subject: Guarantor Loans Made Easy [print this page] Unsecured Loans have seen many challenges in recent times, now their back, with a guarantor!
A Guarantor loan is for someone who has bad credit and has difficulty obtaining a loan under normal circumstances. Should you fail to make your payments on time, your guarantor may be expected to make the payment for you.
Bad credit can be a result of making late payments, skipping payments or even exceeding card limits on existing credit cards and loans. Clocking up several loans, credit or store cards can be easily done, especially in the last few years when banks have lent money so easily. The "credit crunch" a phrase which most people are aware of has left banks being more cautious as to who they lend money to. This is where a Guarantor loan can be the most convenient and easy option.
The result of bad credit can be a low credit score with the credit scoring companies. These companies, such as Experian & Equifax are used by financial services to rate if a customer is good at keeping up repayments on their mortgage, loans, credit cards, etc to judge whether or not they should lend them the money.
If you need a loan and have bad credit, someone you trust such as a friend or relative can act as your guarantor. It does not matter if you do not own your own property, as long as your guarantor is a homeowner. They must have a reasonably good credit score and vouch that you will keep up if your repayments. Be warned that if you do not keep up those all important repayments that the Guarantor may be asked to make them for you.
Once you have asked that all important friend or relative to be your guarantor, the process is relatively simple. Make your application, provide you & your Guarantor's paperwork, this usually entails bank statements or wage slips. A credit search will be made against both yourself and your Guarantor. No need to worry about this affecting your Guarantors credit score, it usually leaves merely a "footprint". Then leave the rest up to the finance company. It is simple and your money can be paid out to you quickly!
by: Jon Miller
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