Guarantor Personal Loans Bad Credit – are you looking for a personal loan? Do you have bad credit? Do you have a family member or close friend that is happy to be a guarantor?
If these 3 statements are true then a guarantor personal loan with bad credit deal may be a great choice to achieve the money you need. There are various reasons why you may have bad credit and the reason you are searching for guarantor personal loans bad credit.
Failing to keep up with your financial commitments can have a detrimental effect on your credit score. Missed or late payments on loans and credit cards are the main reason people get themselves into financial difficulties.
Guarantor Personal Loans Bad Credit Lenders
When applying for finance lenders look at an individual’s credit score to decide whether they will be accepted or not. If you have checked your credit rating or have a history of late payments or have County Court Judgments (CCJs) against your name it is likely you will be declined for a standard loan.
If you have bad credit you are a higher risk to the provider of not paying back the loan. Due to this applying for guarantor personal loans plans are a better option as you have a better chance of being accepted. Such loans are similar to standard personal loans however, they require a family or friend to be a guarantor.
This means if you fall behind on the payments it is up to them to pay the loan back. The elected guarantor will need to have a good credit score and if they are a homeowner, they should have enough equity in their property to be able to cover the amount you are borrowing.
The good thing about taking out guarantor personal loans with bad credit is it can help build a good credit score, as long as you stay below your credit limit and ensure you pay the agreed amount on time. A bad idea when taking out a guarantor personal loan is borrowing more than you know you are able to pay back and getting yourself in more financial bother, as well as the person that has put their name down as a guarantor.
Regardless of how you have come to have bad credit don’t worry; there are various guarantor personal loans bad credit deals out there that will meet your needs. If used correctly you can use this as an opportunity to work on building a better credit rating for your future.