Frequently Asked Questions: Guarantor loans
A lot of people have been misinformed when it comes to the details about guarantor loans. Here are some of the questions frequently asked regarding guarantor loans that may be of help to you.
1. What is a Guarantor Loan?
– A guarantor loan is a kind of unsecured loan which enables people who have bad credit or no existing credit at all, to be able to get a loan. The use of a third party (guarantor), is needed so that the loan agreement can be co- signed. Guarantor loans usually have lower fixed interest rates and monthly repayments.
2. What are the requirements to be processed to get a guarantor loan?
– All loans have the primary requirement of being at least 21 years of age, to be considered for the loan application. Also, the borrower must be a UK homeowner. One requirement that is different about guarantor loans is the need for a guarantor. This guarantor is important because he/ she will be the one to complete the loan application.
3. Who should be a guarantor?
– The guarantor can be anyone who wants to be one. It can be your friend, workmate, or even family member. Usually, most loan companies do not want a guarantor to be someone the borrower has a financial relation with, such as a spouse. It is best to get a guarantor who is not involved in a financial relation with the borrower.
4. What are the requirements that the guarantor must have?
– The guarantor shall have the same requirements with the borrower such as when it comes to age. Also, the guarantor must be a UK resident as well. The only difference is that, the guarantor must have a good credit rating, while you are not required to have one.
5. Can I still apply for a guarantor loan, even if I am unemployed?
– Yes, we consider loan applicants depending on their affordability. All forms of income are taken into consideration just as long as they are consistent. Some examples are income, salary, benefits, pensions, and etc. You just need to prove to us that you are capable of paying your monthly repayments.
6. How do you apply for a loan?
– Although we know that guarantor loans are in demand, we advise you to check if this is really the kind of loan that you need. There are many kids of loan to consider. But if you think that guarantor loans are the best choice for you, then you can click on the buttons on this website to direct you to fill up an application form. And then you can start processing your requirements and wait for the customer service representative to call you. I will just be a matter of days to know if you can already get the money once approved.
7. What if I fail to do the repayments?
– You should contact us first so we can solve the problem with your monthly repayments. But in case you do not try to get in touch with us, then we will have to contact your guarantor, who is the backup plan in case this will happen. If all measures have been exhausted to repay the repayments, then there may be legal actions to take so to solve the problem.