GUARANTOR LOANS

Written by Dwight Schrute - Independent Finances

A guarantor loan is an old fashioned process of issuing loans based on trust between the lender and the borrower. It simply requires a person who can be trusted such as a friend, a family member, a colleague or a neighbour to guarantee it. The aim of a guarantor is to vouch that you will make payments and can also pay incase you fail to pay up. Guarantor loans in the UK have become a common practice nowadays as lenders are no longer depending on credit scores, credit history and employment details to issue a loan.


Features of a guarantor loan.

1. It Is Based On Trust

The lender does not request for any deposits or previous credit history to issue the loan and depends purely on a guarantor's word and mutual trust that you will pay the loan.

2. Fast Pay Outs


Guarantor loan in the UK mostly takes 48 hours to be approved if your lender has received your information but it can also take a few minutes.

3. Simple Requirements

For one to be eligible for this loan, they must attain the following:

- Must be 18 years old

- Must have a valid UK bank account

- Must have a valid UK debit card

- Must not have an existing bankruptcy order

4. No fees

There are no fees charged on guarantor loans in the UK while processing or after early or late payments as a means to attract borrowers.

5. Flexible Payment Plans

A lender ensures your loan repayment is affordable and can be paid through direct deposit, cash, online or through a debit card.

Before you take up a guarantor's loan, always consider the following:

1. Interest rates

2. Repayment periods

3. Your eligibility to qualify.

4. Eligibility of your guarantor

Guarantor loans are an easy and fast way to finance individuals. However, despite the minimum requirements, guarantor loans in the UK are expensive due to the interest charged.

↑  Find out more about what it means to be a Guarantor  ↑

NEWS BULLETIN

BEING A GUARANTOR

Guarantors may be a homeowner, a tenant, living with parents or friends and must be at least 18 years old. The guarantor cannot be financially linked to the borrower, for example, spouses. Becoming a guarantor is a big responsibility and should be considered carefully before entering a financial agreement. The Citizen’s Advice Bureau advises anyone interested in becoming a guarantor to ask themselves why does the borrower need a guarantor, is the borrower responsible and is the loan a smart decision?

It is best to seek legal advice before agreeing to be a guarantor.

10 february 2018

BENEFITS OF GUARANTOR LOANS

Guarantor loans are primarily targeted at individuals with poor credit ratings and can be extremely beneficial for someone who needs funds but does not have the appropriate means to obtain what they need. For example, a less than perfect credit rating or minimal credit history. One of the significant advantages of choosing a Guarantor loan is that your application or request tends to be viewed as less risky by any possible lenders or business’ as you have a third-party to help assist with the finances.
The fall-back of a Guarantor to appease payments if anything were to happen, allows lenders more flexibility in offering a loan. Plus, you can borrow a higher amount than you would be typically be provided with poor credit.

10 march 2018

BORROWING A GUARANTOR LOAN

Guarantors may be a homeowner, a tenant, living with parents or friends and must be at least 18 years old. The guarantor cannot be financially linked to the borrower, for example, spouses. Becoming a guarantor is a big responsibility and should be considered carefully before entering a financial agreement. The Citizen’s Advice Bureau advises anyone interested in becoming a guarantor to ask themselves why does the borrower need a guarantor, is the borrower responsible and is the loan a smart decision?
It is best to seek legal advice before agreeing to be a guarantor.

19 FEBRUARY 2018