Who Can Be Your Guarantor On A Loan?
Here’s a little-known fact about guarantor loans: Around ten percent of borrowers thought in the beginning that they could not get a guarantor to co-sign their loan. So, if you are worried that none of your friends and family are willing to co-sign your loan, do not worry, because most of the time, it’s all a matter of asking them.
Most guarantors on a loan are actually reluctant to sign their name on loan documents. This really isn’t surprising considering the fact that if the borrower defaults on payments, it will reflect on their credit scores. So, if you’ve just been asked to become a guarantor on a loan, make sure to think about it first. Not just once. But many times. What you want to do is make sure that the person who is borrowing is able to pay for the loan.
What are the keys for anyone looking to find a guarantor for a loan? You can find the answer to this question and more throughout my website.
Always Ensure You Can Afford Repayments
If you are the borrower, please make sure that you can repay any loan that you borrow because it’s not just your own credit report that’s at stake here. You are also putting the credit score of your guarantor at risk.
In any case, you should know that there are many lenders out there that are more than willing to lend money to people who have low credit scores as long as they have a guarantor on their loan. Take note that guarantor loans are no better than ordinary personal loans in terms of interest rates. You will still be charged APRs of 49% to 304% depending on the loan amount and the lender you borrow from. However, with a guarantor you are more likely to see the money on your bank account than those who don’t.
Please Note – To find out how your credit score can affect your ability to borrow, please check out the following link - https://www.moneyadviceservice.org.uk/en/articles/how-your-credit-score-affects-the-cost-of-borrowing
Do You Have a Good Credit Rating?
Sure, you can always get a personal loan with no guarantor involved but if your credit score is at the bottom low, most lenders will not approve your loan application. This really isn’t surprising. All credit companies like to minimize the risk of non-payment.
Anyway, if you need money right now, there are many lenders out there that can help. You just need to search for them online on Google. You don’t want to apply for a loan individually with each lender. You can apply for a loan one time through the website of a finance broker, and then your loan application will then be sent to a network of lenders.
Will You Get a Fast Response To Your Application?
Most lenders approve loans within ten minutes. But these approvals are usually done on principle, and there is always the possibility that your loan will be refused in the middle of the process especially if you don’t meet the requirements. However, if your loan does get approved, it is usually approved by different lending companies. What you want to do is to compare the offers.
Compare the offers on these points: Interest rate, loan amount, terms of payment, loan fees, and penalties. Do the math on how much each offer would actually cost you. While all online personal loans are expensive, you will find offers that are less so.