Guarantor loans in UK are generally for people who have bad credit history. The guarantor loans are by far the easiest of loans to avail of, since all it requires, is someone to sign a guarantee that they will stand as a guarantor for you, in case something goes wrong. Guarantor loans can be availed of from most banks and is the best option when trying to attain a large amount of money, as in the case of buying a house or another such endeavour.
They are also rather simple to understand, and as long as you have someone to stand in as a guarantor, there isn’t anything else to worry about. There are benefits as well as drawbacks (as with anything in this world) with these loans. Here is why guarantor loans in UK may suit your needs:
Why use a guarantor?
- There is no credit check involved with this kind of guarantor loans in UK, simply because another person is going to be your guarantor in case there are problems, when it comes to the repayment of the loan. All the credit checks and background checks will be done on the creditor, so they will have to pass that test in order for you to be able to take the loan.
- This kind of loan will help the borrower improve the credit standings, if he pays back the correct amount within the time frame allotted. This will help you attain other kinds of loans in the future that do not require a guarantor of any kind. This loan will appear on your credit file like any normal loan and you can begin to rebuild a once damaged credit score.
- This is also one of the cheapest loans you can avail of in regards to the rate of interest that you will have to pay back. As there is the guarantee on the lender’s part that the amount that is offered as a loan, will be repaid positively either by the borrower or by the guarantor, the rate of interest is quite less.
- There is no collateral involved with guarantor loans in UK. Hence you will not have to surrender any property or assets if you default on a payment. However, this will again affect your credit score badly and it will be difficult getting loans in the future.
- The guarantor benefits from this by being able to help a family member or friend in dire need. This is a rather kind deed and says a lot about the person and the trust shared between the two of them.
Let us help you!
At Guarantorlender.com website you can have all your doubts clarified with our guarantor calculator that will help you establish how much you need, how much you will be able to avail of once we have all the details and how much interest you will have to pay as well. This will keep you well informed when you go to avail of this loan. So why wait? Get started on that loan immediately.