How Guarantor Loans Work
Guarantor loans may not be as popular or as controversial as payday loans but they sure are excellent options if you're looking for something cheaper and convenient. The only difficult part is probably with finding a willing guarantor to support your application. Once you find one, however, application and processing is a breeze. To further hasten the process, let's understand how guarantor loans work.
About Guarantor Loans
Guarantor loans, as its name suggests, require a guarantor as the main requirement. It allows you to borrow from £500 up to £25,000 depending on your needs and ability to pay. Either way, the financial product remains one of the easiest loans to avail online today because of its minimal requirements and the fact that lenders do not run credit checks on borrower.
Guarantor loans, therefore, are perfect if you have bad credit or you don't have a house or car to put up as security. With this type of loan product, all you need is a qualified guarantor and you're good to go.
For a guarantor to be eligible, he or she must be 21 years old or over. The guarantor should also be a UK homeowner or a mortgage payer and has good credit rating. As back-up for your application, the guarantor must provide proof of regular income. Anyone can be your guarantor including family, friends or colleagues so long as the person is not linked to you financially like your spouse.
To be an eligible borrower, you must be 18 years old or above and a resident of UK. Basically, you'll just need to fit the lender's eligibility criteria which are mostly pretty basic and straightforward. You'll also need a UK bank account as that is where the money will be wired once approved. In terms of employment, you can be working part-time, full time or self-employed. As long as you can provide proof of income that's in sync with the lender's affordability requirement, you are more than welcome to apply.
How to Apply
To apply for a guarantor loan, you can do it from the comforts of home through your lender’s online portal. Filling out the online application should only take less than a minute. The lender will then assess your application and contact your guarantor. Once the requirements are confirmed, you will know about approval within the same day and the money wired to your bank account in 24 hours or less after approval.