How they work
How Guarantor Loans Work
Guarantor loans are one of the top choices of people when it comes to getting a loan. This is because a guarantor loan, compared to other kinds of loans, is intended to be used by people who have bad credit. This loan is made for people who have bad credit rating or non- existing credit rating. What is great with guarantor loans is that it involves an easy and fast transaction which will let you get your money in just a short span of time. With Guarantor loans, you can surely get the advantage that you need compared to other kinds of loans.
Guarantor loans are easy to understand. This is an unsecured kind of loan, which means that you do not need any collateral. You just need a guarantor, who is the third party needed to be able to get your loan approved. The guarantor will be the person you need as a backup in case you default on your repayments. This guarantor will be the one to co- sign the agreement that you need for your loan. A guarantor can be anyone you know, whether you want it to be your friend, workmate, or even a family member. However when it comes to family members, not all lending companies want someone to act as a guarantor if the person has a financial relation with the borrower.
You should ask the company immediately if they can allow the guarantor to be a spouse. The guarantor is one of the primary requirements needed to get your loan application processed. The other requirements needed are the borrower must be at least 21 years of age, and a UK resident. The borrower does not need to have a good credit rating. However the guarantor must have a good credit rating in order to be considered to be a guarantor. Our company will be the one to check all the bank details needed to know about the credit rating of your chosen guarantor.
Once it passes our standards, then the guarantor can be considered for the position. Although getting a guarantor is a huge advantage to having your loan application approved, you must always bear in mind that you are using the help of a guarantor. Therefore you must do all your repayments diligently so that your guarantor will not be put into a bad situation, by having to repay all your defaulted repayments. If you do not make your repayments on time, it will affect your guarantor because he/ she will be the one to be contacted in case you do not solve the problem when you are asked to report. Also, there may be a case that the guarantor’s good credit rating will be affected as well by your negligence when it comes to your loans.
Guarantor loans are paid through monthly repayments, with a fixed interest rate and fixed term to pay. Usually, you can borrow £1,000 to £10,000 which can be paid for as long as 1 to 5 years. See other details about our guarantor loans within our website for more information.