What are Guarantor Loans?
Getting a loan can be very difficult especially when you have had past issues before when it comes to loan. One example is when you do have a bad credit that can hinder you to getting a good loan once again. It will be difficult for you to get one again or worse, you may get some debt issues from which you will have high interest rates that you cannot afford to pay. But, through the new guarantor loan, you can still be able to get a loan. This guarantor loan is available in the United Kingdom.
First, you should need to learn what a guarantor loan means. Guarantor loan means using another person to act as a guarantor. This loan is an unsecured loan. Through the use of guarantor loans, you can borrow from £1,000 to £7,500. This kind of loan can have terms of over one to five years. This guarantor loan could be really helpful to you especially when you have had bad experiences in credits in the past therefore it is hard for you to get another loan.
Also, when using this kind of loan, the interest rate is much lower and you do not need to have any other fees such as arrangement fees because it is not necessary. Guarantor loans could really help you when you need it urgently because this would get you to obtain a loan using a second person. Also, people resort to guarantor loans because other kinds of loans may have rejected them because of their bad credit background. Aside from that, guarantor loan also offers you the deal to be able to borrow a higher sum of loan than you can do with other kinds of loans that target a different market.
To get a guarantor loan is very easy. Just like getting an ordinary loan, you need to be able to be older than eighteen years of age and you should also have a UK bank account because guarantor loan is available in the said country. In your UK bank account that is where your repayments will be done and accumulated. However, when getting the help of a guarantor loan, you still need to be able to show them that you are able to pay the repayments and that you are capable to pay back the loans when you need them regularly.
When it comes to the guarantor itself, you can choose whoever you want as long as you do not have financial relation with him or her. An example of that would be your spouse. But still, you can have your guarantor be a part of your family, a good friend, your neighbours even, and also your workmate. Also, for your guarantor to be accepted, he or she needs to be over 21 years old and has good credit history, and also a UK citizen or homeowner. Your guarantor also needs the same requirement as you are to be able to be recognised to be a guarantor.