A Short History of Unsecured Guaranteed Personal Loans

The Internet is full of articles about unsecured payday loans. We hear about how this is what puts modern consumers and borrowers at great risk, but the truth is that loans with high interest are not something new. They have been around for quite some time. There might be some differences in the form and the process, but it is basically the same.

The Early Years

More than a century ago, the modern means of getting cash were not available. Workers and ordinary people borrowed money from friends or relatives. The sad fact is that the others were just short of cash as they were.

Salary Lenders

Underground salary lenders came into existence to fill the need for quick cash. They offered fast short term loans with annual interest rates that could be anywhere from 100% to 500%. The terms usually lasted until the next pay day of the borrower. The failure to make payments on the agreed date meant harassment and sometimes loss of job.


Though some laws had been passed which curtailed the practice of cash advance companies, other changes were soon made that allowed some lenders as we know them to operate in the present form. They can charge interest rates on unsecured guaranteed personal loans that are very high and they do so because they lend money to high risk individuals.

Current Practice

Now the payday lending companies have changed with the times and they have adopted the way that they operate in order to match the current needs of the consumers that they are serving. Here are some of the current practices used by online payday companies today.

No Credit Check

Because most of the potential borrowers of legitimate cash advance lenders no longer require any credit check when you apply for guaranteed personal loans. So even if a borrower has a very low credit score, they might still be able to get the money that they require.

Fast and Easy Application

Cash advance lenders attract a great number of borrowers towards their services by offering a quick application system. They know that most of those who would turn to unsecured guaranteed personal loans are in need of cash quickly so they offer same day processing. There are even some companies that offer one hour or even less than that.

No Documents

Another major attraction that guaranteed personal loans hold for a lot of people is the fact that no documents are required to be submitted. Short term payday companies would ask for no faxing, no checks to be issued and no teletrack. That makes it a really easy means of getting unsecured loans that you need.

The Risks

Despite the modern changes, the fact remains that unsecured guaranteed personal loans are still very high risk. The easy way to apply for it only increases the risk that people who are having difficult times financially would get into more trouble.