If you have ever been refused a loan due to a poor credit history you will know how difficult it is to find an affordable solution. Very short term ‘payday’ loans can be disastrously expensive while traditional loans are simply unavailable.
A guarantor loan could be the solution to your problems. Unlike conventional loans they do not rely on your credit history to calculate your risk but rather that or a co-applicant. The idea is that you ask a friend or family member to act as the guarantor on your loan application and it is their credit rating that the companies involved will take into account. Guarantor loans, therefore, offer a much lower APR than other finance solutions for poor credit.
Loans of between £500 and £7500 are usually available with an APR of around 50% depending on the lender. This is compared to high profile ‘payday’ loans companies who charge anything up to a staggering 6000%. It should be noted, however, that guarantor loans are designed small loans borrowed for a longer period of time; generally between 12 and 60 months, whereas ‘payday’ loans are only meant to be a very short term solution to a cash flow problem. It is when the loan is not paid back almost immediately that the problems start.
If, however, you need money for a larger purchase such as a car or home improvement a guarantor loan is a much more affordable solution. As long as an adult with a good credit history is prepared to support your application you should have no problems unless you have been declared bankrupt or are subject to an IVA. Many companies are happy to lend money whether you are a homeowner or not so they really do offer a solution for all.
To find out more about the affordability of these loans simply fill in our online form and in a matter of minutes we will have offers back to you.
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