Do you have bad credit score and credit reports? Are you 18+ years and are employed? If your answer is yes you should be relieved because you can still get loans as long as you can get someone to stand by you and you can guarantee monthly payment of the loans. Guarantor loans will help you with this. However, before answering our topic question let us understand some terms that are common when you mention guarantor loans.
Bad credit history
This is where the individual’s credit history is bad, they have low credit score, bad credit report which means to the financial lending institutions that they are a high risk to offer credit. There are many factors that contribute to this kind of profile and it may take more time to reverse. Unfortunately, it is nearly impossible to obtain a loan from the traditional lending institution with a bad credit history.
Bad credit guarantor loans
From the name, guarantor loans are loans where your guarantor who can be anybody co-signs with you giving you lee way to borrow money even though you have bad credit history. They often are chosen because they can help in paying the loan in case the beneficiary is not able to pay. This is also where your credit score could improve if you pay your loans on time thereby opening other avenues for you to borrow.
So where can one find guarantor loans for bad credit
- The information on guarantor loan is available online, here they tell you all the things you need to do and where to find them. Be sure to sift through though so that you can get honest information and reviews that can be of so much help to you.
- There are many brokers in this field you can visit, they will avail all the information you may need including helping you choose the most appropriate guarantor loans for your situation. Note though that the fee charged may be higher.
- Approach the lending institution seek advice on what to do in order to earn this kind of loans, be patient though so that you may learn.
Points to consider
- The fact that you are looking for a guarantor loan means you need to get yourself a guarantor with good credit history and ability to pay the loan on your behalf. If you don’t have a guarantor there is no loan for you.
- Monitor your finances so that you don’t repeat the mistake again. Try as much as you can to pay your loans on time so as to improve your credit scores.
- Remember that the loan can be secured or unsecured where the lender secures the loan it means your property is used as the security and in case you default you could end up in a worse situation while if it is unsecured you the lender can’t take your property in case of default.
Bottom line guarantor loan may not be as easy to get as most think but depending on where you are financially you may need to know more or less things before taking the guarantor loans. Always remember to read the terms and condition before signing the document because you don’t want to be on the negative side of guarantor loans as the effects are so dire there.