If you are looking at guarantor loans as a solution to your financial problems it is likely that you have a poor credit history or have been refused more conventional loans. The advantage of these loan providers is that they use the circumstances of both the applicant and the guarantor to make their decision.
A friend or family member is usually the best person to ask to be the guarantor of a loan and they will need to be at least 18 years old and have a good credit history. Depending on the loan provider they can be either a homeowner or a tenant and do not need to be employed. They will, however, need to show that they are able to afford the loan repayments if the borrower were to default for any reason. A spouse would not be eligible as they must not be financially dependent on you.
The applicant should be able to show that they can afford the monthly payments and not have been declared bankrupt or subject to an IVA. Contrary to what you might expect, if you are a tenant guarantor loans are still available from many lenders. Some may insist you are a homeowner but this is not always the case.
It is possible to borrow between around £500 and £7500 although some companies offer up to £12,500. The normal borrowing term ranges from 12 to 60 months and early repayments are possible in most cases without incurring additional fees.
Another benefit of a guarantor loan is that every time you make a repayment you are improving your credit rating so at the end of the loan term you should be in a better position to be able to apply for more conventional lending.
To find out more about how much you can borrow simply fill in our online form and our lenders will have offers back to you within minutes.
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