If you’re in a position where applying for borrowing under just your name is not a viable option, you may want to consider applying for guarantor loans direct lenders through us at Personal Loans Now. Designed to help you receive the borrowing you want even if your credit rating is low, the best guarantor loans online can provide you with an instant payout; something that you may have difficulty in getting elsewhere. Some of the many great advantages of applying for instant guarantor loans through us include:
Faster payoutto You
– no waiting around for the credit
Fully Online Applicationd
– 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
So, whatever the reason for needing guarantor loans with a low apr, hit apply now and we’ll get to work on finding you the best rates available. If we can’t lend you the funding directly, then we’ll show you who can; choose Personal Loans Now to compare guarantor loans today!
What are Loans with a Guarantor Online?
Unlike with a regular personal loan, guarantor personal loans provide you with the opportunity to have someone act as a guarantor for the application. This means the nominated person will co-sign the agreement as a backup, so if you struggled to make repayments, they would cover them in an unforeseen circumstance. The benefit of this type of loan is that if you have a poor credit rating and apply for guarantor loans with bad credit, having someone with a good credit score as a guarantor, such as a family member or friend, could mean you still receive the funding you want. In most circumstances, guarantor loans with bad credit are ideal for anyone with no recent credit history or due to a poor credit score, 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?Similarly to unsecured borrowing, guarantor loans involve a primary borrower who nominates a family member or friend to be the guarantor during the loan term. This offers added 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 made, to ensure a guarantor loan is right for your circumstances. If a financial issue arises, the guarantor will be able to make arrangements for repayments and help provide a solution, avoiding any potential further fees or charges.
Who Can I Use as a Guarantor When Applying?
If you’re thinking of applying for a guarantor loan and you’re not entirely sure who is suitable to be your guarantor, 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 also need to be at least over the age of 21 (some lenders may accept someone over a minimum of 18 years of age, but may not be able to accept older than 75 years old)
If the person you have in mind meets all of the above, then they may be suitable as a guarantor for your loan application. During the application, we will determine this further to ensure you and your guarantor are suitable for guarantor loans direct lenders.
Can My Guarantor Have a Poor Credit Score?
As much as we’d like to help you, if your guarantor also has a low credit score then, unfortunately, they won’t be eligible as a guarantor for application. Guarantor loans are tailored to help someone in a poor credit situation, so that means your guarantor will need to have a good credit rating to be eligible. Due to the risk involved and because of our commitment 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 the affordability is clear to see and that by providing you with funding, we are not putting either yourself or your guarantor in a worse position. We check this by performing credit checks as recommended by the FCA, to ensure we meet our commitments and help you in the best possible way.
Can a Guarantor be a Non-Homeowner?
Although it is not a requirement during your application for a guarantor loan, being a homeowner does have its benefits. The good news is, if you and your guarantor are both tenants currently renting a property, 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, meaning 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 can’t find anyone suitable to be a guarantor on your loan application, then this doesn’t necessarily mean you have no further options for borrowing. You can try any of the following as an alternative:
Other Unsecured Borrowing
– Widely available throughout the UK, you may find other suitable lenders who can provide you with the funds, however, the rates of interest will usually be higher.
Speak to your Bank or Building Society
– the company you currently 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.
– an alternative to the banks, you’d need to become a member of the credit union that suits you the best. They can be understanding of your current financial situation and 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, but 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 the primary applicant 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 directly. This way, we can try to resolve the issue without using your guarantor, but if in the rare circumstance you cannot afford repayments, then 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 because there is a much lower risk overall. At Personal Loans Now, our interest rates are between 35.5% – 99%, with the amount of interest you have to repay varying, depending on the amount of the borrowing you apply for. This also 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 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 very seriously and recommend that you also take similar precautions when providing any personal information online. As we are an FCA authorised lender, we are required and follow safety guidelines that are in place throughout the lending process. We will also only connect you with FCA authorised direct lenders, who will also 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 and 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. If your credit history is poor but your guarantor has a healthy credit score, this will help us to find the lowest rates available. Unfortunately, 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 from showing 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.
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. The convenience of using an online personal lender like us is that the application is fully online with a quick decision. With a high street bank, you may have to wait for documents to be posted or even visit a branch, which delays a decision. With Personal Loans Now, we’ll show you what guarantor loans are available to you, at the best rates, meaning you can apply quickly and securely online.
Apply now for personal credit and get an instant decision