When it comes to obtaining finance, it is understandable that many people face problems due to having a bad credit history. Your credit rating is one of the key factors that finance companies take into consideration when offering loans, and if you have a bad credit rating, you will find that your options are limited. The fact that many traditional finance providers will not provide loans to people who have a poor credit rating has led to alternative solutions being sought and provided.

In many ways, this has created the need for payday loans. These loans, which charge an extremely high APR for the loan, play on the fact that people are unable to obtain finance from traditional sources. There has been a growing belief that this style of loan is the only way in which people can obtain finance and this is why many people are more than happy to accept the high level of interest associated with this style of loan. There has been a gradual shift to thinking that the only way that people with bad credit can receive financial support is through paying through the nose for it with respect to the interest that they have to pay.

This isn’t the case.

If you have a very bad credit history but need financial assistance in the short term, obtaining a guarantor loan is a good solution. With a guarantor loan, the focus is not on you, but on the person who is willing to act as a guarantor for the loan. This means that your credit rating can be very bad but as long as there is someone willing to vouch for you, you will find that you have a fair chance of obtaining finance at a reasonable rate.

Guarantor loans provide a suitable option

If you are asking will I get a guarantor loan, even if you have a bad credit rating, you will find that the criteria is well laid-out. As long as you and the guarantor meet the basic criteria, there will be an opportunity for you to obtain finance at a rate that is affordable and attractive.

 

It is easy to see why many people believe that a poor credit rating can feel like a damaging blow to their hopes of obtaining finance, but it doesn’t have to be the case. Payday loans may have initially filled the gap that was caused by finance firms minimising the loan options for people who have suffered from poor credit ratings, but this is no longer the case.

With a guarantor loan, you can obtain the finance you need, regardless of your credit history.