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:

Understanding Guarantor Loans

Currently, there are millions of people who need to borrow money and look at guarantor loans online each and every day. While you might say loans aren’t going to help your situation, it can actually provide some much-needed assistance. Borrowing money is a necessity of life and it can help thousands of people every year. However, what do you know about guarantor loans? Why don’t you read on and find out a few more things about guarantor loans that might make it easier for you to decide if they’re suitable for you.

A Guarantor Loan Means a Guarantor Must Sign on the Loan

A lot of people still don’t grasp the whole concept of guarantor loans and often think they don’t need to get anyone to be a guarantor for one of these loans. You’re mistaken—you are thinking about no guarantor loans. A guarantor loan absolutely requires a signer for the loan so that the borrower can be approved for the loan. In a way, it’s like a security thing for the lender and it will make the lender more willing to hand out the loan too. Guarantor loans have become hugely popular and it does seem as though more people choose these loans than before.

Lenders Want to Reduce Their Risks

In truth, lenders are wary about who they are giving money to and want to make sure they are not putting their money into a bad investment. Remember, if a lender gives a borrower a loan and they fail to repay it, the lender takes the hit and it can be a very costly hit to say the least. You have to instead think about the lender and their risks. When you have a guarantor, you are saying that if you fail to repay, another can take your place and the lender can go after the guarantor for payment. guarantor loans online are the most prominent loans of today and, in truth, lenders want more people to look at these as it helps to reduce their overall risks.

Interest Can Be More Reasonable

Without a guarantor, a lender accepts a huge risk but for most lenders, they don’t have the ability to accept those risks. It’s too costly because a hundred people could default on a $1000 loan and that really means taking a huge loss. It’s not ideal and, in reality, it’s not fair either as you can’t get a loan without paying it back; it’s not a gift at the end of the day. However, with guarantor loans you might find they are a little more reasonable in terms of interest. The interest rates can be a lot more accommodating which is ideal for those who don’t have spare cash to put towards interest. High interest really kills a borrower as they spend more time paying the interest than the actual loan.

Understand What a Guarantor Loan Means for You

Guarantor loans are incredibly popular and it seems as though more people will look to these each and every day. However, you cannot blame people for wanting them as they offer a lot of value for money. Far too many people don’t get the loans they need and end up facing tough times ahead. You want a good loan and a simple loan too which means looking at guarantor loans online—they can work for you today.