How to get Guarantor Loans
When you are in need of a loan for whatever reason, there are different options that you can choose from. The type that you choose is often dependent on your past credit history and the amount of the loan.
Guarantor loans are a popular option for people that have yet to fully establish their credit.
Getting approved for a loan with a very bad credit history is almost impossible, but a guarantor loan allows you to build your credit at the same time.
What is a Guarantor Loan?
Guarantor loans are often referred to as buddy loans. This is due to the fact that another person must also sign for the loan and be obligated to pay.
This means that there is more than one person responsible for repayment of the loan. It is a type of unsecured loan, which means that no collateral is needed. However, it is a requirement that another person be willing to guarantee the loan.
The normal amounts for guarantor loans can range between 1,000 and 7,500. The risk of the borrower is why guarantor loans need to have a second person.
George Banco Loans can provide loans up to 7500 and can be repaid back up to 5 years. They have a rate-dropper product where the interest rate reduces each year if you make your payments on time. Another big plus with them is that when you apply, they try to give you a normal unsecured personal loan first of all, but if that fails, then they offer you a guarantor loan instead.
Who is a Guarantor Loan For?
Many people can qualify for guarantor loans. The people that are the best applicants for this type of loan include those that want to work at building their credit history or those that want to improve it.
If you have bad credit, this is a loan that you can be approved for, since there is someone else on the loan to guarantee it.
If you need to get access to cash fast and need a loan with a quick approval process, this is also an ideal option.
Guarantor loans are designed to be the simple solution and are relatively easy to be approved for.
Who Can be a Guarantor?
When you are trying to get a guarantor loan, you need to have someone that will be approved as a guarantor.
This is someone that is over 18 with established credit. Someone on the application for the guarantor loans must have good credit history and credit score that minimises risk.
Having a bank account and a minimum income or savings are also requirements that a guarantor must meet.
In the event that the borrower of the loan does not pay, the guarantor is responsible for taking over the payments.
If payments for the loan are repeatedly made late, this could also negatively impact the guarantor of the loan.