Debt Consolidation Credit Counseling In Phoenix

Here's a scenario: your younger brother has a chronic habit of overdrawing his checking account, and the overdraft fees really stack up on him. This kid is generally suffering a cash crisis, and today is no different - his car has broken down and his wife has no way to get to work. Sounds like a case where he needs to look into bad credit personal loans.

The question is whether this loan is the right one to solve your brother's cash shortfall. Sure, any guaranteed loan is better than one not guaranteed, and I doubt your brother with his track record is going to have many other options. Even considering the loan is guaranteed tells you it's going to be the better choice both for him and also for his lender, the one who could lose all the funds they've lent if your brother doesn't fulfill his repayment commitment.

What is a guaranteed bad credit personal loan anyway - what do they mean by guaranteed? This is what it means - when a person with a poor credit history needs some cash help, banks aren't just going to line up and throw money at them - they need to make sure their investment is protected. The best way to secure their money is to approach an organization - the veterans administration for example - that the person is a member of and ask them to guarantee the repayment of the loan.

If you belong to this kind of organization - something like the VA - then the bank is going to feel much more comfortable giving you the money than they would if it was just you on your own; considering your bad credit score. I recommend having a good discussion with the organization's president explaining your commitment to repay the loan and how dire your need for the cash really is.

Now, the situation might present itself where you've asked your organization's leader to help you get the loan, and for whatever reason she isn't comfortable with the idea; at that point you're on your own. You'll have to approach the bank without her support and see if there's any way to qualify without anyone supporting you. It's not impossible, but it's not easy; and you're likely to need some form of collateral to secure the bank's investment.

Even if you provide collateral the bank is going to want you to provide them with a couple of other things so they know you're not a flight risk with their money. Some proof of income will go a long way toward comforting them; this can take the form of some recently cashed paychecks or stubs. Personal references from trustworthy people will also help.