If you have never borrowed money before and are looking to obtain a loan it can be difficult for a lending institution or bank to help you. This is because you will have no credit history. Having no credit history or rating will make it hard for a lender to assess you and it will be difficult to know whether you will be a risk to them or whether it is safe to lend you money. There are ways around this and one option is a guarantor loan.
Obtaining an unsecured guarantor loan is very simple, all that is required is a person who will act as a guarantor for the loan. Most applicants choose to ask a close friend or family member to help them, however anybody can be a guarantor. The guarantor will then vouch for the applicant who is borrowing the loan. It is vital that the applicant and the guarantor both completely understand the roles that they will be undertaking before signing any contract.
The guarantor will have to have good credit standing to be able to act as a third party for the loan, once everything is in place the loan can be processed very quickly. The applicant applying for the loan will not need to provide credit history as it will be the guarantor who will need to supply this information. Providing all the references come back OK the loan should be processed successfully.
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A guarantor loan can be used for a number of reasons, it's not only for people who have no previous credit history, this type of loan can also be good for people who have bad credit. It is possible for anyone to run into financial trouble which can have an adverse effect on their credit scoring. Providing payments are met on time the borrower can build or restore their credit history by using their guarantors credit standing.
A guarantor loan is an unsecured loan which means the guarantee who is putting their trust into the applicant isn't in danger of losing anything of value to them i.e. their home. This helps to offer safety for the guarantor if anything was to go wrong. However the guarantor must take note that if the repayments of the loan are not met, the lender could decide to go to court which means it could be turned into a secured loan, however this would be a last resort if no other arrangement could be made or agreed on.
Closing comments
When looking to obtain any type of loan it is always important to do some research. With a guarantor loan both the applicant and guarantor must understand everything about the arrangements before signing any contract.
Obtaining an unsecured guarantor loan is very simple, all that is required is a person who will act as a guarantor for the loan. Most applicants choose to ask a close friend or family member to help them, however anybody can be a guarantor. The guarantor will then vouch for the applicant who is borrowing the loan. It is vital that the applicant and the guarantor both completely understand the roles that they will be undertaking before signing any contract.
The guarantor will have to have good credit standing to be able to act as a third party for the loan, once everything is in place the loan can be processed very quickly. The applicant applying for the loan will not need to provide credit history as it will be the guarantor who will need to supply this information. Providing all the references come back OK the loan should be processed successfully.
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A guarantor loan can be used for a number of reasons, it's not only for people who have no previous credit history, this type of loan can also be good for people who have bad credit. It is possible for anyone to run into financial trouble which can have an adverse effect on their credit scoring. Providing payments are met on time the borrower can build or restore their credit history by using their guarantors credit standing.
A guarantor loan is an unsecured loan which means the guarantee who is putting their trust into the applicant isn't in danger of losing anything of value to them i.e. their home. This helps to offer safety for the guarantor if anything was to go wrong. However the guarantor must take note that if the repayments of the loan are not met, the lender could decide to go to court which means it could be turned into a secured loan, however this would be a last resort if no other arrangement could be made or agreed on.
Closing comments
When looking to obtain any type of loan it is always important to do some research. With a guarantor loan both the applicant and guarantor must understand everything about the arrangements before signing any contract.
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