When is a guarantor loan not a guarantor loan?
When is a guarantor loan not a guarantor loan?
You have probably seen or read a lot about guarantor loans if you have searching the internet looking for an unsecured loan. It seems that every finance company in the Uk is trying to get in on the act, so what is so special about a guarantor loan and when is a guarantor loan not all that it is cracked up to be?
Guarantor loans allow anyone with a poor credit history to apply for a loan with someone to vouch for them ie. the guarantor. Ok but what is so special about that you may ask? Well, if someone with a poor credit history tried to obtain a loan from a bank or other high street style lender, they would be refused point blank because the applicant would be considered a high risk (in bank terms, high risk=applicant won’t repay the loan!)
So that is when a guarantor loan comes into play.
Guarantor loans allow someone who is likely to be refused for a traditional loan, an opportunity to borrow up to £5000, as long as they have someone else who can vouch for their application. This person will be guaranteeing that the loan will be repaid whatever the circumstances, so even if a borrower cannot repay the loan or will not repay the loan, then the guarantor will step in and ensure that the loan is repaid in full.
Simple eh?
However, please be aware that some loan firms are purporting to offer guarantor loans to borrowers but amazingly (and we still can’t get our heads around this one) they insist that the borrower must also have a decent credit history, in addition to the guarantor. Now forgive us if we have got the wrong end of the stick but isn’t that the reason for a guarantor loan? If a borrower had a decent credit history then they wouldn’t need a guarantor loan as they could walk into any high street branch and get approved for a loan in no time. Very odd indeed.
However, if you apply for a guarantor loan from anytypeofloan.co.uk, your circumstances, whilst important, do not determine our lending decision or that of our lending partners so if you are in part time work, self employed, bad credit history, on benefits or a student, we will assess your loan application along with your guarantor and tell you withing a couple of hours whether you have been successful or not.
