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Guarantor Loan Tips: Reasons For Applying For A Guarantor Loan

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When it comes to obtaining a guarantor loan, you can be confident that it is likely to be the best type of loan that is available to you. If you have a poor credit rating or you have no credit rating at all, you will find that traditional banks and financial institutions will be unwilling to provide you with a loan at any reasonable rate. You should also find that payday lending companies are more than happy to provide you with a finance option, but this is not going to be at a sensible rate of borrowing or APR.

applying for a guarantor loan

There is a need for a middle ground and it is fair to say that a guarantor loan provides the most effective solution for people who require finance. It is important to remember that you shouldn’t take out a guarantor loan just for the sake of it or for a frivolous reason; you should only apply for a guarantor loan because you really need the money. There are many reasons for applying for a guarantor loan, and if you do need the money, it is best to apply for it in the most effective and sensible manner.

Consolidate your debts with a guarantor loan

One strong reason for applying for a guarantor loan is to consolidate your debt. If you have a number of loans or credit cards, at high levels of APR, it has to be of benefit to clear out these debts and pay off a sum of money at a much more attractive rate of borrowing. The attractive rate of borrowing associated with guarantor loans will ensure that you consolidate your loans into a single amount. This makes life easier for you, it will make it less likely that you default on your loan and you should find that you improve your monthly finances by being able to pay a lesser amount, while still clearing your debts, each month.

Guarantor loans can provide excellent car finance solutions

It may be that you need a guarantor loan to buy a new vehicle. If you are dependent on your car to get around or to care for your family, you will feel that your life has ground to a halt without a car. If you need to pay for expensive repairs or to replace your car, a guarantor loan may provide you with the most effective solution for your needs. In fact, there are even guarantor loan options that are focused on car finance solutions, so if this is what you need, help is available.

You may also find that home improvements, holidays and unexpected bills all offer viable reasons for applying for a guarantor loan.


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Guarantor Loans

A Representative Example

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48 Monthly Repayments, borrowing £2000
Total Amount Payable: £4067,04
48.9% APR Representative
Rate of Interest 25.84% Fixed Flat Rate
Monthly Repayment: £84.73