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 will be the one to visit your home to collect it.
Because there is no other person to back you up in your loan deal with a payday loan, personal loan, or any other type of guarantor loan, the entire responsibility in paying off your debt will rest on you alone. And if you take out an secured type of no guarantor loan like a log book loan, you could potentially lose your vehicle if you default from your payments. These are some important things that you need to consider first before you apply for a loan without a guarantor.
Guarantor loans from a direct lender
Guarantor loans from a direct lender will allow you to obtain quick and reliable funding online with ease without experiencing the hassle involved in dealing with numerous companies. This because the direct lender will be the one to conduct the entire loan process, from approving your application to transferring the loan amount to your bank account.
Benefits of guarantor loans from direct Lenders
Taking out a guarantor loan from a direct lender will allow you to enjoy exclusive benefits such as:
- There is need to pay extra for the services of a broker to secure the funding that you need.
- You can avoid blemishing your credit report even with numerous initial applications from different direct lenders.
- You have the option to compare different quotes from as many lenders you can find in the internet.
All direct lenders that provide guarantor loans in the UK are regulated by the FCA or Financial Conduct Authority. This means that they operate under certain rules and guidelines that are created to protect the interest of borrowers in the UK. Thus, if you are thinking about taking a guarantor loan from a direct lender, you can rest assured that it is 100% legit, free from scams and gimmicks.
What to Expect from Guarantor Loans with a Direct Lender
When you take out a guarantor loan from a direct lender, you can also expect several great features and they include:
- Seamless application – The application process involved in taking out guarantor loans from a direct lender is relatively seamless. And because you can apply online, you can access quick and reliable funding without having the need to fax documents, do any single paperwork, fall in queues or set up an appointment with your lender.
- Used for any purpose – Once the lender approves your application and deposits the money in your account, you can immediately use it for any legal purpose you want. You can use the loan to consolidate debts, pay off unforeseen bills or even take a vacation.
- FCA regulated – Direct lenders are strictly regulated by the FCA and they put a cap on how much they can lend borrowers and on the interest rates for their services. This means that taking out a guarantor loan from a direct lender is 100% safe and tailored to your needs and present circumstances.
- Bad credit can get approved – Even if you have bad credit, you can still get approved of a guarantor loan from a direct lender as long as you and your guarantor are qualified.
How to find the ideal direct guarantor loan lender
If you are having a hard time deciding which direct guarantor loan lender is ideal for you, here are some tips that you can follow:
- Ask around – Try and ask any friend, family member, or someone you know who has had the experience in taking out guarantor loans in the past. They may be able to recommend you with a reputable direct lender that will offer the best deal available.
- Ask questions – Learn what you can expect from a potential direct lender and never hesitate to ask questions if something doesn’t feel right. Asking relevant questions will also help you gauge on how responsive a lender is. If it’s doing its best to cater any and all of them, then this would be a good sign that the direct lender is committed to providing the best possible service to their borrowers.
It’s important to note however, that even if you can get approved despite having a bad credit rating, you will still need to hold enough monthly earnings to afford the loan and its repayments to become accepted. Also, never forget to work with a direct lender who provides guarantor loans who are licensed by the FCA if you want to enjoy a deal that is favourable to your needs and present circumstances.
Guarantor loans in the UK and Guarantor Loans with Instant Funding
So what are guarantor loans in the UK and guarantor loans with instant funding anyway? Basically, they work pretty much like regular guarantor loans but only quicker. They are also called same day guarantor loans because of their ability to give you the funding that you need in the same day you made your application. Normally, the financial products are offered by private online lenders who have an advanced and efficient system in approving loan applications within 24 hours. While there are plenty of unsecured loans in the UK, only a few have the potential to give you the money that you need when you need it the most and guarantor loans with instant funding are one of them.
No hidden fees and extra charges
When you decide to apply for guarantor loans in the UK and guarantor loans with instant funding, there are no secret fees and charges involved. As a matter of fact, it’s one of the key benefits that you will enjoy from the kind of financial product aside from providing you with a quick and seamless application process that can be completed online. Here are the things that you can expect when you consider guarantor loans with instant funding:
- Completely transparent transactions – All the details pertaining to your loan, including its exact amount, interest rate, and schedule of payments will be displayed to you upfront. There are no hidden information that might catch you off guard once you sign your loan deal. Administration or application fees are nonexistent. What you see is what you get.
- Zero Hidden Fees – Before you sign the agreement, all the costs associated in your loan are laid down in front of you which means there will be no surprises once you make your payments.
After you have completed your application online, you will instantly see what amounts, rates and terms you may qualify for. Everything will also be displayed to you on how much you’ll owe and when, before you sign your instant guarantor loan contract.