Bad Credit Guarantor Loans

Get between £50 - £5,000 paid out by

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  • 100% Online Process

  • Borrow up to £5,000

  • UK Based Lenders

  • Bad Credit Accepted

  • 2 Minute Application

  • Same Day Transfer

  • Representative Example: Rates from 35.9% APR to max 1304% APR. Minimum Loan Length is 3 months. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 3 months. Total amount repayable is £411.63 in 3 monthly instalments of £137.21. Interest charged is £161.63, annual interest rate of 292% (fixed). Representative 1192% APR (variable). *HappyPenguin will not perform a credit check but lenders will determine your loan eligibility by performing a soft search. If you accept the loan offer presented to you, a hard credit search will be performed.

    Useful Facts and Tips for Bad Credit Guarantor Loans

    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.

    How Guarantor Loans Work

    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.

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    Guarantor Loans are Available Online

    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.

    It’s a Great Borrowing Option for People with Bad Credit

    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.

    There Are Strict Requirements for Guarantors

    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:

    • Good credit score: The person who serves as the guarantor on your loan needs to have a good credit score. Their credit report doesn’t have to be immaculate, but it should be considered “good” by most lenders’ standards.
    • Adequate income: Your guarantor will also need to show the lender proof of their income. They have to make enough to cover the total amount of your loan if necessary. This is also going to be a requirement for you, so keep that in mind.
    • Stable job history: The employment history of this person is yet another factor the lender will take into consideration. If they have been at the same job for a while now, they will most likely be viewed as dependable.

    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.

    How Does Happy Penguin Compare?

    Why Use HP?
    What's the max loan amount?
    Up to £5,000
    No hidden fees.
    Is approval instant?
    Yes, immediate.
    On Screen Decision
    Poor Credit Possible?
    Yes. Bad credit too.
    All considered.
    Same day transfer?
    Within the hour!
    Direct to bank!
    Flexible Repayment Dates?
    Flexible terms.
    Quick and easy.

    Loans of All Sizes Are Available

    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.

    Don’t Rely on the Guarantor to Pay Back Your Loan

    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 Can Pay Back Your Loan Early

    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.

    The Interest Rates Are Highly Competitive

    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.

    A Versatile Borrowing Solution

    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.

    You Can Get Your Money Fast

    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.

    The Application Process

    There are a few steps that you will need to follow when applying for a guarantor loan, including:

    • Select the amount: First you will be asked how much you want to borrow. You’ll need to give an exact figure, so you should determine this in advance. Never borrow more than what you need.
    • Submit personal details: Next you will be asked to submit some personal information, including your full name and contact details.
    • Nominate the guarantor: You’ll also have to submit information on your guarantor so the lender can make an informed decision.
    • Wait for a response: Once you have completed the previous steps, you will just have to wait for a response from the lender. They will give you a call to go through your application. At this stage the lender will want to know how much you make and other details to make a final decision on your application.
    • Finalising the loan: If you get approved for the loan, the lender will call you up again to go through all of the final details. They will also perform a full credit check before finalising the loan.

    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.

    Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk. Happy Penguin is a broker, not a lender, and does not make credit decisions.