If you are struggling to find the finance that you need, you will find that applying for a guarantor loan could be the smartest move that you will make. With a guarantor loan, the role of the guarantor plays a huge role in the money that you can borrow and the rate of interest that you have to pay back.
The guarantor provides comfort to the lender, and it is their positive credit score that sees the borrower obtain an attractive offer. Guarantor loans can be taken out for a wide sum of money, with loans on offer from £1,000 all the way to £15,000. The amount of money that you borrow depends on the lending company but you should only borrow what you are able to pay back. Even though a guarantor loan is quite affordable, it isn’t a frivolous matter. This means that you should look to only borrow what you can afford, not what you can get your hands on.
Find the option that suits your needs
While guarantor loan finance options are becoming increasingly popular at the moment, it is not as though they are a new phenomenon. Before banks and lenders utilised computer software and technology to determine who could obtain a loan, they utilised a trust system where they worked out who could afford to pay off a loan and who would support them in the loan. You will also find that some landlords and mortgage providers continue to utilise a guarantor based system these days as well. If you suffer from poor credit, you’ll find that a guarantor loan is a very attractive option for you.
People with bad credit ratings will often be turned down in their loan applications and if they are accepted, they will find that they are required to pay a high level of interest. It is the high APR that impacts on most people’s ability to pay off a loan, which is why the presence of the guarantor is such an appealing one for lenders and borrowers.
Given that there is a great deal of responsibility for the guarantor, it is vital that the guarantor is happy and confident with what they may be asked to do. If the borrower fails to pay off the loan, the lending company will turn to the guarantor, and this could lead to them paying a lot of money. This is why the guarantor must be confident about their responsibility.