Guarantor loans are a borrowing option that not enough people know about, and it can be a great way to get money without having a high credit rating. These loans are fairly unique in a number of ways, and they have become very popular with people in the UK. You will need to learn a few basic things about bad credit guarantor loans so that you can increase your chances of getting one.
The “guarantor” is the person who essentially acts as the co-signer for the borrower. This person agrees to take on the rest of the loan payments if the borrower can no longer do so. There is a lot of responsibility associated with being a guarantor.
Some of the requirements of a guarantor include:
Representative Example: £400 borrowed for 90 days. Total amount repayable is £561.92 in 3 monthly instalments of £187.31. Interest charged is £161.92, interest rate 161.9% (variable). Representative 305.9% APR. We are a broker not a lender. We don't charge fees. We don't sell your personal information.
Bad credit guarantor loans can be used for anything, but you shouldn’t take one out on a whim. It is important to think about whether or not you really need the loan before you make a decision. Many people use these loans to purchase a car or consolidate their debt. If you have a lot of different credit card bills you are behind on, this can be a good way to lower your monthly payments. A guarantor loan can combine individual debts for a lower overall interest rate, making them a lot more manageable.
Interest rates on guarantor loans can be anywhere from 40-50%. These loans come with much higher rates than bank loans, but they are a lot easier to get. You will also want to consider that the average guarantor loan is much less costly than a payday loan. One of the best ways to get a good interest rate on your loan is by finding the right lender to borrow from.
Those who get a guarantor loan can borrow anywhere from £1,000 to £7,000. The terms for these loans vary, but they can go up to 4 or 5 years in some cases. The maximum amount that you will be allowed to borrow with a guarantor loan depends almost entirely on your guarantor. The better the third party’s credit and income is, the more you will be allowed to borrow. The length of the loan term will be determined by the amount you have to pay back. Larger loans tend to have longer terms. A longer term will make the loan much easier for you to pay back.
Private lenders tend to give out guarantor loans, and there are many of them to choose from. MoneyWorld can help you get one of these loans, and the application process couldn’t be easier. These loans have gone through the roof in terms of popularity in the UK because of everything they offer. While approval is never guaranteed, many people get guarantor loans every single day. You don’t want to choose just anyone to borrow from, because not all private lenders will provide you with the kind of deal you’re looking for. Guarantor loans are a great way to get the money you need with bad credit, but you will need to find the right person to sign on.