Guarantor Loans 2019-09-11T11:58:50+00:00

GUARANTOR LOANS

What Is A Guarantor Loan?

If you find your struggling to secure a loan, Guarantor Loans prove to be a popular option.  With the help of a family member or friend they guarantee your loan with the lender meaning they will cover any payments you may be unable to make.

If you have a poor, or no credit history Guarantor Loans can be a great option.  They give you the opportunity to build you r credit rating and develop your credit score, provided of course you keep up with your repayments.

FAQ’s

A guarantor is vouching for you to make the repayments on your loan.  They are effectively promising to make the payments if you fail to.

If you have poor credit and been rejected by other lenders Guarantor Loans can give you the chance to access the amount you need.  As with all forms of credit they give you the chance to build your credit score to make it easier to access loans and credit cards in the future.

Guarantor Loans can have a higher rate of APR than Personal Loans or Secured Loans, becuase they are generally a route people with poor credit will go down.  If you fail to keep on top of the repayments this will mean the lender will go to the person who has acted as guarantor which could sully the relationship you have with them.

Always choose someone you trust to act as your guarantor.  They need to be someone your happy to discuss your finances with.  Which is why the best cnadidates are usually family members or close friends.

Guarantors need a good credit history and must be over 21 years old, and they usually need to be homeowners.  As part of the application process, guarantors will need to undergo a credit check, and provide bank details, proof of ID, and bank statements.

How Do They Work?

Guarantor Loans are exactly the same as any other loan.  You borrow money from a lender, over an agreed term with agreed repayment amounts.  The only thing that’s different is that if you fail to make the agreed payments the lender will go to your guarantor for the money you have failed to pay.