Loans with Guarantors – the 1 month payday loans might be soon a thing of the past and the shift is towards loans using guarantors instead.
Payday loans, as many will confess, can work out really expensive if not paid off in full on the due date.
Many have got themselves into financial problems this way and ended up with more than one payday loan still unpaid.
Deja Vu Loan Lending
Loans with Guarantors are a move back to the way banks used to lend money to people years ago
Loans with Guarantors is totally up front and transparent in it’s nature.
You know exactly the full costs before you sign the loan agreement and the exact amount you will repay each month for the duration of the loan period.
The only down side is that you have to find a guarantor who is willing to co-sign the loan agreement.
There are a number of Guarantor Lenders on the UK market, but most of them require the guarantor yo be a home owner.
Now, here is the good news!
Your Guarantor Doesn’t Have To Be A Home Owner
The Loans with Guarantors Lender that we use does NOT require the guarantor to be a homeowner!
Do you need a loan to be able to buy a new car, make home improvements or to consolidate debts?
Do you need a loan but you have bad credit?
Loans along with guarantors as security may just be your best option to get the cash you need.
Bad Credit Loans With Guarantors Approved
There are many reasons why you may have found yourself in the position of having bad credit and the reason for applying for loans with a guarantor.
By not keeping up to date with other financial commitments it can have a detrimental effect on your credit rating.
When applying for finance lenders look at an individual’s credit score to decide on whether they will be accepted or not.
If you have checked your credit rating recently or have history of late payments or County Court Judgments (CCJ’s) etc., it is likely you will be declined for a standard high street loan.
If you have bad credit and you need a loan you are a higher risk to the provider of not paying back the agreed amount.
Due to this applying for loans with guarantors option is a better option as you are more likely to be accepted.
These loans are similar to personal loans but they require a family or friend to be a guarantor.
This means if you fall behind on the payments it is up to them the guarantor to pay back the remainder of the loan.
Depending on who you are applying with some lenders may ask that selected guarantors are property owners.
There are however non-homeowner guarantor loans available but can be harder to find due to their limited availability.
When applying for loans with guarantors, the elected guarantor will need to have a decent credit history and if they are a homeowner, they should have enough equity in their property to be able to cover the amount you are borrowing.
However, first off the lender will still make sure you yourself are in a position to make the repayments as agreed.
The Good and Bad
A good way of using loans with guarantors and help build a good credit rating, is to stay below your credit limit and ensure you pay the agreed amount on time.
A bad idea is to borrow 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.
If used correctly, you can use this as an opportunity to work on building a better credit rating for your future.
See also Loans with No Guarantor or Fees.