When it comes to taking out a guarantor loan, you really should have a purpose or aim in mind. A guarantor loan isn’t a frivolous thing that can give you additional money for the sake of it, you should only be looking to take out a loan with some end purpose in mind. While guarantor loans are far more attractive a proposition than payday loans, they shouldn’t be treated any less seriously.

However, it may be that you find yourself needing money, and if you do, taking out a guarantor loan can be a sensible way to make the most of your cash. Here are some of the most common reasons people have for applying for a guarantor loan:

Short term cash issue

Unexpected bills and short term money issues are the most common reasons people have for taking out a short term loan. It is easy to see why people would need this level of support in a hurry and if you are looking to resolve a financial problem at short notice, a guarantor loan is likely to be one of your best options. Car repairs, washing machine breakdowns, boiler problems and unexpected school fees are all reasons why you might need short

Making home improvements

We all like to have a good looking home, and it may be that you are driven to make improvements to your home. This is where obtaining a guarantor loan can be of benefit. Taking out a guarantor loan to buy the equipment or materials you need to improve your home and spreading the cost out over a longer period of time makes perfect sense.

Pulling money together for a holiday

If you feel as though you need a break, taking a holiday can be of considerable benefit to you and your loved ones. However, if you are struggling to pay for the holiday up-front but feel as though you need a break, there is a lot to be said for taking out a guarantor loan and spreading the cost of the holiday over a longer period of time.

Paying off payday loans / Consolidating debt

If you have a payday loan, it makes sense to take out a guarantor loan, pay it off, and then pay off the guarantor loan over a longer period of time. Consolidating your debt and dealing with it in a more effective manner makes perfect sense, and it should allow you with a greater degree of financial freedom.

Business needs

Many businesses need short-term financial assistance and this is where taking out a guarantor loan can be of benefit. If you are a start-up company, you know who difficult it can be to obtain funding and it may be that a guarantor loan, in line with your ability to pay the loan back over a number of months is a great way for you to obtain finance and funding.