Looking for a reliable form of financing? There are certainly plenty of options that you can consider. If you are looking to secure large borrowing amounts with flexible payment terms and competitive interest rates even if you have an inadequate credit score. Then guarantor loans are a great financial option that you can look into.
What are Guarantor Loans?
It is a loan you can get, but only if you have somebody who agrees to be your guarantor. They’ll need to sign the agreement alongside you. This is a person who will “vouch” for you and basically agree to make the repayments if yours bounce. Or if you are unable to make them for another reason. This person will obviously need to be somebody you trust and who also trusts you because it is a very big responsibility. Your guarantor will need to fit certain criteria in order to be your co-signer for the loan.
Who can be a Guarantor?
To be a guarantor, here are some essential criteria:
- the person has to be living in the UK
- have a good credit rating
- be in employment
- sometimes a homeowner
There are some loan companies out there who are not as strict on the homeowner part but again, this will vary depending on what provider you go with. Family members can be your guarantor but spouses/partners can not because they share a financial record with you.
Will the Guarantor ever be contacted?
Providing you make your repayments as agreed, they will not be contacted in any way except to confirm they are agreeing to the initial loan and all the information is correct. It will still be your loan, your guarantor will simply be a sponsor of sorts if anything does happen and you do not stick to your agreement with the loan provider.
How to apply for a Guarantor Loan?
You can apply for this type of loan online, which means no paperwork and not too much of your time will be taken up. You will be asked some basic questions to confirm your identity, the amount you need and the details of the guarantor will also need to be put in, as they are co-signing the agreement. A decision will then be made and if approved, the funds will be in your bank ASAP, often the very same day.