Guarantor & unsecured loans roundup
What is a guarantor?
A guarantor is someone who agrees to sign an agreement or contract (usually on behalf of someone looking for a loan or mortgage) that means they will step in and guarantee to repay the loan, mortgage or other debt if the borrower cannot.
Usually, a guarantor will be suitable for young people such as students who are struggling to get accepted for a loan anywhere else.
A guarantor loan
A guarantor loan is becoming one of the most popular finance products in the market today and allows anyone seeking credit to apply for a loan, even if they have been refused elsewhere or have a bad credit history.
So what is a guarantor?
A guarantor is a person who has agreed to guarantee the repayment of a loan, should the borrower not be able to repay it for whatever reason. It could be a case of the borrower not being able to repay the finance because they may have lost their job or they simply cannot keep up with the repayments because they have over extended themselves financially. However it can also be because they simply do not wish to repay the loan…either way (and it doesn’t really matter what the reason is) the guarantor will become responsible for the outstanding debt which is why guarantor loans are sometimes known as guarantee loans, because the lender knows that their loan will always be repaid whenever a a guarantor is being used.
This is even more relevant during the credit cruch because every bank and lender that offers credit and finance, needs to be 100% certain that they will get back any money that they lend to their customers and this form of loan guarantee gives financial firms comfort that their loans will be repaid on time every time. One thing to point out is that all guarantor loans are…
Unsecured loans
An unsecured loan means that the finance is not secured against property, hence the term, unsecured. Unsecured loans come in many forms that you are probably quite familiar with such as payday loans, logbook loans, tenant loans, car finance, etc an they are one of the most popular forms of credit available today as the application process is simple and quick and allows anyone to apply for a loan, regardless of whether they are homeowners or tenants.
To find out more about our guarantor loans, just get in touch today via our simple, 30 second loan enquiry form and we will do the rest.
Guarantor loans boom from anytypeofloan.co.uk
Guarantor loans provider anytypeofloan has reported a 40% increase in new enquires since the World Cup began.
Usually, loan enquiries reduce during the period of a major event such as the Olympics or World Cup but the reality this time is somewhat different as enquiries have actually increased for anytypeofloan.co.uk since the start of this major football event.
Anytypeofloan.co.uk work with a lender who can provide guarantor loans to individuals and in some cases, can even offer unemployed applicants a loan as long as they have a guarantor who is at least 21, a homeowner and with a fairly decent credit history.
Paula Harrison, Director of anytypeofloan.co.uk commented: “There appear to be a number of new entrants into the guarantor loans market and I am sure there will be more. We have been providing guarantor loans since 2008 and have built up a great reputation in this market as people know that we will never charge them a fee. Even though the OFT decided not to impose any restrictions on what interest rates short term lenders and loan companies can charge, we believe that the customer still pays enough for a guarantor loan which is why we are committed to never charging fees.”
Guarantor loans could be the answer
Guarantor Loans
Guarantor loans may not be the answer to everyone but they can certainly solve a lot of the problems that people come up against when looking for a secured or unsecured loan.
The first thing to consider is that guarantor loans have a pretty shoddy reputation, helped unfortunately by some rather unscrupulous firms who don’t always seem to have their customers best interests at heart. Here at anytypeofloan.co.uk we treat all of our clients with respect and always maintain a clear, transparent policy. It is this care for our clients best interests that makes us stand out as the foremost unsecured loan specialists in the UK and we have a solution for you no matter what your credit history is like.
So even if you have missed payments on your credit card before or have missed a few mortgage payments or have a default or CCJ, we can help you. Getting a guarantor loan is one of the more simpler loans to obtain because we are effectively giving you the loan but we will base our decision on your guarantor, ie. the friend, relative or colleague who is supporting your application. For the guarantor themselves, things couldn’t be easier because they will not be paying the loan back, the applicant will so the the only real thing that they have to take into consideration is this:
Do you trust your friend, colleague or relative to pay the loan back, regardless of what happens to their personal circumstances? If the answer is yes and you fully understand your obligations then a guarantor loan could be agreed within just a few hours.
Unsecured no credit check guarantor loans
Phew, what a mouthful! I know it sounds a little long winded but it has to be to explain exactly what a guarantor loan can do for you. This type of loan is not like any other unsecured loan product that you may have come across as it has been designed specifically for UK borrowers who have little or no chance of getting a loan from a bank, building society or one of the other well known high street loan providers.
The fantastic thing about a guarantor loan from anytypeofloan.co.uk is that we understand that not everyone will fit into the box of being a “good credit risk”. This doesn’t mean that you are unreliable or cannot be bothered to repay your debts, it can simply be the case that you did indeed incur debts a few years ago and subsequently got yourself a County Court Judgement (CCJ), default or a slap on the wrist for a few late credit card payments.
The important thing to remember here and the pertinent phrase is, “a few years ago”. Haven’t all of us experienced some cash difficulties at some point whether that is because of the loss of a job, relationship break up or some other reason that impacts on income. The point is that people need the means to get themselves back on their feet and in our opinion, it is grossly unfair to suggest that because someone had money problems 3 years ago, it means that they are likely to still be a risk and pay the lender back.
anytypeofloan.co.uk fastrack guarantor loans
We allow anyone with a poor credit history, even people with a number of CCJs, defaults or rent arrears to borrow up to £5000. We can also help students, part time workers, contract workers, temporary workers, housewives and even the unemployed because there is no credit score to pass and no credit checks will take place. Why you may ask?
Well, because with a guarantor loan, all of the references, credit checks and other such lender requirements are done on the person who is endorsing or ‘supporting your application. This person is known as the guarantor. The guarantor you choose is exactly that, a person that you think will support your application and don’t worry if you think that you don’t know someone who can do this for you because a guarantor doesn’t have to be a family member or a friend. Your loan guarantor can be anyone such as a neighbour, work colleague or even your boss! As long as the guarantor agrees to the terms and conditions of the loan then it can be absolutely anyone as long as the meet the following criteria:
• • They must be at least 21 years of age
• • They must be a homeowner
• • They must have a fairly decent credit history
Now the first two are pretty easy to satisfy but the last point (about having a decent credit history) is a tough one because it is unlikely that you will know if they have a good, bad or indifferent credit history. The way we look at it is like this: If someone is in full time work and a homeowner, then there is an 80% chance that we will accept them as the guarantor for your loan. Of course there will be instances where we cannot accept them but to you the borrower, you are not going to know this until you submit your loan application to us. However we can promise that we will respect you and your guarantors privacy so if there is a possibility that we have to decline your application, the only people that will know about it are you and your guarantor.
However, if we accept your loan application then you will be fastracked so that we can get your loan paid into your account as fast as we possibly can and remember, we don’t need to know what you are going to use the cash for, as long as it is legal and above board then you can do with it whatever you want to do such as pay off some outstanding debts, get rid of your rent arrears, buy a car, go on holiday, the list of things to do with your loan is endless but it is your decision and yours alone.
The first time you apply for a guarantor loan from anytypeofloan.co.uk you will be restricted to £3000. Once you have made at least half of your payments though (and you have not been late paying your loan back every month) then we can top your loan up to £5000 if you wish. So, once you have paid us the loan back, if you want to apply for another loan then you can then apply for £5000 straight off without having to take the reduced amount.
We will pay the money straight into your bank account and each month the repayment will be taken from your bank account via direct debit. The great thing is that your guarantor will not have to do anything and the only time they will become involved is if there is a problem with the applicant repaying the loan and it is important for the guarantor to understand what their responsibilities will be if this does indeed happen. The guarantor is effectively saying that by agreeing to ‘endorse’ or ‘guarantee’ the applicants loan application, they will ultimately be responsible for the repayment of the loan if the applicant cannot or will not repay the loan. This of course means that if the applicant doesn’t make the loan repayments each month,(for whatever reason) then the guarantor will have to, so you can see that it is important from the guarantors perspective that they only agree to do this if they are absolutely certain that the applicant will repay their loan on time every time each month.
So if you have a poor credit profile and are have had the obligatory “NO” from every lender you have spoken to, then why not apply for a guarantor loan with anytypeofloan.co.uk, the company that is number 1 on Google for the term Guarantor Loans.
Do I qualify for a guarantor loan?
There does appear to be some confusion regarding guarantor loans and who can apply for them and who qualifies as a guarantor. Here at www.anytypeofloan.co.uk we will explain in details exactly how the whole process works.
What is a guarantor loan?
A guarantor loan is an unsecured loan which means that a lender is effectively lending someone the cash without having any security against that loan. That means that the borrower does not have a house to put up against the loan. Why should this matter you may ask yourself? Well, it means that if the borrower of an unsecured loan is unable to pay the loan back (or doesn’t want to repay the loan) then the lender is going to find it very difficult to get this money back from the borrower. Yes, they could take them to court and apply a county court judgement against the borrower but it still does not mean that the lender will get repaid.
If this was secured loan then a lender has the option of applying to repossess the borrowers property and whilst this is a pretty drastic option, it does at least allow the lender an opportunity to get their money back (including all costs as well)
However, most young people do not have a property so they apply for unsecured credit. Now the other major problem with an unsecured loan is that because it is more risky for the bank to lend, it means that they will make the application criteria much more stringent than they would for a secured loan. The result of this is that many borrowers will simply be declined by the lender because they may have bad credit, maybe they are unemployed or a student or housewife. Whatever the reason, it will be extremely difficult to get a loan, even if it is just £2000.
That is where a guarantor loan comes in.
A guarantor loan means that the borrower will enlist the help of someone they know to ‘endorse’ the application. What this means is that the borrower in their own right would be refused or declined, perhaps because of the reasons we stated earlier such as bad credit or not working. However, by enlisting the help of a guarantor, the application is receiving the turbo boost of someone with a decent credit history telling the lender that actually, the borrower is a decent person to lend to because I am guaranteeing the application.
What does guaranteeing an application mean?
It means that the guarantor is saying that if for some reason the borrower is unable to make the payments on a loan, then the guarantor will step in and ensure the loan is repaid, thereby guaranteeing the loan.
Who can be a guarantor?
The guarantor can be someone you know but then again, they don’t have to be that close to you. You could ask your boss or another work colleague if you wish. A bit more closer to home you could ask a member of your family such as mum or dad, brothers or sisters or even a distant relative. If you are still struggling you could even ask a neighbour.
What is the criteria for qualifying as a guarantor?
As long as the guarantor is 21 or over, a homeowner and has a pretty decent credit history then there is a very good chance that they meet the criteria needed.
And finally?
Remember this: the loan is assessed on the guarantor, not the borrower so there will be no credit checks or credit scores for the borrower to undertake. All references and lender checks are done on the person guaranteeing the loan, not the borrower which is why the acceptance rate for all guarantor loan applications with us is in the region of 92%.
Guarantor loans for students
Leaving University is a time to rejoice for most students as it means they can finally put all of the knowledge they have gained to good use and start a new career in a field that they love. But what happens if you have built up extensive debts and let’s face it, unless you are fortunate enough to have wealthy parents who have paid for all of your student / university expenses, you will probably have a debt that will run into the high 4 figures at the very least.
This debt could prevent students from buying a property or even renting a property simply because the repayment on the debt is too onerous that it leaves nothing in the account each month, even if that student is working. Now in the recent past that would not have been a problem. A graduate could simply apply to the local bank and obtain a loan at decent rates and arrange a repayment period over a longer than usual period (to keep the repayments down) so that it becomes affordable. Unfortunately, those days are gone…
How can a guarantor loan help?
Guarantor loans can help because they effectively ignore the credit history of the individual making the loan application. That means that if a graduate has just left university with say, £7k in debts and is desperate to pay it back but they can’t because they are trying to save up for a deposit on a new rented flat (phew! Life is tough for graduates!) then there is an opportunity for graduates to take out a loan but with a guarantor. This means that the guarantor (the person ‘endorsing’ the application and confirming that they are good for the repayment each month) will be the one who is credit checked, not the ex-student or graduate. The graduate will still receive the cash and they will still be the one making the repayments each month, the only difference being is that if the graduate cannot repay the loan for any reason, then that is where the guarantor steps in.
The other fantastic thing about guarantor loans is that they allow lenders to take on a little more risk. This means that if the person applying for the loan has a little bit of adverse credit such as a few late or missed payments and maybe a couple of defaults, then most guarantor loan lenders would be ok with this as they have a pretty good chance of getting their money back simply because the loan comes with a guarantor.
So instead of a traditional loan where a student or graduate may get declined, try the new option of a guarantor loan instead.
Bad credit guarantor loans
Do you know that you can still get a loan even if you have bad credit? Or if you have been turned down for a loan by another lender? Or even if you are not working?
Of course the credit crunch has made banks and other finance lenders more wary and this has made applying for a loan even more difficult which is why the majority of people applying for loans in 2010 get refused. And to make matters worse, people who would normally have been accepted a few years ago are now also getting declined because lenders have made the criteria for applying for a loan much more difficult than it used to be.
In simple terms, even people with a fairly respectable credit history are now unable to get a loan.
Or they were until the introduction of guarantor loans. A guarantor loan allows anyone with a bad credit history to borrow up to £5000 without any credit checks at all. It doesn’t matter even if you work part time or are a housewife, a guarantor loans ias available to anyone in the UK who can provide us with a guarantor, ie, someone who is over 21, a homeowner and with a fairly ok credit history (certainly no CCJs or defaults)
Guarantor loans low APR
What is APR?
The Annual Percentage Rate (APR) includes important factors such as:
• the interest rate you must pay on the loan;
• how you repay the loan; the length of the loan agreement (or term); frequency and timing of instalment payments; and amount of each payment; and
• certain fees associated with the loan such as a broker or lending fee.
Sometimes you think you are getting the best guarantor loan that is on the market but how do you know? One way is to check the APR as this can tell you at a glance if the loan you are applying for is competitive or not. Many lenders will have a really low interest rate and then load the loan with fees such as lender charges or broker fees and this has the effect of increasing the APR.
So the next time you apply for a loan, remember to check the APR!
What is an unsecured loan?
An unsecured loan is another way of describing a loan that is offered to a borrower that does not have anything in the way of security to offer the company lending the money such as a house.
This type of lending is ideal for younger people particularly as it is unlikely that someone in their early 20’s would have enough equity in a property anyway, let alone have a mortgage on one. Other types of unsecured loans such as guarantor loans are also ideal for people whose circumstances mean that they will be turned down by high street lenders such as banks or building societies because of a bad credit history. A guarantor loan does not require that any credit checks are carried out by the lender on the borrower, instead all references and checks are made on the person applying for the loan, in this case, the guarantor.
Because of these criteria, guarantor loans from Any Type of Loan have become extremely popular and over 200 people every day apply for a loan through our website.
Unsecured loans are also very quick to payout. Unlike mortgages and other secured loans, unsecured loans can be paid out within days of making the initial loan application and that includes all referencing, credit scores and credit checks and bank details. As long as the applicant (the borrower) submits all the information required on day 1, there is absolutely no reason why the loan cannot be paid out within 5 working days of the application being submitted to us online.
The amount that can be borrowed on a typical unsecured loan is anything from £1000 to £10000 and with a guarantor loan it is from £1000 to £5000 and this is the really interesting bit, with a guarantor loan you can even borrow up to £1000 if you are unemployed.
