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55 QUESTIONS ANSWERED
LAST UPDATE 27.06.2018

Frequently Asked Questions - Guarantor Loans

Q: Do I need a guarantor for debt consolidation loans?

In general, debt consolidation loans with a guarantor will be cheaper than without. However, many lenders will still offer you a debt consolidation loan without a guarantor, even if you have bad credit. You can apply with Personal Loans Now for thebest debt consolidation loans for bad credit with or without a guarantor.

Q: Why might my guarantor be declined?

There are a variety of reasons why a lender wouldn't accept someone as a guarantor, but the most common is if their credit rating doesn’t meet the lender's criteria. This is most common if someone is a non-homeowner guarantor. Since it will be their responsibility to make the monthly loan payments if you did not, and they do not own a home that could be used as security, their credit history is a very important factor. By looking at their credit score, we can see if they have managed to keep up with their own bills in the past and helps us assess if they would be a suitable guarantor. If they have a poor credit history and are not a homeowner, they will likely be declined as a guarantor.

Q: What should I do if I cannot find a guarantor for my loan?

If you are struggling to find a guarantor for your loan, it's important to ask yourself whether taking out a loan is your best option. It may be a wise idea to seek financial advice from a body like the Citizens Advice Bureau or a debt charity like StepChange who offer free and impartial advice. If you decide to go ahead with applying for a loan, Personal Loans Now may be able to help you find personal loans for bad credit with no guarantor. Apply today for a fast decision.

Q: Who can become a guarantor for a personal loan?

There is a large number of people who can act as a guarantor for a personal loan. Your bank will accept individuals not financially linked to the applicant, i.e. the guarantor shouldn't be your partner, spouse, or anyone with whom you might share a joint bank account. You can ask a work colleague, an employer, a parent, asibling or a friend to act as a guarantor. In most cases, a guarantor also must be over 21 and have a good credit record. Some lenders require the guarantor to have a minimum monthly income, which vaires with the different lenders. Other direct lenders insist that guarantors must be homeowners, but there are many who will accept non-homeowners as well. Guarantor loans for bad credit aren't secured on the property of the guarantor, so there is no chance of the home being repossessed. Nevertheless, lenders will feel more secure with a guarantor who they can see is well-placed to make repayments on your behalf, should the need arise.

Q: Who can apply for a guarantor loan?

Anyone can ask for instant guarantor loans. Most financial organisations are happy to lend money for a large purchase as long as the guarantor is suitable. To add to this, younger people may be more successful securing a mortgage for their first home if they were to come up with a guarantor.

Q: What are guarantor loans?

Guarantor loans are a kind of unsecured loan. The guarantor acts as a co-signer on the loan with the borrower and agrees to undertake the loan repayments if the borrower defaults on the loan. Having a guarantor co-sign on a loan is a well-established practice that lenders have used for hundreds of years. The guarantor lowers the risk of lending for the creditor, which is why guarantor loans can have overall lower interest rates than other types of unsecured loans. Many landlords ask young or new tenants for a guarantor, and some mortgages still require applicants to have a guarantor as well.

Q: Are instant guarantor loans online safe?

When looking for instant guarantor loans online, you want to keep yourself and your information safe. All FCA authorised and regulated lenders are required to follow safety guidelines that are in place throughout the lending process. If you are looking for a safe lending experience, try Personal loans Now! We only connect you with FCA authorised direct lenders. You can rest assured that all your confidential information will be kept safe.

Q: Do you offer low rate guarantor loans?

Yes! Guarantor loans have rates that are lower than those for payday loans. So, anyone who is having trouble getting accepted for unsecured personal loans by traditional methods will have an easier time applying for guarantor loans. At Personal loan Now, we can help you obtain low rate guarantor loans from our extensive panel of authorised lenders.

Q: Is it better to get a guarantor loan from a personal loan lender or a bank?

You can find guarantor loans at your local bank as well as from an online lender. The role of a guarantor in a bank loan is very similar to their role in an online guarantor loan, with the exception that when using a bank guarantor loan, you will normally need to physically visit the bank with your proposed guarantor. Guarantor loans from a high street bank can be more bothersome, which is why Personal Loans Now are here to help you obtain guarantor loans completely online, working with Monevo's panel of authorised personal loan lenders.

Q: Can I get guarantor loans from Personal Loans Now?

Yes, Personal Loans Now can get you same day loans with or without guarantors. Looking for guarantor loans with low APR? We will work with Monevo's panel of lenders to give you a personalised table of lenders providing same day loans with a guarantor in the UK, including non-homeowner guarantor loans and tenant guarantor loans. You can easily compare rates and loan terms and choose the right guarantor loan for you – quickly and easily.

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