credit for the borrower. Finally, a personal loan guarantee can provide peace of mind for both the borrower and the lender, as it provides an added layer of security.

Personal Loan Guarantee Reviews: 5 Options to Consider

In this section, we will review five personal loan guarantee options. We will discuss the pros and cons of each option, as well as the eligibility requirements and interest rates.

Option 1: LendingClub

LendingClub is a peer-to-peer lending platform that offers personal loans with a guarantee option. To be eligible for a LendingClub loan, borrowers must have a minimum credit score of 600 and a debt-to-income ratio of 40% or less. Interest rates range from 6.95% to 35.89% APR.

Pros:

• Competitive interest rates
• Flexible repayment terms
• No prepayment penalties

Cons:

• Origination fees can be high
• Limited availability in some states

Option 2: Prosper

Prosper is another peer-to-peer lending platform that offers personal loans with a guarantee option. To be eligible for a Prosper loan, borrowers must have a minimum credit score of 600 and a debt-to-income ratio of 50% or less. Interest rates range from 6.99% to 35.99% APR.

Pros:

• Competitive interest rates
• Flexible repayment terms
• No prepayment penalties

Cons:

• Origination fees can be high
• Limited availability in some states

Option 3: Upstart

Upstart is a lending platform that offers personal loans with a guarantee option. To be eligible for an Upstart loan, borrowers must have a minimum credit score of 620 and a debt-to-income ratio of 45% or less. Interest rates range from 7.74% to 35.99% APR.

Pros:

• Competitive interest rates
• Flexible repayment terms
• No prepayment penalties

Cons:

• Origination fees can be high
• Limited availability in some states

Option 4: Funding Circle

Funding Circle is a peer-to-peer lending platform that offers business loans with a guarantee option. To be eligible for a Funding Circle loan, borrowers must have a minimum credit score of 620 and a debt-to-income ratio of 40% or less. Interest rates range from 4.99% to 27.79% APR.

Pros:

• Competitive interest rates
• Flexible repayment terms
• No prepayment penalties

Cons:

• Origination fees can be high
• Limited availability in some states

Option 5: StreetShares

StreetShares is a lending platform that offers business loans with a guarantee option. To be eligible for a StreetShares loan, borrowers must have a minimum credit score of 600 and a debt-to-income ratio of 50% or less. Interest rates range from 9% to 40% APR.

Pros:

• Competitive interest rates
• Flexible repayment terms
• No prepayment penalties

Cons:

• Origination fees can be high
• Limited availability in some states

Conclusion

In conclusion, a personal loan guarantee can be a useful tool for individuals who are unable to secure a loan on their own. By reviewing the five options outlined above, borrowers can make an informed decision about which loan is best for their needs. It's essential to carefully review the terms and conditions of each loan, including the interest rates and fees, before making a decision.

Final Thoughts

When considering a personal loan guarantee, it's essential to carefully review the terms and conditions of each loan. Borrowers should also consider the potential risks and benefits of using a guarantee, including the impact on their credit score. By doing their research and making an informed decision, borrowers can find a loan that meets their needs and helps them achieve their financial goals.