If you need financial support, it is important that you look at all of your options. There are a number of loans available to people, although you may find that the options available to you are limited depending on your credit history and rating. This can be frustrating, but it is important to weigh up what options you have at your disposal and then decide what is best for your needs.
You should be looking into guarantor loans and instalments and asking is guarantor loan like an instalment loan? In some ways, it is because you can obtain finance in a hurry, and of course, you are expected to pay the loan back. An instalment loan is slightly different from a payday loan as the payments you make are spread out over a longer period of time. This is a great benefit to many people and it is a reason why instalment loans are rising in popularity, especially compared to payday loans.
You will find that the APR on offer is an area where there is a big difference between a guarantor loan and an instalment loan. The APR for the guarantor loan traditionally comes in at around 40-50% whereas the APR for an instalment loan can sit around the 100% level. This means that the amount of money you have to pay back with the instalment loan is much higher than a similar loan under the guarantor loan conditions.
You should be able to borrow more money with a guarantor loan
One of the biggest differences with respect to the two types of loans is the amount of risk that is associated with the loan. There is a greater degree of risk for the lending company with an instalment loan, and this is why you are usually only able to borrow a smaller amount of money, typically up to £1,000 with an instalment loan. With a guarantor loan, if you can find a guarantor that is willing to vouch for you, you should be able to take out a loan of a higher sum of money, if required.
You often get longer to pay back with a guarantor loan
As there is less risk involved with a guarantor loan, you will find that you often get longer to pay the loan back with this style of loan. Traditionally the length of time associated with instalment loans is 3 months to 1 year whereas for a guarantor loan, the timespan for repaying the loan can range between 1 and 5 years.