Guarantor Loans – All That You Need To Know

Guarantor loans are an alternative form of borrowing money and are helpful for people who have difficulty in obtaining other form of credit. This is a form of unsecured loan which implies that none of the assets of the borrower are used as a security against obtaining a loan. In order to prevent any form of missed payments to the lender, the loan is supposed to be backed by a third person who would repay the loan amount if the borrower is unable to do so.

Guarantor loans are suitable for people who don’t have a good credit score or have a record of bad credit. By borrowing a guarantor loan and by making payments on time, the borrowers can rebuild their credit.    

Who is a Guarantor?

A guarantor could a family member or a friend who trusts you entirely so that you could be backed by them while applying for a loan that is unsecured. They will have to agree to repay back the loan amount borrowed by you if you fail to make any repayments. Not everybody you know would be able to be your guarantor. People really close to you can opt to help you out and be your guarantor.   

If you think you can easily get a guarantor then it wouldn’t be difficult for you to procure a guarantor loan. Though you are being backed by a guarantor, the loan would be in your name. Successful repayments will significantly affect your credit in a positive way. Your credit history becomes irrelevant while you are trying to procure a guarantor loan. If you have been denied loans by traditional lenders all you need to do is find a guarantor and procure guarantor loan to end your financial loans.

Why is a guarantor needed?

A guarantor is needed when you do not have a good credit history. Procurement of a loan becomes easy when you have somebody to back up the repayment of your loan instalments. A credit score is looked into when you try to obtain a traditional unsecured loan. This helps in analyzing the risk associated in lending you the loan amount. A lender will agree to ignore your bad credit history if you have an acceptable guarantor backing you.

Will a credit check be done?

Few lenders carry out a credit check while lending for identity purpose and to check whether the borrower is bankrupt or not. The credit check wouldn’t be used to judge whether a loan amount should be lent to a person or not. A computerized risk calculation wouldn’t determine whether you should be lent money or not. A guarantor supporting you application is all that is needed to clear a guarantor loan application.

How can one get a guarantor loan?

Those willing to procure a guarantor loan can go to Guarantor Lender to compare to know the kind of services offered by the company. A quick form needs to be filled by the applicant and the team gets in touch in a very short span of time. Instant information of offered about the interested lenders.