Why Get a Guarantor Loan
Getting a loan is really hard especially when you have a bad credit rating history. This actually hinders a lot of people from being able to get a loan because most lending companies do not accept these high risk customers. However, to solve this problem since many of those people who want to get a loan are actually people who have bad credit ratings, then they made new loans that can accommodate these high risk customers. This is in the form of guarantor loans. The guarantor loan is being used in the United Kingdom and it has been said that it has helped many people already especially those who have poor credit ratings.
Guarantor loans are type of loans that need someone to act as a third person. This third person will be the guarantor, who will be the one who will help you get the loan. To apply for a guarantor loan, of course you will need a guarantor. The guarantor can be anyone you want just as long as he or she must satisfy the requirements that a guarantor must be able to possess. This includes a certain age requirement and also a UK bank account. Another thing that a guarantor must possess is a good credit rating.
Although you can have a poor credit rating, the fallback, which is the guarantor, must have a good one so he or she can guarantee that your repayments can be paid when you have failed to do so. This is also why it is important that you need a proof of income, to show that you are capable of paying your needed repayments successfully and on time, to avoid affecting the guarantor’s credit rating and yours as well. It is important that you can show that you will be able to handle the repayments needed so that there will be no problem when getting a loan.
Once approved then you can already get your loan as fast as possible and also, without a hassle. Usually once that the application process has been settled, then one can already use the guarantor loans so that they can now be able to get the money they need. Also, the guarantor loans are better compared to other kinds of loan according to those who use this kind because of its lower interest rate, flexible term, and larger amount of money to be able to loan.
The guarantor loan is good for you when you really need money and if you have a previously bad credit rating. This is because it can also help you to make your bad credit rating to a good one when you are successful with your repayments. This is a good chance to correct your credit rating so you will still be able to get a loan in the future, without much hassle. Apply for one so you can use the money in any way you want, just as long as you have the guarantor needed for this kind of loan.