You will have noticed the level of criticism that has been placed on payday loan companies of late and it has to be said that this is a deserved level of criticism. There are many different reasons why payday loan firms receive criticism and unless you are in a very dire situation and you have exhausted all of your other options, you should never go near a payday loan company.
Make sure you examine all of your options for a loan
The problem comes with the fact that many people believe that they have exhausted all of their options when it comes to finance solutions but in actual fact that they haven’t. There is no need to settle for a payday loan if you have overlooked a guarantor loan. There are many different reasons why guarantor loans are better than payday loans but no matter the reason that is most relevant to you, the fact that this is the best type of loan means that it has to be the option that you go for.
The most obvious reason that guarantor loans are better than payday loans comes with the far more attractive level of APR. This is immensely important because the level of APR will impact on the amount of money that you actually end up paying. The higher the APR, the higher the cost of the loan so you will want to choose a finance option that has a lower level of APR. Even a quick comparison between the two options will reveal the fact that a guarantor loan is far more attractive because it has a better, which means lower, APR. This means that you are paying less money for the privilege of the loan, which has to be seen as a positive thing for most people.
The guarantor provides the confidence to the guarantor loan firm
The attractive nature of the guarantor loan option comes down to the fact that the guarantor is trusted by the guarantor loan company. The borrower doesn’t need to have a good credit rating to obtain this style of loan; the role of the guarantor provides the confidence to the lending company. This means that you can be confident about obtaining a fairer and much more affordable style of loan, which has to be seen as a positive thing.
When it comes to obtaining financial assistance, you may think that payday loans are the best bet for your needs, but this isn’t the case. Turning to a guarantor loan provider will provide you with the best standard of support and the most attractive financial option.