If you are looking to get a loan, there are plenty of options that you will want to look into. Guarantor loans can be very highly beneficial to a lot of people, so it’s a good idea to learn all you can about them. In this article we will provide you with some very useful facts about these loans that can help you make the right choice. You don’t want to get any type of loan before learning everything you can about your options.
A guarantor loan is a popular alternative to traditional bank loans. It requires you to find a guarantor, which is similar to a co-signer. This person agrees to take responsibility of your debt if you have problems paying back the money on time. You will be given a certain amount of time to pay back the money you borrow, just like with any other loan.
The Internet is the absolute best resource you have when it comes to obtaining a guarantor loan. It will allow you to fill out and submit your application within a matter of minutes. This is definitely the most convenient way to go about obtaining one of these loans. It will also provide you with the opportunity to compare lenders so you can choose the best one possible. This makes the process of getting the loan you need incredibly fast and efficient as a whole.
Bad credit guarantor loans have become outrageously popular in the UK because poor credit is not an issue for many applicants. Unlike most bank loans, your low credit rating won’t necessarily get in the way of being approved. Lenders who give out these loans are willing to let bad credit slide because of the other person or guarantor.
If you have had trouble getting approved for the loan you need, this could be the perfect solution. Even those with foreclosures or defaults on their credit report can be approved. This is definitely not something that can be said about most other types of loans.
When you are setting out to obtain one of these loans, it’s important to remember that you can’t have just anyone act as your guarantor. Lenders have strict requirements for guarantors, and it’s important to know what they are.
While the specific requirements vary from lender to lender, they generally include:
There are other criteria that lenders look at before approving someone as a guarantor on a loan. Both you and your guarantor need to be over the age of 18 and a legal UK citizen. This is a bare minimum requirement for obtaining any type of loan in the UK.
You should choose someone reliable who you are close to for the role of guarantor on your loan. This is usually a family member or close friend for most people. Take some time to find a person who you think the lender will approve based on the above listed criteria.
Guarantor loans allow you to borrow both smaller and larger amounts. Some lenders are willing to give out more than others, but it usually ranges from £1,000 to £10,000. You will have anywhere from a month to over a year to pay back the loan. The more money you borrow, the longer the term typically is. There are certain lenders that offer the same term regardless of the amount. It is usually a good amount of time, so you won’t have to worry about defaulting.
While it might be good to know that you have someone who will help you out if times get tough, you shouldn’t rely on your guarantor. There are still negative consequences for defaulting on this type of loan that you’ll have to face. Your credit will take a pretty big hit, which means a significantly lower overall score. The guarantor may be responsible for paying back the loan if you can’t, but that doesn’t mean you are entirely off the hook.
If you are going to have problems paying back your loan on time, call your lender right away. You should try to take care of the debt yourself before falling back on the guarantor. By doing this you will minimise the damage to your credit. Paying back your loan late is better than not paying it back at all. Your credit might still be negatively affected, but it is very important that you take care of your debt.
You shouldn’t have any issues with paying back your guarantor loan early if you are able to. Private lenders don’t usually charge early settlement fees, so you can potentially save yourself some money. We highly recommend that you try to pay back your loan as quickly as possible to avoid incurring more interest than you need to.
You’ll quickly learn that bad credit guarantor loans are known for having very low interest rates compared to other loans from private lending businesses. This makes repaying your loan much easier with a lower chance of defaulting. It is still a good idea to compare offers from a few different lenders though. This way you will know that you are getting the best possible deal. There is no point in paying more for your loan that you absolutely have to.
The sheer versatility of guarantor loans means that you can use them for whatever you might need. If you need cash to pay for college or even help finance a wedding, this is definitely an option to look into very carefully. No lender will ever require you to provide them with information pertaining to why you need the loan. This is something that you won’t get with loans from banks or credit unions.
One of the reasons that guarantor loans are so popular in the UK is because they disperse funds quickly to those who get approved. You can expect to receive your funds within 24 hours. In some cases you can get the money you need within an hour after approval. If you are in a position where time is important, this will be good to know. Once you are officially approved, the money gets electronically transferred into the guarantor’s account.
There are a few steps that you will need to follow when applying for a guarantor loan, including:
Applying for bad credit guarantor loans could be a very good decision, especially if you were turned down by your bank. If you need cash fast for any reason, these loans have many benefits to offer. They are among the cheapest privately given loans on the internet. Applying is very easy and can be done entirely online. The whole process of obtaining a guarantor loan typically takes a single business day. If you are in need of funds right now, you should keep this information in mind before deciding what to do.