Personal Loans: The Good, the Bad, and the Ugly

Here's the good, the bad, and the ugly when it comes to Personal Loans. You require a cosigner to make it work. There's no two ways about it. A cosigner will enable you to acquire loans even if you have bad credit and the last thing you want to go through is a credit check from the trio of credit bureaus, which are TransUnion, Equifax, and Experian. Your cosigner should himself have a stable job and a good credit history in order to serve as your guarantor of sorts. Otherwise, you'll have a long road ahead of you when it comes to convincing your lender that you're good with the money. The point here is that when lending money, it's foolish to not have some sort of guarantee or guarantor as insurance for the financial risk, and no self-respecting lender would provide a personal loan without some sort of "catch" in play. There's no such thing as free money, and you'll need a cosigner in order to qualify for a loan. That cosigner will serve as your backup whenever you're late with payments and whatnot (which is something a lender would expect because you never agreed to any credit check, so it's a given that they'll expect the worst from you).

Every loan in existence has some sort of guarantee attached to it. For bank loans, they entail strict payment terms (24-36 month installments, depending on how big the loan is) and a credit check to see what your financial assets or liabilities are. For fast cash loans, it's your upcoming check (hence the other name for the loan, "cash advance" loan). For logbook loans, you need to be a car owner and you can only borrow an amount roughly equal or less than the value of your car that you've set as a guarantee. Even credit cards for bad credit have high interest rates and punishing late fees in exchange for the privilege of getting a card despite your bad credit. The personal loan is no different. You cannot get a cosigner who's in a financial mire that is as bad as or even worse than yours. Many people refuse to be cosigners because if the borrower defaults, the cosigner will be held responsible by the lender to take care of the unpaid debt. The financial reputation of the cosigner can also get tarnished by having a borrower who runs away from loan payments. There have been friendships that have ended because of the consequences of cosigning for a bad-credit borrower.