There are no certainties when it comes to applying for a loan; no one will guarantee to lend money without knowing the particular circumstances of the applicant as to do so would be a much bigger risk than most companies would be willing to make.
If you have a poor credit history, however, you are much more likely to be successful if you apply to a company that specialises in guarantor loans.
Again, these are not guaranteed loans, you will not automatically be approved but your chances are much higher because they do not use your credit rating to make their decision.
You will need a friend or family member to be your guarantor; a co-applicant who will take responsibility for your loan repayments if you are unable.
This person will generally need to be a UK homeowner, although some companies will overlook this, have a regular income and a good credit history.
You will also need to show that you are able to afford the repayments on the loan and that you have not been declared bankrupt.
The typical interest rates on these types of loan are much lower than those you see companies like Wonga offering because the risk to the company is much lower; they know they have someone who can afford the repayments if the borrower cannot.
It is very important, therefore, that the co-applicant understands the implications of their role and they are happy to have this responsibility.
Due to the nature of these types of loan they must not be tied financially to the applicant so a spouse, for example, would not be an appropriate choice.
Generally, loans range from around £500 to up to £12,500 over a term of between 12 and 60 months. Many companies will not penalise you for early repayment so should your circumstances improve you will be able to clear the debt without having to pay any fees.
If you would like to find out how much money you can borrow and the rates you will expect to pay simply fill out a quick online form and our panel of reliable and trustworthy lenders will have offers back to you within minutes.
Return to Guarantor Loans