It is important to bear in mind that guarantor loans are not like payday loans. There are a number of key differences between the two loans and one of the most important differences comes with the fact that a guarantor loan is available with a much more attractive rate of APR. This is because the presence of the guarantor provides the lending company a greater degree of confidence so if you are looking to find the best way to get money, you have to think about a guarantor loan.

Another strong reason to opt for a guarantor loan comes with the fact that you have more time to pay off a guarantor loan. A payday loan traditionally has to be paid back in a short period of time. This means if you don’t have the money required to pay back the loan, you could end up rolling over the loan or taking out further money to pay off the loan. Before you know it, you can be caught up in a debt cycle which is very difficult to break out of.

While the sums of money involved with guarantor loans are greater than payday loans, there will be times when guarantor loans provide cash when you need it. If your boiler has broken down, you’ll find that it can be quite expensive to have it repaired. It may be that a payday loan company is not willing to provide you with the sums of money you need to pay for the repair work. If this is the case, you’ll find that a guarantor loan is likely to be the best bet.

Do you need money in a hurry?

This can be said for so many things where you need money in a hurry. If your car breaks down, it may cost a lot to repair and there could be additional costs involved with this time. You may need to find money for public transport or taxis at this time, and this can impact on your budget and how much money you have to spend. It is important that you think about the total cost of dealing with an issue and then make sure that you are covered.

A guarantor loan is not a frivolous matter and it isn’t something that you should take out just because you can. It is good to have access to these loans and additional cash but always make sure that you need the money and that you can pay it back.