When you borrow a loan with a guarantor, he shares responsibility of repayment with you. By signing the loan contract a guarantor makes a promise that the debt would be fully paid off. As per the pledge, if the borrower fails to meet the commitment, the guarantor would take over the obligation and pay the requisites. A person of high credit score generally signs as a guarantor for a borrower with poor credit history.
Roping in a guarantor thus seems a viable option when you are reeling under high financial break down and need urgent funds. But not everyone has a pool of well wishers willing to share the credit risk. Cash crunch owing to bad credit history, is difficult to be backed by a loan. The lenders outrageously reject the no guarantor loans applications with high risk probability.
Herein brokers play a crucial role for those who are going through a financial emergency. To reap the profits of lending, you can use the service of efficient brokers and know the potential credit options available to you. A loan broker connects borrowers with lenders.
Let’s explore 4 situations when a broker can help you get a loan without a guarantor or upfront fee
Bad credit situation: Your credit score is a numeric assessment of your credit worth. The bad credit situation could be a result of failure of loan repayment or high debt to income ratio. Whatever be the cause of mounting debts, the good news is an unsecured loan broker can introduce loans to you.
Conventional lending institutions do not grant loan to people with bad scores but with the help of a broker, you can check out easy borrowing plans such loans with no upfront fees or without a collateral or guarantor.
Unemployment: To your amusement, a broker can evade your cash woes even when you are unemployed. There are several plans that offer financial respite to people without income and a broker can help locate such options to you. The conventional lenders reject the applications in the absence of income and with the mediation of a broker it is possible to do so.
People on benefits: If you are living on benefits due to unemployment, disability or age, you can contact a broker. He can provide you adequate financial help on how to manage the funds and help your poor score. The proof for benefits is considered as proof of income. Unsecured loan broker can readily help you avail loans at lowest possible rates.
Students: Students looking for short term education loans can also consider contacting a brokering firm. The loans on panel include easy loan repayment options for students. Owing to the fact that most students do not earn and have practically no credit history, the loans offered also include an extendable clause. This reduces the risk of non-payment of the loan and you can pay later on when you start earning.