If you’re not in a position to apply for borrowing under just your name, guarantor loans are worth considering. Applying for guarantor loans direct lenders through us at Personal Loans Now is a great option if you have bad credit. We can help you receive the loan you want even if your credit rating is poor. The best guarantor loans online can provide you with an instant payout. This is something that you may have difficulty in getting elsewhere. Some many great advantages of applying for instant guarantor loans through us include:
Faster payout to You
– no waiting around for the credit
Fully Online Application
– Apply online for same day guarantor loans with no paperwork required
Low APR Rates
– we’ll find you the best rates available for guarantor loans with an instant payout and low APR
Ideal for Poor Credit Applicants
– Bad Credit Guarantor loans can help with a poor credit score
Whatever the reason for needing guarantor loans with a low APR, click apply now, and we’ll find the best rates for you. If we can’t lend to you directly, then we’ll show you who can; choose Personal Loans Now to compare guarantor loans today!
What are Loans with a Guarantor Online?
Guarantor personal loans provide you with the chance to have someone act as a guarantor for the application. This means the nominated person will co-sign the agreement as a backup. If you struggled to make repayments, they would cover them in an unforeseen circumstance. The benefit of this type of loan is if you have a poor credit rating, applying for guarantor loans with bad credit. A guarantor with a good credit score can be a family member or friend. This can mean you will still receive the funds you want. In most circumstances, guarantor loans with bad credit are ideal for anyone with no recent credit history. Or, if due to a poor credit score, you want to start to improve it. At Personal Loans Now, we can look to assist or find a lender who is best placed to help.
How Do Guarantor Loans with Instant Payout Work?Guarantor loans involve a primary borrower who nominates someone to be a guarantor. This adds loan security in the eyes of the lender, as it lowers the risk involved with providing you with credit. It also benefits you as you can apply for funds that otherwise wouldn’t be obtainable alone. However, we still ensure that the correct affordability checks are carried out. This is to ensure a guarantor loan is right for your situation. If a financial issue arises, the guarantor will be able to make arrangements for repayments. They will help provide a solution, avoiding any potential further fees or charges.
Who Can I Use as a Guarantor When Applying?
If you want to apply for a guarantor loan, you’ll need the right guarantor. If you’re not sure who is suitable, you will need to consider the following:
- You can choose a close relative, personal friend or co-worker
- A guarantor cannot be a spouse or someone you share a joint bank account with
- The guarantor must be in current full-time employment
- They should have a good credit history
- They need to be at least over the age of 21. Some lenders may accept someone over a minimum of 18 years of age. But they may not be able to accept older than 75 years old.
If the person you have in mind meets all the above, they may be suitable as a guarantor. During the application, we will determine suitability further. This is to ensure you and your guarantor are suitable for guarantor loans direct lenders.
Can My Guarantor Have a Poor Credit Score?
If your guarantor has a low credit score then, unfortunately, they won’t be eligible as a guarantor. Guarantor loans are tailored to help someone in a poor credit situation. That means your guarantor will need to have a good credit rating to be eligible. We are committed to responsible lending. We would not be able to lend to someone with a poor credit score if the guarantor is in the same position. During the application, we need to ensure that your affordability is clear to see. By providing you with funding, we do not want to put either yourself or your guarantor in a worse position. We check this by performing credit checks as recommended by the FCA. This ensures we meet our commitments and help you in the best possible way.
Can a Guarantor be a Non-Homeowner?
It is not a requirement for a guarantor loan, but being a homeowner does have its benefits. The good news is, if you and your guarantor are both tenants, you can still apply for guarantor loans with instant payout. However, you may find that the best rates are only available for those who are homeowners. This means guarantor loans for non-homeowners may be more expensive if neither of you owns your own property.
What Can I Do If I Can’t Find a Suitable Guarantor?
If you don’t have a suitable guarantor on your loan application, this doesn’t mean you have no further options. You can try any of the following as an alternative:
Other Unsecured Borrowing
– Widely available throughout the UK, you may find other suitable lenders. They may provide you with the funds, however, the rates of interest will usually be higher.
Speak to your Bank or Building Society
– the company you bank with may be able to offer a good option. Tailored to your current circumstances, speak to them if you haven’t already explored this option.
– these are an alternative to the banks. You’d need to become a member of the credit union that suits you the best. They can empathise with your current financial situation. They can also help where others can’t as they are a not-for-profit organisation.
– you may be able to find a company willing to offer a low rate credit card. Keep in mind that if your credit rating is poor, the rates may still be higher.
Guarantor Loans Direct Lenders FAQs
How Do Repayments Work With Low Interest Guarantor Loans?
Repayments work similarly to other forms of borrowing with guarantor loans. The primary applicant would be responsible to make the agreed repayments. The instalments agreed during application will need to be fulfilled by you on the dates agreed. But, if for any reason you enter difficulty in making these repayments, we would first ask you to contact us. This way, we can try to resolve the issue without using your guarantor. But if in the rare circumstance you cannot afford repayments, your guarantor will be contacted to do so instead.
Why Are Guarantor Loans Cheaper?
Guarantor loans tend to be cheaper than other forms of unsecured borrowing. This is because there is a much lower risk overall. At Personal Loans Now, our interest rates are between 35.5% – 99%. The amount of interest you have to repay varies, depending on the amount of borrowing you apply for. This depends on you and your guarantor’s credit report and affordability. For example, if you borrow £10,000 for 24 months, 24 monthly repayments will be required of £578.37. The total amount to repay will be £13,880.88, with the interest rate p.a. (fixed) at 39.7%. Representative APR would be 39.7% and you can choose to repay cheap guarantor loans early. This can help if you do want to save on the total amount of interest in total.
Is it Safe to Apply Online for Guarantor Loans with a Low APR?
We take the security of customer information seriously. We recommend that you also take similar precautions when providing any personal information online. As we are an FCA authorised lender, we are required to follow safety guidelines. These are in place throughout the lending process. We will only connect you with FCA authorised direct lenders. They will ensure that your personal information and data is kept safe and confidential at all times.
Can I Get Low Interest Guarantor Loans with no Credit Check?
Depending on your current circumstances, you can receive guarantor loans with a low rate of interest. These will be lower than you will find with payday loans. At Personal Loans Now, we will show you the best rates available for you so that you can make an informed decision. The better your credit rating is, the better the rates available to you. When your credit history is poor, your guarantor has to have a healthy credit score. This will help us find the lowest rates available. We cannot process an application for homeowner or tenant guarantor loans without a credit check.
Can a Guarantor Loan Help Improve My Credit Score?
Yes, if you have a poor credit score and are approved for a guarantor loan. This can help build up your credit rating for the long term. As long as you meet the agreed repayments on time, your credit score will benefit. It will show a continued and, eventually, completed loan agreement. Small guarantor loans are a great way to help build up your credit score. If you currently do not have the eligibility alone to apply for borrowing, they are ideal.
Is It Better to Have Bank Guarantor Loans or one from a Personal Loan Lender?
There are many ways to apply for guarantor loans, with most high street banks offering them as well as online lenders. Using an online personal lender is convenient. The application is fully online with a quick decision. With a high street bank, you may have to wait for documents to be posted. Sometimes you may need to visit a branch, which delays a decision. With Personal Loans Now, we’ll show you what guarantor loans are available to you online. At the best rates, you can apply quickly and securely online.
Apply now for personal credit and get an instant decision