If you do not have a very high credit score, you may have problems securing financing and loans. Fortunately, you may be able to get the funding you need by applying for a guarantor loan.
A guarantor loan is a type of loan that is considered an unsecured loan. It requires that the borrower has a guarantor, or a person who is willing to meet the repayment obligation if you are not able to. These loans are also referred to as co-signer loans.
Important Information – If you would like more information about this type of loan, please visit - http://www.guarantorloansuk.net
A guarantor loan is a type of loan that is considered an unsecured loan. It requires that the borrower has a guarantor, or a person who is willing to meet the repayment obligation if you are not able to. These loans are also referred to as co-signer loans.
Important Information – If you would like more information about this type of loan, please visit - http://www.guarantorloansuk.net
Since the global economic downturn, a lot of borrowers have less than perfect credit. As a result, guarantor loans have become an increasingly popular way for borrowers that do not have a great credit history.
There are a wide range of lenders that offer this type of financing. Borrowers can research to find the lender that is best suited to meet their needs.
There are a wide range of lenders that offer this type of financing. Borrowers can research to find the lender that is best suited to meet their needs.
How Do These Loans Work?
When a borrower applies for cheap guarantor loans, you must also supply the information of your guarantor who has agreed to repay the loan if you default on your loan agreement. This allows the lender the ability to offer the borrower the opportunity to get approved for a loan that has a lower interest rate than they would if they were approved for a traditional loan.
The guarantor is typically not involved in the repayment process, and will only be contacted after the lender has exhausted all other avenues to get repayment from the borrower.
The guarantor is typically not involved in the repayment process, and will only be contacted after the lender has exhausted all other avenues to get repayment from the borrower.
Who Is Eligible To Be A Guarantor?
Borrowers usually ask friends or family members to act as guarantors for these types of loans. However, a guarantor can be anyone who trusts you enough to believe you will meet your repayment obligations.
Although they can be related to you, the guarantor cannot be anyone who has a financial link with you. For example, a spouse could not be a guarantor for his or her spouse.
Guarantors must also be at least 21 years old, and they must have a good credit score. Their credit will be checked, so they will need to provide the lender with their personal information such as:
• Their identification
• Their banking information
• Their employment status/income
• Their address
• Their phone number
In certain countries such as the United Kingdom, the guarantor must also be a homeowner. This is because some lenders require security or collateral, and the guarantor must have equity that is equalled to the loan’s value.
Although they can be related to you, the guarantor cannot be anyone who has a financial link with you. For example, a spouse could not be a guarantor for his or her spouse.
Guarantors must also be at least 21 years old, and they must have a good credit score. Their credit will be checked, so they will need to provide the lender with their personal information such as:
• Their identification
• Their banking information
• Their employment status/income
• Their address
• Their phone number
In certain countries such as the United Kingdom, the guarantor must also be a homeowner. This is because some lenders require security or collateral, and the guarantor must have equity that is equalled to the loan’s value.
Borrowing With Less Than Good Credit
Guarantor loans target those with bad credit. They can be a great alternative for borrowers who have been turned down by traditional lenders. Having a guarantor that believes in you can not only allow you to borrow at lower rates, but you will also have an easier time repaying back the debt.
Many times borrowers are able to get approved for higher loan amounts than they would from other lending sources like payday lenders and credit unions. Although guarantor loans have lower interest rates than payday loans, the interest rates are still expensive.
Compare lenders when you are looking for a guarantor loan. By making your payments on time, you can rebuild your credit and improve your score.
You can find out more about rebuilding credit ratings by visiting the following link - http://www.which.co.uk/money/credit-cards-and-loans/guides/your-credit-report-explained/what-is-a-credit-report-/
Many times borrowers are able to get approved for higher loan amounts than they would from other lending sources like payday lenders and credit unions. Although guarantor loans have lower interest rates than payday loans, the interest rates are still expensive.
Compare lenders when you are looking for a guarantor loan. By making your payments on time, you can rebuild your credit and improve your score.
You can find out more about rebuilding credit ratings by visiting the following link - http://www.which.co.uk/money/credit-cards-and-loans/guides/your-credit-report-explained/what-is-a-credit-report-/