Guarantor Loans: Everything You Need To Know

It’s a new way of borrowing that has become much popular in the UK recently. Guarantor loans are easy to get and you can even get the loan within a day after application. Companies such as in offer guarantor loans. If you need to raise some money quickly in the UK, then the guarantor loans are the way to go. In the situation that you have a bad credit score of having turned down other lenders, the guarantor loan can be a savior.

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This is what you need to know about guarantor loans:

  • Guarantor loans are regulated by the Financial Conduct Authority (FCA). The authority works toward making sure that everyone is involved by offering affordable loans with affordable rates. If you don’t have legitimate ways of repaying back the loan it will not be approved.
  • Guarantor loans are different from other loans because you will be asked for a guarantor. Other types of loans do not require you to offer a guarantor. The guarantor is there to add some support for the security level to ascertain the lender that you will be able to repay the loan.
  • The loan is very much affordable. In fact, it is one of the last chances for almost everyone; those with bad credit and those without collateral as well as those who are not accepted by other lenders for various reasons.
  • Both the borrower and guarantor must understand the terms before applying for the loan. You must be able to make the required repayments and if you fail, your guarantor will be accountable.
  • Guarantor loans are applied online by filling an online form. It takes a minimal time to fill the form and you loan gets approved within few hours. In fact, those with good credits can get a loan within five minutes. You are supposed to shop around and get those lenders with best deals. Try here
  • Unlike other lenders such as banks, guarantor loans are available most of the time. Banks usually close on public holidays but guarantor loan lenders are available most of the time. This makes a guarantor loan preferable in the case of an emergency during the days that the banks and other lenders are closed.
  • Annual percentage rates (APR) is a rate applied to calculate the interest rate of guarantor loans. The interest rates are calculated using an annual percentage. Interest rates for a guarantor loan are relatively higher compared to that of other lending companies. Lenders are offering a free calculator to borrowers in order to help them make a decision.
  • Failure to repay a guarantor loan, both you and the guarantor can be taken to court and your credit score will be ruined. It is, therefore, advisable to repay your loan promptly to avoid all these.

Finally, guarantor loans are the better and good options to access credits on the go. If you have a good credit history, you will get the loan fast of up to 35000 Euros. If you have bad credit, you just require a guarantor to stand on your behalf so that you will qualify to get a loan.