Why Guarantor Loans Are So Popular and How to Get One

There are lots of different options that are available to those who need to borrow money, but guarantor loans offer some unique benefits that the others do not. If you need to get a loan but are still weighing your options, it is important that you at least consider this option and learn about it before making a choice. The type of loan you decide to get is very important for numerous reasons, and guarantor loans are certainly one of the best borrowing solutions available in the UK right now.

They Are Perfect for Those with Bad Credit

If you don’t have a great credit score, a guarantor loan could be an option that will work well for you. These loans are shockingly easy to get for people with bad credit, provided you can find the right person to act as your guarantor. The lender doesn’t really have very high standards for the actual borrower, so you most likely won’t get rejected because of your score alone. This is one of the few solid borrowing options for people with bad credit, and it’s important that you consider this.

No Annoying Borrowing Limitations

You can borrow fairly large amounts with guarantor loans, but it is contingent on your income. This means that you will need to make enough money from your job to get approved for the amount you want. If the lender thinks that you are unlikely to get the money together to pay back your loan on time, your application will be rejected. A lot of loans have major limits on borrowing, but that isn’t the case here. As long as you make enough money, the sky is pretty much the limit.

It’s a Quick Process

There are very few other types of loans available in the UK that allows people to borrow money as quickly as guarantor loans. This is precisely why so many people who need cash right away apply for these loans in the first place. For a lot of people, guarantor loans are the go-to borrowing option.

In fact, you could get cash from one of these loans within a matter of just hours. From filling out the initial application to getting your money, you shouldn’t need to wait more than 24 hours if you are approved. This is assuming that you apply on a weekday, though some people can get these loans on a weekend depending on the lender.

The Lenders

A lot of private lenders offer guarantor loans, and most of them are perfectly reputable. You should invest a decent amount of time in trying to find the right lender for your loan, but there are a lot of great options out there. When you spend enough time doing research into these lenders, you will be able to find one that can give you a good deal. Lots of people in the UK are taking out loans with private lenders for a number of reasons, including how easy it is to get approved when compared to getting a loan from a bank.

Fewer Headaches

Anyone who has ever gotten a loan through a bank knows just how frustrating it can be due to all of the hoops that you have to jump through to get your money. While there are some things you will need to do with a guarantor loan, the entire process isn’t nearly as frustrating or convoluted. Most people who get these loans say that getting their money was relatively simple and painless.

Improve Your Credit Effectively

Most people’s credit scores could use some improving, and getting a guarantor loan can do that rather effectively. If you want to raise your score as soon as possible, you will find that taking out one of these loans can definitely do the trick. You will need to pay your loan back on time though, because otherwise your credit will take a hit. There is almost nothing worse than not paying back a loan for your credit, so you will need to take it very seriously.

Guarantor vs. Co-Signer

Some people confuse guarantors with co-signers, and it is understandable considering how similar the two roles are. A guarantor is someone who agrees to take on the payments of the borrower if they are unable to pay back the loan. A co-signer pretty much serves the same function, but they are not scrutinized as much as guarantors by the lender. In other words, it is more difficult to find someone to be your guarantor than a regular co-signer. The standards are fairly high, but it’s still very possible to find someone in your life who can be a guarantor on your loan.

Applying for a Guarantor Loan

If you aren’t convinced of how great guarantor loans thus far, you’ll also want to take into consideration that applying for them is incredibly easy. You can go online and apply for one of these loans at any time from anywhere, as long as you have an internet-capable device and a connection.

Applying is pretty simple and straightforward, but you should be prepared to provide some detailed personal information. The lender will ask for documentation to prove income and employment, especially for the guarantor. This documentation is a crucial aspect of the application process, and it’s essentially what your approval hinges on.

Is Getting a Guarantor Loan the Right Decision?

You should consider many different things before getting a guarantor loan, such as whether or not you really need the money. Sometimes it’s a better idea to not get the loan if you can help it, because you are always taking a risk. You will also need to find someone you can trust to act as your guarantor, because otherwise you are taking an even bigger risk with your credit. These loans help out many people in the UK each year, but they are not for everyone. Make sure to look closely at your finances before applying so you are sure you can afford the loan.

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