At the time of requirement of funds, you need them immediately. The usual source is your own savings or help taken from friends and family. Sometimes, both these options are not available. In such circumstances, you can fulfil your needs by using affordable guarantor loans at a lower rate.
A guaranteed loan allows you to borrow using a third party that is a guarantor, particularly when you have a bad credit score. Due to individualised loan offers, instalments and interest rates are affordable. You can borrow through an online loan procedure. It is both convenient and also fast.
At 24loanswales, we provide approval decisions based on the joint repayment capacity of the borrower and the guarantor. This is what makes the guarantor personal loans attainable on flexible terms of loan amount and tenure. Apply now and get money when you need it most.
A guarantor loan is a type of long-term loan solution in which the third party, i.e. the guarantor, plays the most important role. Borrowers with no credit history or limited credit history mostly resort to these loans.
The presence of a guarantor allows the borrower to borrow a large amount at a lower interest rate. The presence of a third party allows for mitigating the risk of late payments. The guarantor is likewise responsible for paying the loan.
If you, as a borrower, fail to pay timely instalments, the guarantor bears the legal responsibility. Guarantor loans online offer better terms than conventional loans.
DID YOU KNOW?
Guarantor loans can be unsecured or secured but unsecured loans are most common.
- Are guarantor loans cheaper than unsecured loans in the UK?
On many occasions, guarantor loans prove more expensive than unsecured loans. The primary reason is that guarantor loans are suitable for those with bad credit scores, and therefore, lenders minimise that risk by keeping slightly higher interest rates. On the other hand, unsecured loans are more favourable for those with fair or good credit scores. Loan providers can trust them, and therefore, they don't need collateral. Consequently, they keep interest rates on the competitive side.
- How long does it take to get a guarantor loan in the UK?
The approval decision for your loan application does not take too much time. We can give acceptance within 15 minutes, and on the same day, you will receive the desired funds in your bank account. Sometimes, delays can happen, but we will keep informing you of this.
- Can I repay a guarantor loan early in the UK?
You can make early repayment of a guarantor loan, and by doing this, you can save plenty of interest rates. You can repay in full or in part, depending upon your capacity. We also back you by not charging any early repayment fees. Close the loan faster and boost your credit score.
Many of our borrowers ask who can be a guarantor for their loans. Therefore, if you are applying for guarantor loans, your guarantor must fulfil the conditions given below. Only through the following parameters can one make a third party your guarantor.
Age-A person below 18 years of age cannot become a guarantor. This is the minimum age criterion. Therefore, keep the age criteria in mind before making someone your guarantor.
Financial stability-Only a financially stable person can become a guarantor. This includes individuals with a regular income. Apart from this, it is also important to have an ideal debt-to-income ratio and good conditions.
Residency proof-Any person who lives outside the country cannot become your guarantor. That is why the guarantor must have proof of residency as the approval decision comes accordingly.
Relationships with the borrower -Lenders accept guarantors who have a close relationship with the primary borrower. Usually, family members or close friends act as a third party. Any random person becoming a guarantor can affect the approval decision.
Certain circumstances do not allow an individual to act as your guarantor. You must know about these before applying for this loan solution.
WHY GUARANTOR LOANS ARE POPULAR ?
Some specific features of a guaranteed loan give you an idea of its uniqueness. Knowing about a loan before applying for it helps you make a rational decision.
If you want to get guarantor loans at low APR, you need to know the features of this loan solution.
The above features make these loans a speedy option to obtain funds. For all those looking for guarantor loans on same-day payouts, applying for this option is a wise decision.
Loans with guarantors have plenty of benefits, especially for those with poor credit scores. Still, they have some significant risks, too. These risks are for both the borrower and the guarantor.
Risks for the Borrower
Risks for the Guarantor
An important suggestion: 24loanswales suggests its borrowers apply for guarantor loans when no other option is there. Besides, both borrowers and guarantors must understand the loan norms carefully.
A straightforward process is required to apply for the loans with a guarantor. Fill out the online application form, which contains the basic financial and personal details of you and the guarantor.
These financial details are regular income proof, 6 months' bank statement, residential address and loan amount. Your consent for a credit check is also necessary. These details go under scrutiny to process the loan further.
After this, you will receive an instant decision of approval. You get approval on a loan amount according to your joint repayment capacity and the guarantor's. Along with this, you receive a loan agreement.
As soon as you give consent to the agreement, the loan amount is disbursed to your account. After this, your instalments start getting auto-debited from the next month as per the conditions mentioned in the agreement.
The loan process for these loans takes a maximum of 24 hours, considering the bigger loan amount. Just like payday loans offer speedy funds but a small amount, guarantor loans take a day but provide a big amount.
Yes, you can avail of guarantor loans for bad credit from a direct lender, even with a low credit rating. Guarantor loans are actually useful for those who have a less or poor credit history.
But remember that your guarantor should have a good credit score. If the credit score of your guarantor is not good, you cannot apply for the loan. After all, a good score from the third party guarantees timely payment.
Apart from this, due to a bad credit situation, you also have to fulfil some conditions. Submit the bank statement for the last six months. It should show that in the last month, you started paying other dues and obligations on time.
If you have strong repayment capacity, you can even get loans for tenants with bad credit on individual creditworthiness. This means that having a guarantor is even easier. A little attention to credit purchase power can make a big difference.
A guarantor loan can be effective in improving your credit score, but it can only be possible if you manage it sensibly. Here are some suggestions:
Make payments on time: If you make timely payments, lenders start trusting you, and it will boost your credit score, too.
Build credit history: A guarantor loan helps you to build a positive credit record if you have no or poor credit history.
Illustrate responsible borrowing: Manage the loan responsibly and demonstrate to lenders in the future that you are a low-risk borrower.
Mix your loan to your credit profile: If you are managing a loan well, then add that to your credit profile that will improve your credit score.
You should be aware of a few things, as it is essential in managing the loan. These include:
To make guarantor loans effective for credit score improvement, choose direct debit payments to avoid missed monthly instalments. After that, check your credit report regularly by approaching a credit reference agency.
24loanswales offers you a number of benefits. If you are looking for guarantor loans from a direct lender, you can consider us for the following reasons.
Guaranteed loans are a great option for those with limited or bad credit history. Apply today and receive funds on instant approval decision.
Representative Example
Loan of £4,000 repayable over 12 months at an interest rate of 45.3% pa (fixed). Monthly repayment of £420.66. Total amount payable £5,047.96
Warning: Late payment can cause you serious money problems. For help, go to: moneyadviceservice.org.uk
Yes, guarantor loans are the right choice, especially if you have a poor credit rating or limited credit history. In both these situations, borrowing a larger amount can be difficult. Therefore, guarantor loans come to the rescue, providing the necessary funds for all your financial requirements.
Yes, guarantor loans are most suitable for those with weaker financial situations. That is why the role of the third party, which is the guarantor, is important. As a pensioner, you have many benefits from these loans. Borrow a big amount at lower rates with the help of a guarantor.
Yes, of course. Guarantor loans in the UK from direct lenders are quite common. They are a dependable source of funds that you need for any personal or business purpose. The application process in direct lending is speedy and 100% online. You get instant approval decision that makes the loan process predictable.
At 24loanwales, we do not charge any penalty on the first missed payment. In fact, we are contacting you to reschedule a new repayment plan based on your repayment capacity. However, various lenders have their own lending policies.
A guarantor loan can definitely improve your credit rating. As long as you repay the loan in a timely manner, your credit rating will go up. In case you make a default, your guarantor compensates and makes payments on your part. Therefore, you have a better chance of improving your credit score.
You can borrow up to £50,000, but that is the maximum amount. You have to qualify for an amount based on your creditworthiness. However, due to support from a guarantor, you can take out a bigger loan.