What are Guarantor Loans?
Who is a Guarantor?
Are Guarantor Loans Right for Me?
Yes, guarantor loans can prove to be the perfect way to borrow funds, especially –
- If you have a limited or no credit history
- If you have a bad credit rating
Unsecured personal loans for bad credit are available in the market. However, they can often prove to be costly due to the high APR. Moreover, if you have bad credit, the amount that you can borrow in the form of personal loans is limited.
On the other hand, when you opt for a guarantor loan, your APR is relatively low due to the reduced risk proposition of the lender.
You can also borrow a greater sum of money up to £10,000 and in some cases even up to £20,000.
Moreover, you also have the flexibility to pay the amount over a span ranging from one to five years.
When you repay a guarantor loan in full and on time, your credit score will get a much-needed boost.
This loan can also help you build a credit history if you don’t have one already.
While a guarantor loan entails many benefits, it also has its own set of drawbacks. To begin with, finding a guarantor who trusts you, given your relatively low credit score can be a tricky thing.
Moreover, in case you are unable to make the repayments, and your guarantor has to do so on your behalf, it can severely affect your relationship with the guarantor.
Hence, you should think twice and only go ahead with this loan type if you absolutely need it.
Can I Get a Guarantor Loan with Bad Credit?
Yes, guarantor loans are primarily designed for individuals with less-than-ideal credit ratings. All you need to do is find a guarantor, who has a strong credit history, stable income, and employment, and is willing to co-sign the agreement.
When the lender knows that there is a financially responsible person who is ready to back your decision, it increases the lender’s confidence in your ability to repay the loan. It also reduces the risk assumed by the lender, therefore making it easier for you to acquire the funds.
Key Features of Guarantor Loans
- Loan Amount – £500 to £20,000
- Repayment Period – 12 months to 60 months
How Can I Apply for a Guarantor Loan with Loan Broker?
The process is fairly simple and hassle-free. All you need to do is follow the below-mentioned steps and get a guarantor loan –
- Tell Us About You
Fill in the online application form with personal and professional details such as – date of birth, contact number, email address, current employment status, bank account details, residential address, and the loan amount you need and for how long. We will also need the details of your guarantor.
- Get the decision
Our direct lenders will verify the information provided by you. They will also assess your loan eligibility to evaluate your creditworthiness and that of your guarantor. They need an assurance that you and your guarantor will be able to repay the money to them, without fail. The decision made by them will be displayed on the screen within a few minutes.
- Loan disbursal
If the lender approves your loan application, the loan amount will be disbursed by the lender to your bank account. The time taken for loan disbursal depends on the lender you’ve chosen and your bank.
Find Homeowner Loan – With Loan Broker
Loan Broker is an FCA registered credit broker that operates across the major cities of the UK. All the lenders associated with it are also authorised by the financial regulator. The mission is to promote responsible lending and hence, our lenders perform soft credit checks to offer initial quotes. Soft credit checks are safe as they do not leave any footprint on your credit report and doesn’t even harm your credit report.
We do not charge any upfront fees to our consumers. We offer an array of unsecured loans such as – debt consolidation loans, self-employed loans, to help borrowers get back on their financial track. As a credit broker, we help our borrowers to find the right lender by considering their requirements. With Loan Broker by your side, you can choose no obligation loans. We are loan brokers, committed to extending a true hand of help for borrowers seeking hassle-free, and affordable loans despite bad credit rating.
Borrow responsibly and repay timely.