While there are a number of good reasons to opt for a guarantor loan, one of the best reasons people have for applying for a guarantor loan relates to their credit history. If you have a good credit history, it makes sense to initially apply with trusted lenders. The traditional ways of obtaining a loan, through banks and building societies, is still the starting point for many people. You can see why people would turn to these providers first of all but in recent years, they have been reluctant to provide loans to people with a bad credit rating.

Another factor that can impact on the decision to avoid applying with a traditional lender is the length of time it takes to apply through these channels. Traditional lenders take some time in evaluating loan applications and if you need money in a hurry, you are advised to try a different option. The fact that guarantor loans can be applied for online ensures that you are likely to receive a faster response and answer. This is something to bear in mind if you do need money at short notice.

Your credit rating shouldn’t prevent you from obtaining credit

However, if you don’t need money in a hurry, there are still many reasons why you should look at the guarantor loan companies when it comes to finding the most effective loan for your needs. When it comes to credit history and guarantor loans, most people will find that they can find the solution that is right for their needs.

This is all down to the presence of the guarantor. The fact that you have a friend, family member or colleague who is willing to vouch for you is a pleasant and positive thing and is something that many people will feel happy with. However, there is a far more functional benefit that comes from this endorsement.  The presence of the guarantor provides a more affordable rate APR, which is one of the most important things to look out for when trying to find a loan that is best for your needs.

Your credit history and rating is one of the most important things in the modern era, and it is no surprise that it plays a big role in many loan applications. Of course, when it comes to guarantor loans, you’ll find that your credit history isn’t quite as important as it could be. For many people, this is a hugely positive factor.