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Home>Bad Credit Loans>Guarantor Loans

When one is in a situation wherein one needs emergency money now, one may wonder about the right spot to initiate one’s search. There are characteristically numerous options at one’s disposal that one could avail. Let us consider the same:

Financial Advisor

The first step, in the case of many people, when they need money now UK, is to speak to a financial advisor who helps them through with their financial decisions.

There used to be a time wherein the financial advisors rendered their services for free. They would not charge their customers directly. But they would receive a commission from the lenders who were approached by the customers, upon a financial advisor’s recommendation.

This formulation resulted in the people suspecting the financial advisors’ services to be dubious. People ended up feeling that the advisors were more concerned about meeting their own goals, rather than their customers’ requirements.

Henceforth, a newer working model was promoted, wherein the financial advisors began to charge the consumers and stopped receiving a commission.

So to receive money, the consumers were now required to pay upfront to the financial advisors. The problem with such an arrangement is that there’d be a section of consumers who won’t be able to afford the services of financial advisors. The consumers were henceforth on a lookout for more affordable options.

Have a guarantor to vouch for you

Numerous people are frequently refused loans. This poses some difficulties for them. But they are in a position to avail of a loan which effectively helps them meet their short term requirements. For the same, they can take a little bit of help from their friends or family.

Their friends and family can vouch for them as guarantors, and significantly boost the odds of them getting a loan.

Guarantor loans hence come by as an ideal solution for the people who have an opinion that they’d be refused a loan due to their bad credit history.

Lenders are more willing to give a loan to an individual when he has a guarantor to vouch for him. They’re assured because of the guarantee that the guarantor would pay back the loan, in case the borrower fails to do so.

There are cases wherein a guarantor loan has a higher rate of interest as compared to a standard loan. This may be because a

borrower has a poor credit score or no credit score. The levels of risks involved are characteristically higher, and so the lenders increase the rate of interest.

Similarly, to have the application approved, the guarantor should be in between 21 and 75 years of age. He should have a good credit rating and a regular income.

A guarantor would be required to produce proof of income and ID proof. Similarly, a guarantor would be required to express the relationship that he has with the borrower.

An individual who has a strong connection with the borrower can vouch for them as a guarantor. But the individual should not be financially involved with the borrower. A borrower can hence not have his business partner or his spouse as a guarantor for him.

Borrowers prefer to go for guarantor loans because they are unsecured. To avail the loan, one is not required to have a property or a car. One’s assets are not at risk when one avails a guarantor loan.

One should go for a guarantor loan when one requires an emergency loan for bad credit UK. A guarantor loan can act as a means that boost one’s credit score. The presence of a guarantor facilitates access to quick loans bad credit UK. When one requires a loan quicker, guarantor loans are a preferred choice to go ahead with.

They also come by as a feasible choice when an individual is refused the unsecured standard loans.

There are, similarly, cases wherein one should not go for a guarantor loan. This can be accomplished when one is eligible for another kind of a standard loan.

Another scenario wherein a guarantor loan should be avoided is when your guarantor is not well known to you or is an unreliable individual. Guarantor loans should also be avoided if high-interest rates concern you.

Ultimately, a guarantor loan is a fine option to get fast loan, if other options for getting as quick loan exhaust