If you are looking to obtain a loan but you find that a poor credit score is hampering your chances, you need to make yourself aware of the other options that are open to you. Payday loans have certainly grabbed the most publicity with respect to loans open to people with poor credit scores but you should look to avoid payday loans.
These loans are very expensive and they often leave the borrower in a more difficult financial situation than they were previously in. The tight turnaround time for payday loans is a big reason why many people struggle to pay them off in full and on time but the high level of APR associated with these loans is another factor in why payday loans are not of great benefit or interest to many people.
Explore what a guarantor loan can do for you
This is why there is a need to explore other loan options and a guarantor loan is likely to be a suitable option. If you have a poor credit score or rating, you’ll find that a guarantor is available to you and thanks to the presence of the guarantor, it is available at an attractive rate of APR. This makes this style of loan the most suitable loan for people with poor credit. It ensures that finance is available and that it is affordable.
If you are asking what is a guarantor loan, we can help.
A guarantor loan is an unsecured loan that sees an additional person acting as the guarantor. It is this additional presence that makes the difference. Guarantor loans will commonly run between 1 year and 7 years and people can generally borrow between £1,000 and £12,000. The length of time and amount of money on offer will vary from lender to lender, so it is important to check the terms and conditions provided by each guarantor loan firm.
A guarantor loan will often provide a solution when no other option seems available. There is also the fact that a guarantor loan can help a person to rebuild their credit score. Many timely payments will look good with respect to your credit score and this may mean that you don’t need to rely on guarantor loans in the future.
Anyone that is looking for a fast and convenient loan with an affordable rate of APR will find that a guarantor loan is the ideal solution for their needs. If you haven’t heard about guarantor loans, take the time to see how they can transform your life.