Guarantor Loans – A Helpful Solution
Having trouble borrowing money on your own with a bad credit score? Want to boost or improve your credit rating?
Our Guarantor loan could help. Borrow up to £25,000, in your own name, by asking a friend or family member to guarantee that you’ll make necessary monthly repayments. Apply online and, once your loan and your guarantor is approved, the money will be transferred into your bank account within 24 hours.
A Guide to Guarantor Loans
Guarantor loans could be an option for those with bad credit or a poor credit history, who find it difficult getting approved for cheap personal loans. However, when taking a guarantor loan with bad credit as a non-homeowner it’s worth noting that you could end up paying quite a bit more than the sum you originally borrowed in interest, on top of your monthly repayments.
Guarantor Loans Availability and Interest Rates
The annual percentage rate (APR) of interest on guarantor loans will vary depending on the lender, the term period and the size of the loan. You can get guarantor loans with low apr by comparing loans. There are many compare tables available online where you can filter results to only see guarantor loans, or you can see them alongside various other options such as personal, secured or car finance loans.
Lately, there have been limited guarantor loan choices. Recent research shows that out of 126 personal loans listed on the matrix of independent financial researcher Defaqto only seven were guarantor loans. Guarantor loans with low interest are still available with bad credit because the guarantor element makes lending far less risky.
Do you Qualify for a Guarantor Loan from Personal Loans Now?
- You must be a UK citizen and hold a UK bank account
- You must be at least 18 years of age
- Whether you’re employed with a regular salary, self-employed or unemployed, you can still apply
Criteria for Guarantors
- Must be over the age of 21 with a good credit profile
- A UK citizen and hold a UK bank account
- Can’t be financially linked to the person taking the loan (e.g.spouse)
- Whether the guarantor is a UK homeowner or non-UK homeowner they can still apply
If the guarantor is a UK homeowner, they may be able to borrow a larger amount
However, be aware that some guarantor loans will be secured against the guarantors property, so if you and your guarantor struggle with paying back the loan there’s a risk that the guarantor’s property will be repossessed. Becoming a guarantor isn’t a decision that should be taken lightly. The guarantor has to believe that the person taking the loan will make their monthly repayments because if they can’t, the guarantor will be the one to repay the loan. The guarantor can check whether the person taking the loan requires the money and for proof that they have the means to pay back the loan.
Guarantor Loans and your Credit Score
If the repayments are made regularly and on time a guarantor loan could be a way of improving a bad credit rating or could help to build up one from scratch. Take into account that a guarantor loan term can span up to 5 years. If you think that you will not be able to commit for so long, it may be a good idea to opt for an unsecured form of borrowing instead as it carries less risk, although the price will be higher.
If you’re taking out a guaranteed loan with a guarantor, an income protection insurance product may prove to be very useful. This type of policy can cover your monthly repayments if you can’t make them due to sickness, an accident or unemployment. Obviously, if you don’t make your monthly repayments you will be charged additional interest and this can damage your credit score.
What are the Advantages of Using a Broker when Taking a Guarantor Loan?
- You have a bigger chance of getting approved for the loan because your application is sent to many direct lenders.
- You may receive a faster service from a broker, as you do not have to go back and forth between lenders until you’re approved.
- Bigger range of products – a broker has access to many lenders who offer a wider variety of amounts and time periods.
Learn more about Borrowing Guarantor Loans
Can I apply for same day guarantor loans at no extra charge?
Yes! We will not charge you a penny when you apply with us. And our credit on demand scheme gives you a higher chance of being accepted. If we personally cannot provide you a loan, we will do our best to get you a loan from other Monevo’s associated direct lenders. Please note, each lender has their individual charges that they may have on the loans with a fast payout that they offer. If you are approved, you can decide whether you want to take the fast guarantor loan or not.
Are online only guarantor loans available?Yes, you can apply for guarantor loans all online with no paperwork involved right here at Personal Loans Now. Our online application just takes a matter of minutes to complete and you will receive an instant decision.
What are the Alternatives to Guarantor Loans?
If you need a guarantor loan, but you’re worried about your poor credit score, guarantor loans are not the only option available.
- Speak to your bank or building society – Your current financial provider may be able to offer a good credit option tailored to your circumstances. Sometimes, all you have to do is ask!
- Credit unions – Credit unions offer a real alternative to banks for those who are looking for credit outside of the traditional methods. To qualify, you’ll need to become a member of the credit union you are interested in borrowing from. These institutions are also more understanding and supportive of those in financial difficulties as they are not-for-profit organisations with the sole purpose of helping their members.
- Credit cards – If you’ve been declined a credit card with your own bank, it doesn’t mean you can’t still apply for a credit card with other banks or building societies. Keep in mind that if you have poor credit, it may be difficult finding a worthwhile credit card deal, but there are cards dedicated for people with bad credit.
We always encourage you to research all your options before signing any agreement. In some cases, Personal Loans Now guarantor loans may be the perfect option for you.
Apply now for a guarantor loan with a same day payout for any loans up to £25,000 from our extensive panel of FCA direct lenders.
Help and Advice…
If you are faced with a long term financial problem and you’re not really sure what loan is best for you, you can seek financial advice from your local Citizens Advice Bureau, StepChange Debt Charity or National Debtline. If you are having difficulty obtaining money through mainstream lenders, you should not, under any circumstances borrow from loan sharks.
Guarantor loans from Personal Loans Now
Whether you decide to apply for a loan with or without a guarantor, Personal Loans Now can help! Apply now for a loan of £2,000 up to £25,000. If we can’t help you as a direct lender, we’ll work with Monevo to scan over 50 authorised lenders in the UK for the best loan for you. Don’t let a bad credit score stop you – apply now and you could get your money today!