Are guarantor loans available today? Okay, you have poor credit due to bad decisions or circumstances beyond your control. You blame the world, bad luck or even karma so you decide to buy a black skier mask along with a real looking toy gun and you go to the bank that rejected you-three times (it’s a fair choice).
Your sweat glands are working overtime and you’re pretty sure you need life support but you know you got this, you’ve seen it done a million times (in the movies). You confidently run into the bank, waving your toy gun and with dramatic flair yell, “Put your hands in the air!”
As you are slammed onto the floor by the force of a concrete truck named Steve (a security guard), you realise belatedly you should have tried a guarantor loan instead.
Representative 277.5% APR - Representative Example: Amount of credit: £750 for 12 months at £119.21 per month. Total repayment of £1430.52. Interest: £680.52. Interest rate: 140% pa (fixed). 277.5% APR Representative.
What is a Guarantor Loan?
No, it is not a loan from a shady character that will bust your knee caps.
A guarantor loan is your last hope when all credit types has put you in dire straits with most financial institutions.
It is a loan that necessitates the debtor (you) to have a trustworthy individual to stand in as a guarantor.
This loan spans a time frame of about 1-5 years in which the amount owed needs to be settled.
Although it sounds foreign and possibly suspect, the guarantor loan has been around since before a computer became the ‘voice’ of credit availability.
What is a Guarantor?
Although the name ‘guarantor’ is shared somewhat with a Japanese mythical creature (Guarani), it is a very modern and realistic solution to poor credit.
The guarantor is usually a loved one or family member that steps in as assurance that if you are unable to fulfill that month’s obligatory payment, your chosen financial ‘angel’ will.
There are required stipulates for the guarantor:
- Must be over 21
- Credit history MUST be decent (yours can be awful!)
- Must live in the UK or their credit portfolio must be impeccable
- The person you choose to fulfil the role of guarantor must prove to be financially secure enough to meet your need as well as their own
- A person cannot already be a guarantor on another loan already.
The Guarantor Loan Process Outlined
The guarantor loan option is explored when all credit types is undeniable and when choosing a guarantor, the person must not be connected to you financially.
The guarantor has to then be credit checked and have all other criteria verified to fulfil their purpose. Note that this type of loan is not a secure loan and the interest paid may reflect this. The interest depends on the size of the loan and how the guarantor faired in the credit check.
Once your guarantor checks out, you have pretty much a good chance of acceptance on your guarantor loan by any reputable Guarantor Loans UK Lender.
Then in as little as 24 hours you will have your cash in hand and be one step closer to realising your dreams.
Conclusion: guarantor loans available today!
‘Poor credit’ does not have to mean ‘end of the line’ or ‘do something stupid’ any more; now all you need to do is get a guarantor loan and prove to the world that credit can be given when credit is due.