It’s all about the Guarantor
No, it really is. People often ask us if they can apply for a guarantor loan even if they have a poor credit history, County Court Judgements, defaults, etc but the quick and simple answer is that anyone, regardless of their credit history can apply for a guarantor loan.
Of course, just because a guarantor loan allows an applicant to have bad credit does not mean that they will be accpeted for a loan. The criteria that every guarantor lender works to has to take account of something called ‘responsible lending’. This means that individuals must be able to demonstrate that they have the financial means to pay for their new loan and not be in a worse position financially if they were to take this loan out. Unfortunately, there are lots of brokers and lenders who don’t abide by this ethos meaning that a lot of loan applicants have applied for a loan without any real strategy on how to pay the loan back. This will simply lead to heartache and you can almost guarantee that these borrowers will fall into difficulty. You can read our guarantor loans FAQs here.
So, assuming that we are happy that the applicant can afford to repay their loan, the real assessment of whether they can have it will be decided by the credit score that the guarantor achieves.If they achieve the highest credit score available then they will be able to get a loan of £7,500 whereas most companies restrict borrowing to £5,000.The great thing is that most of these loan applications will pay out within 24 hours of all of the paperwork being received.
So, whilst the applicants credit status is important, it is nearly always about the guarantor.
