All You Need To Know About Guarantor Loans
If you have a credit history that isn’t perfect or just good enough, getting a loan can be really difficult. If you happen to land on a loan under any circumstance, you’ll have to live up with the struggle of repaying the high interest rates. That will lead into a serious debt issue which can tarnish your credit score. Things are totally different with guarantor loans, which can offer you a flexible and affordable means of fixing your financial needs, despite your poor credit score.
Guarantor loans are different from other kinds of loans in that you’ll need a guarantor. Your guarantor can be a family member, a friend or a work colleague who willingly offers to back up the loan agreement through signing an indemnity form. On signing the form, your guarantor agrees to repay your loan, in the unlikely case of you failing to repay. In the case that missing repayments occur consistently, the credit score of the guarantor will be affected. The guarantor can be aged between 18 and 75 years of age. They should also be holders of a UK bank account, a decent credit score, and a minimum income of £1,000 per month.
Guarantor loan is a method of borrowing money based on trust, and was common in banking or development societies before use of credit score system emerged. Today, the popularity of guarantor lending is growing very fast once again, as once upon a time, you simply walked into a bank, and have a little chat with the manager and come out with your needed loan at hand. Nowadays, that is becoming seemingly impossible especially if you have a bad credit score.
Many people in UK are slowly adapting to the trust based nature of guarantor lending. This method is becoming more popular especially for those who have had their loan applications to banks rejected. It is also suitable if you have a bad credit score. If your guarantor trusts you and is willing to stand in your position, then why shouldn’t lenders trust them? When applying for a guarantor loan, decisions are not just based on what computers say about you. If you have someone who trusts you and is willing to be your guarantor, feel free to make your guarantor loan application from this source.
You are free to tailor a credit loan to match your personal financial needs, and can borrow as from £1,000 up to £7,500 over a period of 1 to 5 years. This loan amount is very high as compared to what you would get with a bad credit score from other types of lending. You can either borrow a small or large amount and the repayment can be spread over a short, medium or long term period. Since you will be dealing with a direct lender, you won’t be paying any broker fees and once your application is accepted, the money will be issued to you quickly without a fuss.
What’s more, your repayments are fixed on a monthly basis and that will grant you the peace of mind, knowing that your scheduled repayments will remain the same during the loan period.