Are guarantor loans the best option for you?

[Trista Barnhart]

They offer a great solution if you have bad credit, who would normally be unable to get yourself a loan. Guarantor loans aren't payday loans, the interest is a lot lower and you will not be charged any in advance o-r layout costs.

If you have a poor credit score or have been refused by other creditors, then guarantor loans could be the right choice for you. A guarantor loan also enables you to use a higher quantity than you would be able to with other types of loans targeting people with weak credit. It is also possible to restore your credit score by indicating that you are a sensible debtor and are in a position to make the payments on time.

Firstly like all loan programs, you must be over 18 years old and have a UK bank-account where the repayments can be collected. You will still have to show that you can spend the money for re-payments and that you're capable of paying the loan back-in an appropriate fashion.

Awareness is more than likely the place where a good credit rating will become necessary to be higher than that loan. The APR of guarantor loans differs depending on the business, but the APR is usually around 5-0 %. It's important to remember that although this really is relatively large, it does characterize the risk undertaken by the bank.

Very nearly everyone could act as your guarantor, provided that they're perhaps not financially connected to you (i.e. spouse). A guarantor could be a member of the family, friend if not work friend. For the guarantor to be accepted they'll usually have to be more than 21 with a good credit rating and also be a UK property owner. Checks on-your guarantor usually are similar to standard credit checks - they'll need certainly to present proof-of ID and bank statements, bank details. More at weblink.