Here you will find the best loans via CitrusNorth.com and request the product that best suits your needs.
What is the guarantee of a credit?
The guarantee of a loan is what the owner of a loan offers to guarantee the payment of the loan to the lender. Depending on the guarantee, we can distinguish between several types of credits:
- Loans with a personal guarantee. Also called personal or consumer loans, these products have as a guarantee of payment the set of present and future personal assets of the borrowers, not a particular good. These credits are usually used to finance the acquisition of goods and services at a high price, although recently there have also appeared credits with personal guarantee destined to solve unforeseen events.
- Pré loans with mortgage guarantees. They are credits whose only guarantee is the property owned (or practically paid) of the owner. In this case, the borrower must not have the income to access the product and the amount that can be requested is higher than in the case of loans with a personal guarantee. They should not be confused with mortgages, which are loans for the acquisition of real estate whose guarantee is both mortgage and personal.
- Credits with another type of guarantee. It is also possible to obtain financing by placing as collateral any other specific asset (such as a vehicle or a taxi license) or a financial asset (shares, pension plans …).
In some cases, it is possible that the entity considers that the guarantee provided is not sufficient to respond to the payment of the loan and wants a guarantee to be provided as an additional guarantee. In this case, the person who supports us (the guarantor) will also be responsible for paying the debt owed to the lender.
How to get the best loans with a personal or real guarantee
Whether we ask for a loan with a personal guarantee or if we apply for a mortgage-backed loan or any other guarantee, there are several aspects to look for if we want to obtain the financing we need at the best price. Let’s see what they are:
- Applied interest rate: it is a percentage that is applied to the outstanding capital and that establishes how much money will be paid to the entity. In general, the loans with a personal guarantee and with mortgage guarantee that are not mortgages have a fixed interest rate, which remains unchanged throughout the repayment period. However, there are also loans whose interest is variable referenced to an index (such as the Euribor), which may change depending on the fluctuations of said index.
- Commissions: a credit with a personal guarantee, mortgage or any other guarantee may also include commissions, which are the cost of the steps that the entity must take to put the money at our disposal. Both the fees and the interest rate applied are reflected in the annual equivalent rate of the loan, which also takes into account other costs.
- Related products: are those financial and non-financial services that we must hire to access a mortgage or personal loan. They are usually secure, direct debits (payroll, receipts …), credit and debit cards, etc.
- Notary fees: many loans with personal and mortgage guarantees must be formalized before a notary, whose fees will be included in the price of the product.
With the Comparator HelpMyCash we can check the conditions of the best loans of the moment and compare them based on the criteria we have discussed to find the product that best suits our financial needs. In addition, if we click on the button “Contract” or “Request information”, we will access directly to the online portal of the lender, from which we can process our request.
What happens if I do not return a mortgage or personal loan?
Both in the case of loans with a personal guarantee and in the case of loans whose guarantee is mortgage or other, in case of non-payment, the property or goods placed as collateral may be seized to settle the debt contracted. However, before reaching this point, entities usually follow the following procedure:
- Collection of fees and interest for late payment. If we do not pay a loan on time, the entity will charge us a commission for each payment claim and will apply a late payment interest higher than the normal interest on the loan.
- Registration in a file of defaulters. If the default is prolonged, our data can be entered in a file of defaulters such as ASNEF or RAI. In this case, no bank or many private lenders will want to grant us loans, which will greatly reduce our chances of obtaining financing.
- Judicial claim for the payment of the debt. As a last resort, the lender can file a complaint with the courts to recover your money. If we lose the trial, we will have to reimburse the credit (capital and interest), pay the surcharges for the delay and pay the legal expenses (lawyers, fees …).
If after this process we do not have sufficient capital to pay the debt, the good or goods placed as collateral may be seized to pay it off. For this reason, we always recommend not to contract a loan if we do not charge an income that allows us to pay the installments on time.