How a guarantor loan application works
A guarantor loan application works slightly different to your typical personal or payday loan. This is not just a case of entering your details and getting a decision. The key difference is that you are entering the contact details of your guarantor too and based on the guarantor's credit rating and employment will have a significant impact on whether your loan of up to £15,000 is approved or not. Some
Read MoreThe Checks Carried Out By Guarantor Lenders
The lenders we feature will always carry out a series of checks with the borrower and the guarantor before granting a loan of up to £7,500. The customer will typically fill in an online application which takes around 5 minutes and they will be asked to fill in details about themselves including their age, residence, employment and expenditure. It is important for the lender to carry out various checks in
Read MoreThe responsibility of the guarantor
What does guarantor mean on a loan? The guarantor is the person who agrees to pay for someone else's loan if that person cannot afford to repay. The guarantor is always asked to co-sign the loan agreement before it goes through and the lenders we feature will usually do a phone call with both parties to go over the terms and conditions of the agreement. Circumstances can change and the borrower
Read MoreWho could be my guarantor?
A crucial part to a guarantor loan is selecting a good guarantor to increase your chances of the loan being improved. From the lenders point of view, have a good quality guarantor with a good credit rating adds huge credibility to your application. Even if you have bad credit and have been turned down by banks and other lenders, you can still borrow up to £15,000 based on having a good
Read MoreWhat happens if you cannot repay your guarantor loan?
If you cannot repay your loan, the idea is that the repayment will be collected from the guarantor's account. But before the guarantor is out of pocket, the lender will usually get in touch with the borrower to discuss repayment and give you the chance to repay first. We appreciate that one's circumstances can change and due to an emergency or being paid late from work, you may not be
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