Guarantor Loan

Guarantor Loans

To be successfully given a loan can be a nightmare if you have a bad credit history. Well, if you fall into that category, there is a better option for you, which is a guarantor loan.

Guarantor loans involve getting someone who is ready to pay your debts back in case you are not able to pay back. This in a way assures your lender, because it provides security to the lender who is taking the risk. A guarantor loan is more flexible and easy to get

Steps To Take

Before opting for a guarantor loan, a guarantor should be the first thing to look for. The guarantor can either be a family member or a friend who trust you and who s ready to make your repayments in case you are unable to meet your repayment. Your guarantor must not be financially connected to you. Since its an unsecured loan involving a guarantor, your bad credit history won be considered

Criteria For Gurantor

• Be over 21-75 years
• A home owner (sometimes might be part of the requirement)
• Enough equity in your property
• Family/friend
• Credit history
• Employments records
• Bank statement
• Be financially independent of the borrower

Guarantors Obligation

• Co-signing the loan agreement with the borrower
• Receive the fund and pass it onto the borrower
• when repayment are not duly paid on time by the borrower, the lender works with them to get the borrower back on track, if they still are not able to meet up, the guarantor makes the repayment

Benefits

• A guarantor loan can help build a bad credit history, once the repayment is made on time every month, a good rating will be given to you. This makes you have greater advantage of getting standard unsecured loans, credit card, and mortgage without having to use a guarantor
• The interest for a guarantor loan is high but very cheap compared to pay day loan and other bank credit loan
• More money can be borrowed for longer period between £1000-£7500 for the period of 1-5 years