There is a lot of misunderstanding surrounding guarantor loans, so you will need to get your facts straight before deciding whether or not you actually want to get one. This type of loan can be an incredibly good option for a lot of people, so you will need to learn all you can. The more time you take to learn about these this type of loan, the happier you are going to be. Many people have benefited from guarantor loans, and you could be one of them.
No collateral is required
Unlike so many other kinds of loans, no collateral is required. This means that you won’t have to worry about risking your home, car or other valuable property to get it. Instead of collateral, there is a ‘guarantor,’ who agrees to pay back the loan if the primary borrower (you) is not able to pay it back for whatever reason. This will ensure that the loan is going to get paid no matter what. It is important that you take the time to find the right person to act as the guarantor for the loan though.
You don’t have to submit any documents
While it may be a little bit hard to believe, the fact is that you actually don’t need to submit any documents to get a guarantor loan. The person who acts as the guarantor will have to submit documents though, such as bank statements and proof of employment. The lender will only approve your application if the guarantor you picked out has good enough credit and makes enough money.
The funds are reliable
As long as you are borrowing funds from a credible direct lender, you can trust that the funds are 100% legitimate and approved by the FCA. You should try not to think about the business behind these financing solutions too much.
Your information will remain confidential
All of the personal information that you submitted in the loan application will remain confidential and secure at all times. These days all online lenders use sophisticated technology to ensure that all of their customers’ information is kept totally secure. It is important that you find the right lender though so you won’t have to worry about this.
A bank account isn’t necessarily
Despite what you may have heard from others, a bank account isn’t actually necessary to get a guarantor loan. Most of these lenders do offer a doorstep cash service, so you will be able to have someone come right to your house to give you the money from your loan. It is important to consider that most other kinds of loans will require a bank account, but not this one.
It won’t affect your score negatively
Simply getting a guarantor loan is not going to affect your credit score in any negative way, so you will want to keep that in mind. A lot of people are worried about this, but it just isn’t true. The only way that a guarantor loan can negatively affect your credit score is if you do not pay back the money you borrow. Even just paying back your loan late can mean suffering a negative hit on your credit, so you will need to remember that.
You can get a small or large amount of money
Depending on the qualifications of your guarantor, you may be able to get a small or large amount of money. One of the best things about this type of loan is that it’s so flexible. Whether you need $300 or $3,000, chances are you will be able to get it without any issues, especially if you have a solid guarantor.
A guarantor loan is a wonderful option for many people who need to borrow different amounts of money. Even if you have bad credit and have been turned down for other loans in the past, this can be an excellent option to consider. Not everyone who applies for one of these loans will get one, but there is still a good chance that you can. The more time and effort you put into researching guarantor loans, the better off you will be when it comes to getting the money you need.