Guarantor Loans could help you to secure the finance you need
People with bad credit scores and poor credit history may suffer
when it comes to the point they need to cover a major purchase or there is a sudden expense. Those people end up struggling and paying high interest rates that can be unaffordable and thus may turn into a serious debt problem. For those that may be wary of taking loans due to their bad credit rating, a Guarantor loan could help you to secure the finance that you need. A guarantor loan allows you to take out a loan where another person acts as a guarantor, which means that should you be unable to repay the loan, the guarantor will take over responsibly for the debt and ensure that its paid.
Guarantor loans are usually repaid over one to five years,
allowing an individual to borrow anywhere between £1,000 and £7,500. This might be a suitable go-to for people with bad credit because their choices are limited when it comes to borrowing, and if they are successful in gaining a bad credit loan, they will have to pay the high interest rates that come with them. Unlike payday loans, guarantor loans has no upfront fees nor arrangement fees. Also, they have lower interest rates than payday loans.
If you have applied for loans and you were rejected
because you have a bad credit history the a guarantor loan maybe a suitable option for you. In terms of criteria, you must be over 18 years old and second, you should have a bank account local to UK where the repayments can be collected. As simple as it sounds, you should still show the lender and the guarantor that you can make and meet repayments on time.
Anyone can act as a guarantor as long as they are not financially linked to you.
This could be a family member, a close friend, or a work colleague can act as guarantor for you. You should be reminded that in order for them to be accepted as a guarantor, they should be over 21 years old and with a good credit history and also a home owner. Also bare in mind that the credit checks that your guarantor will be identical and similar with the traditional credit checks. They will have to provide bank statements, bank details and proof of ID.
A guarantor loan can allow you to borrow a lump sum of cash,
it is also possible that you rebuild your credit history by demonstrating that you can handle and manage your finances responsibly by ensuring you make the repayments on time.