When it comes to obtaining finance, the fact that a guarantor loan provides a more attractive method of obtaining a loan than more traditional finance methods has to be seen as a positive thing for many people. If you currently suffer from a poor credit rating and you have concerns about obtaining affordable finance in your own right, you need to look into other options that will be more suitable to your needs. One way of doing this is to apply for a guarantor loan but you shouldn’t think that there are no checks involved with this form of loan application, there are.
The guarantor will be contacted
The person who acts a guarantor will be checked and this makes a lot of sense. A soft check will be undertaken on their credit file, which won’t leave a trace, but it does allow the guarantor loan company to verify the information that has been offered to them regarding the guarantor. It is also important to point out to the guarantor that they will be contacted by the guarantor loan company prior to approving the loan.
This is standard practice amongst the most reputable guarantor loan companies, so informing the guarantor that they will receive a quick call before the application is approved and processed will speed up the process. If the guarantor has all of the information they need at hand, you should find that the application process can run quite smoothly.
The guarantor loan company will carry out a check on you
You should also be prepared for the fact that a guarantor loan company will run a check on you. If you have a poor credit rating or no credit history, you may start to worry about this but it is genuinely nothing to worry about. A guarantor loan affordability check is carried out to ensure that you have the means to make the payment in full and on time every month.
This is something that you should be confident of before applying for a guarantor loan in the first place, but it is standard practice for the company to double-check on your ability to pay the loan. As long as you have an income and are in a position to pay off the loan on time and in full, you won’t have any problems with a guarantor loan affordability check.
Obtaining finance of any kind can be stressful but preparing yourself for what is involved with the process will help you to stay on top of matters.