When a loan is requested and approved, there’s a chance that the borrower may not be able to come up with the money needed to pay off the advance. With a guaranteed loan, a third party is involved and provides surety to the lender that the credit will be covered should the borrower default by purchasing the debt.
There are generally two types of guaranteed loans: Limited or unlimited. For the former, the third-party or guarantor is only responsible for a portion of the debt owed. For the latter, the entirety of the balance must be assumed.
Many loans have guarantees built within them, but aren’t guaranteed loans by definition. For example, when taking out a car loan, a borrower with limited credit may need the co-signature of someone else who has a more significant credit history. Should the owner of the loan default, the co-signer guarantees the lender that they will pay for the debt if the borrower is no longer able.
For a guaranteed loan, the third-party that provides financial coverage to the lending institution making the loan is usually a business. A student loan is an example of a guaranteed loan, the guarantor usually being the federal government.
Even though Just Military Loans doesn’t offer guaranteed military loans, the approval process is simple and straightforward and guaranteed to satisfy. Whether high credit or low credit, we specialize in all credit ranges and have been providing active duty military members with the funds they need quickly and efficiently for all branches of the military.
For more information on our products and suite of services, visit Just Military Loans’ Knowledge Center.