Guarantor loans have become very popular among people with bad credit for a number of reasons, and it’s a borrowing option that you should at least explore before making a decision. This type of loan could help you to get the money you need quickly and easily. A lot of people don’t really know a whole lot about these loans, but it’s important to educate yourself before making a decision. The more time you take to learn about these loans and what they have to offer, the more likely you will be to apply for one.
A guarantor loan is basically just a loan you get with someone else signing on to agree to pay back the rest if you are not able to. The standards for the guarantor can be fairly high, as they need to have a solid credit rating/history and adequate income. Some people have difficulty finding someone to act as their guarantor, while others are able to get one without any issues. If you are unable to continue making payments on your loan, the guarantor will be required to take over.
They Are Easy to Get
Perhaps the best thing about guarantor loans is the fact that they are so incredibly easy to get, even for those with very low credit scores. As long as you have someone who can meet all of the necessary requirements, you should be able to get the loan you need. The lender will still take a close look at your income, employment history and other things though. These loans are typically much easier to get approved for, and they have become a very popular option for those with bad credit in the UK because of this.
You Can Get Your Loan Online
These days it is possible to get the loan you need with nothing more than a computer and internet connection. You can apply for your loan online and wait to hear back from the lender via phone or email. This makes the whole process of getting a loan much easier and less stressful. You will be required to fill out an application with personal information to give the lender a better idea as to how much of a liability you are going to be. You must submit only truthful information in your application, because otherwise it will be rejected for sure.
A vast majority of people who get approved for a guarantor loan receive their funds within 1-2 business days of getting approved. After all of the necessary documents have been submitted and you and the guarantor sign the contract given by the lender, you will receive your money. This is definitely one of the faster ways to borrow a significant amount of money in a relatively short period of time. A lot of people who submit an online application for a guarantor loan hear back from the lender within about 24 hours.
Guarantor loans also tend to offer longer terms to those who need to borrow money. This means that you will have a long period of time to pay off the money you borrow. The length of your loan term will depend on the amount of money you borrow, so you will need to keep that in mind. Most lenders are pretty flexible when it comes to coming up with a reasonable term so you will be able to pay back the money you borrow without any issues.
Anyone who takes out a loan of any kind wants to get the lowest possible rate. Guarantor loans generally offer fairly low rates, so you won’t have to worry about paying a ridiculous amount of money for the loan you need. This is something that can be particularly beneficial to those with bad credit. Most people do not consider just how much extra they are paying with a high interest rate, so you will need to keep this type of loan in mind before going with a certain option. The lower your rate is, the easier it will be for you to pay back your loan on time.
Choosing a Lender
If you are interested in getting a guarantor loan, you will need to make a point of looking for the right lender. There are plenty of private lenders who can help you out, but not all of them are the same when it comes to their standards for those who apply. When you take enough time to research your lender options, you will be able to get an excellent overall deal. Keep in mind that the lender you choose will be responsible for determining your interest rate as well as the overall terms and conditions of the loan.
There aren’t nearly as many limitations with guarantor loans as there are with others. You will never be asked by any of these lenders as to what you plan on spending the money you borrow on. A lot of banks will require you to give them a reason for borrowing the money, but this isn’t the case here. Lenders also tend to be a lot more flexible when it comes to giving longer terms and even extensions when needed. This will ultimately work in your favour when it comes to paying back your loan on time.
Should You Get a Guarantor Loan?
You will need to consider a few different things before deciding whether or not to get a guarantor loan, such as the state of your credit. If you have bad credit and have been rejected by banks for a loan in the past, this could be the right option for you. Even those who have good credit might want to think about getting a guarantor loan first, simply because there are lower rates and more flexible terms. While you might have to spend some time finding the right person to act as your guarantor, it will be well worth it in the end.