Guarantor Loans Direct Lenders

The Perfect Solution For Anyone Who Has Slight Bad Credit History

Most lenders are reluctant to trust borrowers who have even slight bad credit history or no credit history at all. If you fall into either one of these two categories you will find it very difficult to get your loan application approved through any of the traditional avenues such as banks and other financial institutions. Even if you do manage to get a loan, you will end up paying such high interest rates, it could be a budgetary disaster. This does not mean that you have reached a dead end however.
A new type of loan, called a guarantor loan, was recently been introduced in the UK.

Understanding Guarantor Loans

A guarantor loan is essentially an unsecured loan that is given when a second person acts as a guarantor.
These loans are quite different from most other types of traditional loans. When you apply for a guarantor loan, all you need to get it approved is to have someone stand guarantee for you. Checking your credit history is not prerequisite for getting this loan sanction, which makes it an ideal solution for anyone with bad credit history or no credit history.
While guarantor loans are similar to payday loans in that there is no credit check, guarantor loans have slightly lower interest rates.
With a guarantor loan, you can borrow an amount in the rage of £1,000 to £7,500 over a term of one to five years.

Eligibility for Guarantor Loans

To apply for a guarantor loan, you must meet the following requirements
- Be over 18 years of age
- Have a UK bank account from where the repayments can be collected
- Have someone in good standing who can stand as guarantor for you
- Be able to show that you can afford the repayments
- Be able to show that you are capable of repaying the loan within the time stated

Who qualifies as a Guarantor?

You can get almost anyone to act as your guarantor. This could be a family member, friend, or even an office colleague. The only stipulation is that this individual should not be linked to you financially. For example, a spouse may not qualify to act as your guarantor.
In addition, a guarantor must be a UK homeowner who is over 21 years of age and has a good credit history. Before the loan is approved, the direct lender will conduct a credit checks on your guarantor and will also want to see their proof of ID as well as their bank details and bank statements. 


Is a Guarantor Loan the best solution for you? 

If you have a slightly bad credit history or you do not have any credit history at all and your loan application has been rejected by other lenders, then a guarantor loan could be the best solution for you provided that you have a guarantor who meets the criteria.












Check out our page on why you should go to direct lenders and not the broker.