The alternatives to payday loans – if you don’t have a good credit history or just have a bad credit history from past mistakes it can often be difficult to get a loan of any type, this could result in finding a loan in the first place or you may end up paying such a high rate that you will struggle to pay the initial loan back. A new type of loans has been introduced in the UK labeled “Guarantor Loans” where this allows you to take out a loan, where a second person acts as a guarantor.
We have created a quick and easy guide covering the most common questions regarding guarantor loans that our visitors have asked.
What is a guarantor loan?
Guarantor Loans are typical unsecured loans that require a 2nd person to act as a guarantor in case of financial difficulty’s, Loans can be over a terms of one to five years and you can borrow anywhere between £1,000 to £10,000. These loans are often an ideal solution for people with Bad Credit as the guarantor acts as a safety net for Loan providers.
The added benefits of Guarantor Loans are:
– Lower Interest Rate
– Usually no upfront fees
– No Arrangement Fees
– Alternative to Payday Loans
– Solution for Bad Credit History
Is a guarantor loan right for myself?
Guarantor loans could be the right choice for you if you have a bad credit history or been rejected by other lenders in the past. A guarantor loans also allows you to borrow a larger sum of money than you would normally be able to. It’s also possible to rebuild your credit history by demonstrating that you are able to make the repayments on time and that you are a responsible borrower.
How can I apply for a guarantor loan?
Like all loan applications you need to be over 18 years old and have a UK bank account where the repayments can be collected. You will need to show that you can afford to make the repayments and that you are able to pay the loan back in the time agreed with lender.
Who can act as a guarantor for myself?
It’s always important to check with each lender if they have any restrictions to who can act as a guarantor for yourself but for most lenders as long as they are not financially linked to yourself it can be anyone, A guarantor could be a friend, work colleague or even a family member they usually need to be over 21 years old and have a good credit history and also a UK home owner. Our review pages will state the requirements that each lender requires from the applicant.