Enjoying quick and reliable funding even if you have bad credit with Guarantor Loans in the UK.
If you need quick and reliable funding to deal with unforeseen expenses like car and home repairs, there are numerous loan that you can consider in the UK today. There are secured loans that will require you to offer some form of collateral to access large amounts of borrowing for longer periods of time and there are also short-term loans like payday loans that are ideal for emergency situations. There are also guarantor loans that can help you enjoy flexible financing for higher amounts of cash. In this short guide, we will discuss what guarantor loans are, how they work, their advantages, and some of the alternatives that you can look into to avail the funding that you are looking for.How Guarantor loans can help you enjoy reliable funding
Guarantor loans are designed to help you avail for reliable funding if you can’t accomplish it alone either because you have bad credit or you still have to make your own credit history because you have not accessed any type of credit in the past.In a guarantor loan, there is a second person who enters the loan deal and agrees that in the event that you miss out or default from your payments, he/she will be the one to personally shoulder it. Because of the trust and relationship that you share with the guarantor and his/her agreement to become a secondary option on your loan’s repayments, it makes it easier for lenders to grant you the funding that you need.Guarantor loans in the UK and why they are Ideal options for you
While there are certainly numerous loan options available in the UK today, guarantor loans could be the ideal solution to your funding needs for several reasons and they include:
- Highly accessible – Guarantor loans are designed to provide people in the UK with easily accessible funds especially those who have problems in taking out credit due to poor or inadequate credit histories. If you manage to find someone who is willing to back you up in your loan deal and meets the lender’s “guarantor” criteria, taking out a loan would be easy.
- Large amounts of borrowing – The presence of a guarantor negates the risk involved in your application since there will be another person who guarantees that the payments will be made. This gives lenders the confidence they need to grant you larger amounts of loans that would otherwise be unavailable to you. With a guarantor loan, you can normally take out anywhere from £1,000 to as much as £15,000.
- Quick approval – Taking out a guarantor loan won’t take much of your time. If your application satisfies the lender’s criteria for borrowers, you can complete your loan transaction and have your money ready for use in 1 or 2 days. This makes guarantor loans a viable solution if you are faced with emergency situations that require quick funding.
- Flexible repayments – How long you will need to pay back your loan will vary on the amount that you take out and your income level as well. Guarantor loans however, are flexible and can last up to 7 years if necessary.
- Minimal Default Rates – The loans are far less problematic to many people in the UK compared to other credit products. This is because payment terms are flexible and tailored to your current situation. There is also a guarantor who basically ensures that the payments will be met making defaults extremely rare.
Guarantor loans are more expensive than most traditional loans but are cheaper than many unsecured types of loans. You can expect APRs to hover around 40% to 50% although you can find cheaper rates online with the right lender and guarantor.
Guarantor Loans for Bad Credit
Taking out a traditional loan from a bank can be a tall order for anyone who has bad credit. Putting up your finest suite and biggest smile still won’t work on a bank loan manager the moment he evaluates your application and sees negative marks on your credit history. Banks and other traditional financing institutions just won’t risk lending you the money that you need no matter how dire your situation is if your credit history is unsatisfactory.But this doesn’t mean that you are no longer eligible for a loan. There are still options that you can consider to cater your need for funding and one of them is guarantor loans for bad credit. All you need to do is find a suitable guarantor who is:
- A UK resident typically aged 21 to 75 at the start of the loan
- Someone who has a strong credit rating
- A UK bank account with debit card holder
- A high income earner (earnings must be at least enough to cover the loan’s repayments)
- Not financially linked from your e.g. a spouse
With guarantor loans for bad credit, your credit ratings will not get in the way of getting approved. This is because lenders will look at your own financial standing and whether or not it’s enough to afford the loan and its repayments to determine your eligibility. And in terms of credit worthiness, your guarantor who has a strong credit rating is what matters the most.If your application becomes approved, you will normally see your money deposited into your account in the same day or the next business day. The application process is easy and if you opt with online lenders, then you will enjoy the convenience of taking out a guarantor loan for bad credit anytime and anywhere through your smart phone or tablet.
No Guarantor Loans
If it’s simply difficult for you to source out a suitable guarantor who will co-sign your loan deal or if you don’t want to involve somebody in your credit transaction, no guarantor loans could be the ideal option for you. Some of the popular loans that won’t require a guarantor that you can look into in the UK today include:1.) Payday Loans
The no guarantor loan options are short-term unsecured types of loans that can be accessed with ease anytime you need them. Payday loans allow you to borrow anywhere from £100 to as much as £1,000 and pay it back typically on your next payday. The process in taking out a payday loan is seamless and you can get approved even if you have bad credit as long as your income can afford the loan. After you have successfully submitted your loan and the lender has verified the information in it, you can get approved in a matter of minutes and have your money ready for use in the same day.2.) Logbook Loans
If you have a vehicle like a car that you can comfortably put up as collateral in your loan deal, log book loans are no guarantor loans that you can consider. You can access the financial products from high street lenders and even online. The loans allow you to enjoy large amounts of funding from £500 to as much £50,000 or 50% and sometimes even 70% of your vehicles trade in value. The payment terms are also longer ranging from 1 year to 3 years giving you enough time to pay off your debt.3.) Personal Loans
Personal loans are unsecured forms of no guarantor loans which means that you don’t need to put up any kind of asset as collateral to obtain the funding that you are looking for. This also means that you will need to have a good credit rating to become approved as there is no security in the part of the lender. If you are eligible, you can take out personal loans worth £5000 and even £25000 from banks and online lenders as well.4.) Door Step Loans
Doorstep loans are the most convenient forms of no guarantor loans that you can take out in the UK. As its name suggests, you can obtain a loan right at your very doorsteps through a friendly local agent representing the lender. Doorstep loans are short-term loans with borrowing amounts ranging from £500 to £1,000 and repayment terms anywhere from 2 weeks to a month. The beauty about these financial products is that you can discuss any concern that you may have for your loan with your local agent. You also don’t need to exit the confines of your home to make the repayments as the same agent