Top 5 Myths & Facts About Guarantor Loans

Guarantor loans are a new form of loan, offering people with bad credit the possibility of borrowing money for most reasons. Many places have nothing but bad things to say about these guarantor loans, since not only do they usually have a twisted view of the current financial market, but they usually do not know all the features about how these loans work. We thought that a small article discrediting some of the key myths scattered over the Internet would help many potential borrowers to think on their own. So without further ado, we present the 5 best myths and facts about the guarantor loans discredited once and for all:

1. The Guarantor Must Hand Over There Bank Details

This is not true, while some lenders need the guarantor’s bank details; there is a couple as well who does not need this. In general, these are smaller companies that strive to establish a solid relationship with the borrower and try not to have to trust in the guarantor unless the contact with the borrower disappears.

2. The Interest Rates Offered Are Ridiculously High

Although there is some truth in this claim, it is significant to consider the alternatives. Unsecured lenders are few and far between when things turned around towards the end of 2017, most of the major lenders retreated, from Welcome Finance to much more recently the Lloyds TSB: Black Horse Finance lending arm. When the lender that has survived is daily loans, the quoted interest rate that is in the money supermarket is 35%. This is for people with a great toy fair credit history. The other lender is provident; they provide home loans for people with bad credit. This means that somebody comes to your door once a week/month to collect your payments. The indicated interest rate for provident is 272%. Click here.

3. The Loan Is Guaranteed Against the Property of the Guarantor

The guarantors are necessary to be owners; however, different secured loans absolutely nothing is guaranteed on the property. The reason why guarantors should be owners is that they are much more possible to make loan repayments to avoid affecting their mortgage rates. They usually have a proven financial history as well.

4. You Can Only Get a Small Loan

The amounts of the guarantor’s loans increase constantly. Now the maximum you can borrow is $ 6500. When a lender enhances the amount offered, most will follow suit. This is ideal for consumers and means that expectantly we will see amounts that exceed $ 6500 in the next year or so.

5. The Guarantor Loans Are in the Guarantor’s Credit File and Not in the Borrowers

The guarantor loans are in the borrower’s name, the loan will not appear in the guarantor’s credit file unless the loan fails. This means that it is a great way to fix a bad credit file and, confidently, in the future you can opt for a more convenient option through a bank. The guarantor does not have to worry about the loan, which prevents them from obtaining financing in their name is needed.

So there you have it, I hope this has been perceptive and helped a little when we decided to follow this route or not. As always, it is important to think carefully about obtaining a guarantor loan, especially if it involves a friend or close relative. For more details, visit:

Applying for a Guarantor Loan Online

Interested in guarantor loans? You aren’t the only one who is thinking about a guarantor loan as more and more like the idea of choosing a loan that comes with a guarantor. In truth, having a guarantor can help reduce the overall interest amounts faced by borrowers and it can be a little easier to obtain the loan in the first place. Far too many people don’t get the loans they need and end up with a very costly loan. However, applying for a good guarantor loan online can be far easier than you think.

Look at the Terms and Conditions of the Loan

Before you apply for a loan, you have to take a moment out to look at the type of terms and conditions there are with the loan. Now, a lot of people dismiss this idea as they think they understand what the loan means but that’s not the case. When you have a guarantor loan, or indeed any loan, you’re going to have terms and conditions and if you don’t know what they are, you could get a bad loan. You have to look at guarantor loans online and their Ts & Cs. This will make a real difference and it helps protect you too.

Ensure You Are Correct with What You Put on the Application

You are putting down a lot of information about yourself on the application and you don’t want to slow things up by putting down wrong info. When you are applying for a loan and are filling out the appropriate details, you have to ensure they are correct. You need to take the time to read over what you have written, even online, and ensure it is all correct. A lot of people miss out information on application forms as they don’t think it’s relevant to them but it will be. You cannot afford to miss out information as it might mean your application is rejected. Guarantor loans are usually easy to apply for but again, the information you provide will need to be in order.

Make Sure the Guarantor’s Information Is Correct

When you’re looking for guarantor loans online you are also going to have to provide the lender with details of the guarantor. You not only have to have your guarantor lined up but ensure the information you are giving over about them is also correct. A lot of borrowers make up things about the guarantor so that they look in a far better light but it’s not the right idea. Remember, lenders conduct checks, even online, and if they find you have lied about things, they will reject the application. That’s why you have to ensure all information is correct about the guarantor.

Apply with Care

When you are submitting a loan application, you have to be very cautious. You not only want to ensure you are giving over the right information but also that you aren’t misleading the lender in any way. You can get into a lot of trouble if you lie on certain application forms and it might mean you aren’t able to repay the loan. If you aren’t, you will ruin your credit and you don’t want that. When you want to look at guarantor loans, you have to ensure you apply and submit all necessary details.

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