Have you ever wondered how do Guarantor Loans work? In this post, we will seek to answer this question for you, so that you will understand how guarantor loans work.
The concept of guarantor loans is actually quite an old one. Years ago most major lenders and banks asked for a guarantor to guarantee the loan if you defaulted.
This was true for unsecured personal loans and even car loan finance as well.
Find Out How Do Guarantor Loans Work
Guarantor loans are very suitable for someone who has a bad credit history, a poor credit history, a low credit score or even someone that has not had credit before and has no credit history.
Guarantor loans work by you applying for an unsecured loan online, but instead of your credit rating being important for the acceptance of the loan, it is actually your guarantor’s credit rating that is critical.
You must of course be able to afford the repayments of the loan and so must your guarantor, in case you default. Approved income sources can be from employment, self-employment, pensions or even savings.
Guarantors do not have to be necessarily a home owner. They can also be a member of your family, a friend or your employer and can be tenants as well as home owners. Getting a guarantor approved is very straight forward and they can be approved online at the time of application.
So, you can see that a guarantor loan application is very similar to a non guarantor loan, with the only difference being that you need to submit your guarantor details as well. Loans can be paid out quickly, normally within 24 hours and sometimes the same day, if the lender gets all the information at once.
If you have been turned down for a loan elsewhere, why not just sit down and thinking about someone you could approach to be your loan guarantor. You could have your loan sorted sooner than you think!