Best Guarantor Loans

If you’re looking for more information on the benefits of using the best guarantor loans, then keep reading. In this guide, we are going to share several pieces of advice that are worth keeping in mind whenever you’re looking for the best loan options – so with this in mind, let’s learn more.

The benefits of using a guarantor loan

First of all, there are many key advantages associated with using this form of loan, especially if you are have poor credit rating. In general, there is no credit check required to receive a guarantor loan, so if you pass the initial checks, then there’s a good chance you will qualify.

Of course, using a guarantor loan is also an excellent way to boost your overall credit score as well – because the system will allow you to benefit from the improved score of your cosigner. However, this does mean your cosigner needs to have an excellent credit score to begin with, but this will usually be the case if they are already in a position to cosign the loan for you.

Another benefit of using a guarantor loan is the fact that it will allow you to borrow a larger amount of money – even if you have a poor credit rating. In fact, this is one of the few ways that people with poor credit ratings can receive larger loans, and the extra guarantee offered by a cosigner will go a long way towards securing you a generous loan with a reasonable interest rate.

Understanding the eligibility criteria

One of the stumbling blocks people may face when applying for a guarantor loan is being eligible in the first place. In most cases, you will need to find a trusted friend or family member who can guarantee a loan, but this person will not be able to share any pre-existing financial obligation with you – such as credit card accounts, mortgages, or a bank account.

What’s more, this person needs to have a good credit score and have a positive financial history – with no cases of bankruptcy or court actions against their name.

If you are fortunate enough to have somebody who can fulfil the role of cosigner, then you should be in a good position to receive a guaranteed loan from your chosen lender.

Additionally, it’s worth noting that the guarantor will need to be somebody who you have a significant level of trust with because many guarantor loans will be secured against property – and if the loan is not repaid in time, this could be at risk.

How soon can you receive the funds?

Once you have been approved for your loan, then you will likely be eager to receive the money as soon as possible. Once your lending company has viewed your documentation, they will usually be free to release the funds within seven working days – which is certainly much faster than many of the alternatives.

The interest rates for your payments will vary depending on the deal you have received, but it’s important to note the interest rates can be quite high, so you will need a solid plan in place to manage the repayments and ensure they arrive on time.

Conclusion

Overall, taking advantage of a guarantor loan is a fantastic way to obtain the crucial funds you need for a large purchase, even if you have a poor credit rating.

By borrowing some of the positive financial history from a trusted cosigner, you’ll often be able to receive a loan that comes with far more generous terms than you otherwise be able to access, and you will ultimately be able to receive a larger amount of cash, too.