A guarantor loan can be incredibly beneficial for many people, and it’s important that you take the time to see what it can possible offer you. The more you learn about these loans, the better of a decision you will be able to make. If you need some extra money for an important expense, this type of loan might just be exactly what you need.
What is a Guarantor Loan?
First of all, a guarantor loan is basically just an unsecured loan that requires a person or “guarantor” who agrees to take over the payments if the primary borrower is unable to at any point and for any reason. These days more and more people are taking out these loans because of how incredibly helpful they can be.
They are available to people with bad credit
One of the most attractive things about guarantor loans is the fact that they are available to those with bad credit. As long as the person who you choose as your guarantor has good credit, you will have nothing to worry about. If you have had difficulty with getting approved for loans in the past because of your credit, you will definitely want to look into this option because of everything it has to offer.
There’s no borrowing limit
Another thing to consider about guarantor loans is the fact that there is no limitation to borrowing. As long as you have a guarantor with good credit, you won’t have to worry about being limited when it comes to the amount of money you will be able to borrow. You will almost certainly be able to borrow a large amount of money if your guarantor is a home owner. This can be incredibly beneficial if you require a large amount of funds for some sort of big project. The better your guarantor is in terms of their credit, income and assets, the more you will be able to borrow.
The Process is Fast
You will discover that the whole process for guarantor loans is very quick, so you should be able to get the money you need fast if you are approved. The approval process itself is also very quick, meaning that you won’t have to worry about waiting a long time to find out whether or not your application has been approved.
Guarantor loans are definitely known for being flexible, as the amount you borrow and the amount you can repay ultimately determine the terms of repayment. This is why not many people have difficulty paying off their guarantor loans at all. A lot of people are afraid to get certain types of loans because they are afraid they might not be able to pay them back, but with guarantor loans it isn’t such a big deal.
There are far fewer problems with guarantor loans than other kinds, so you will need to keep that in mind as well. Statistics collected by Citizens Advice revealed that five hundred problems were received from guarantor loans between 2012 and 2015, compared to the 29,000 problems that came from other types of loans. This means that you won’t have to worry about facing the same kinds of difficulties and issues that you might with other loan products.
A Safety Net
Guarantor loans can act as a safety net for those who are unable to pay back the loan they take out, because the person who acts as the guarantor will be responsible for paying it. This means that you won’t have to go deep into debt yourself if you are unable to pay back your loan for whatever reason.
The fact is that guarantor loans are a great option to consider, especially for those who are in a tight financial situation and need assistance. There are many different types of loans that you can take out, but not all of them will be able to provide you with the same great terms and benefits. If you are currently looking to get a loan, you will definitely want to make a point of seeing what guarantor loans have to offer. In the end you will be glad you decided to do this research.