More about Guarantor loans
Getting hold of a loan isn’t really that difficult if you have adverse credit or have missed a few payments on credit cards, rent or mortgage payments, it just means that you have to be a little more creative and that is where a guarantor loans comes in.
Guarantor loans are quite simply, the process of allowing someone to endorse your loan application to the lender. It has to be someone who is working and it has to be someone who has a fairly good credit history, because the whole point of a loan guarantor is that they are the ones that the lender will be basing their lending decision on, not the borrower.
So, a borrower can apply for a loan of say £5000 and have a pretty terrible credit history, you know the type, arrears on a mortgage or rent, a few missed payments on a credit card or simply too many credit searches in short space of time, whatever the reasons, all of these can effect your credit rating and you will have next to no chance of getting a loan.
By making sure you apply for a loan with someone you know to act as a guarantor; it could be a friend, relative, work colleague or even a neighbour, you can apply for a loan usually up to £10,000. The loan will be assessed on the guarantors ability to repay the loan but all of the payments each month will be deducted form the borrowers (the person with the bad credit) bank account. The only time (after the initial lending assessment) the guarantor will ever get involved again is if the borrower cannot or will not repay the loan, then it falls down to the guarantor to make all of the repayments including any shortfall or arrears.
So as you can see, even if you have a bad credit history or have been refused elsewhere by other banks and lenders, a guarantor loan can offer youa solution so get in touch today.
