10 great reasons to use a loan guarantor
A loan guarantor is someone who puts themselves forward to back up the loan application of someone else. So in other words, Applicant A applies for a loan and receives the loan amount and also makes the monthly repayment. The guarantor simply ensures that if the monthly payment isn’t made or the applicant doesn’t repay the loan that he or she will, effectively guaranteeing the loan to be repaid, hence a ‘guarantor loan’. Here we will look at 10 great reasons why you should consider a guarantor loan.
1. You have a bad credit history or a history of poor credit.
2. You are receiving benefits
3. You are a student who does not have a part time job (if you are a student who is working then you will have no problems getting a loan)
4. You are unemployed and obviously not receiving what is known as earned income. Unemployment benefit is unearned income.
5. You are not old enough to qualify for a loan (some lenders insist you need to be 21 years of age to qualify)
6. You want to repair your credit history.
7. You do not have any credit history at all (this is a problem for people who have never taken any credit before and can be as problematic as having a poor credit history.
8. You are a tenant and do not own your own property.
9. You are a foreign national who does not have any credit history or is unable to obtain any credit due to not being in the UK long enough.
10. You simply do not want anymore credit searches to show up on your record.
As you can see, there are a number of good reasons why you should consider a guarantor loan and there is no longer any stigma attached to getting a loan with a guarantor.
