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. We are proud to offer high acceptance rates, helping 50,000 applicants just like you. The best guarantor loans online can provide you with an instant payout. This is something that you may have difficulty in getting elsewhere. Some of the 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. Whether you are on income support or other benefits, we can look to help. We’ll show you a personalised list of the best rates on the market for you to choose from. 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 jointly co-sign the agreement as a backup. If you struggle to make repayments, they would cover them instead of you. If you have a poor credit rating, applying for guarantor loans with bad credit could help you get the funds you want at a decent interest rate – which you might not get on your own merits. A guarantor with a good credit score can be a family member or friend. In most circumstances, guarantor loans with bad credit are ideal for anyone with no recent credit history. If you have a poor credit score, you may want to start improving it before applying for a loan. This way, you may be able to avoid needing a guarantor altogether. At Personal Loans Now, we assist you in finding the 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 available to you on your own. However, the lender you choose will still perform the correct affordability checks to ensure that you can afford the loan as well as to check that 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. This doesn’t mean your loan is guaranteed. Each lender on our panel has their own requirements for guarantors, and they will further screen your guarantor during the application process to ensure that you and your guarantor are suitable for guarantor loans from 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. All of our lenders are committed to responsible lending, and would not be able to lend to someone with a poor credit score if their guarantor is in the same position. Lenders need to clearly see your affordability during the application process. We do not want to put either yourself or your guarantor in a worse position by providing you with funding. That’s why each lender performs comprehensive credit checks and affordability assessments as per FCA guidelines before funding any loan. This way, lenders ensure they can meet their commitments and help you in the best possible way.
Can a Guarantor be a Non-Homeowner?
Yes. Owning a home 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, there are still other options available to you. 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 and potentially help where others can’t as 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, the lender would contact you first. This way, we can try to resolve the issue without using your guarantor. In the rare circumstance you cannot afford repayments, your guarantor would be contacted to make the repayments.
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. The amount of interest you have to repay will vary, depending on the amount you want to borrow. Your credit score and affordability assessment, as well as your guarantor’s credit report will influence how much you can apply to borrow.
Is it Safe to Apply Online for Guarantor Loans with a Low APR?
We take our customers’ information security seriously. We recommend that you also take similar precautions when providing any personal information online. The Financial Conduct Authority requires lenders to take security measures throughout the loan process to ensure their customers’ safety. We will only connect you with FCA regulated direct lenders who 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. Our lenders cannot process applications for homeowner or tenant guarantor loans without a credit check as this is a safety precaution for our customers’ benefit.
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 in the long term. As long as you meet the agreed repayments on time, your credit score will benefit. Paying back a guarantor loan responsibly shows lenders that they can trust you to borrow credit safely. Small guarantor loans for self-employed applicants are a great way to help build 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 with the best rates that are available to you online. With one application, you can see all your options quickly and securely choose your guarantor loan online.
Apply now for your personalised list of credit options to choose the best loan for you today!