A guarantor loan is a method of lending that involves a second person vouching for the borrower, often in instances of bad credit or other failed checks. In the short term, this type of loan can be very good for accessing cash that you would usually be unable to, with the guarantor only being required for the duration of the repayments. Here are some of the advantages of utilising a guarantor loan, so you can see whether this method of borrowing is right for you.
You don’t need good credit
If you have a low credit rating, it can be difficult to find a company that is willing to lend you money, due to the lack of proof you have of being able to make repayments. However, with a guarantor loan, you can borrow money as long as you know someone with good credit who is willing to vouch that you can make the payments. These types of loans make short term lending accessible to more people than ever before, meaning that emergency funding is within anyone’s reach. If you know you can repay the money, then it’s worth finding someone to vouch for you. Especially if you need funding fast.
The guarantor is fully aware of everything
Fraud prevention is a big part of guarantor loans, with most companies initially transferring the borrowed amount into the guarantor’s account, so they know exactly how much the person is borrowing. Checks are also carried out to ensure the client can make the repayments, and that the guarantor will only be used as a last resort. This is definite peace of mind to anyone performing the role of guarantor, as they know their own personal funds are safe. The guarantor is also only required for the duration of repayments, which could be as little as 18 months with short term lending. Hardly any time at all.
It’s still quick and easy
Even with the addition of a guarantor, these loans still get to you fast, with the application process being simple to complete. Most companies aim to get the money to you within a few working days of receiving a successful application, which is great if you need cash urgently. You’ll definitely be borrowing in no time with a guarantor loan.
So, as you can see, guarantor loans are certainly a positive addition to the world of short term lending, offering more people than ever the option to borrow money, whilst also minimising the risks for guarantors. They’re safe, simple and, most of all, quick, bringing you money in no time.
Would you take out a guarantor loan?