Personal Loan with a Guarantor

Personal Loan with a Guarantor

If you've been looking for a personal loan (i.e. an unsecured loan with terms based on your personal circumstances) but have been struggling to get what you need then you should consider a personal loan with a guarantor.

 

Perhaps your credit rating has taken a battering during the credit crunch and recession. If you have suffered ccjs, defaults or arrears then you will find it hard to get a personal loan from a high street lender. But a personal loan with guarantor is likely to be available to you.

 

The Benefits of a Guarantor

The presence of a guarantor means that the perceived risk of lending to you is reduced as the guarantor will be someone you know well. By supporting your application (hence a "personal loan with guarantor") the guarantor is saying that if you default on your repayments that they will pay instead. This reassures the lender because obviously neither you nor your guarantor would like to jeopardise your joint friendship.

 

The lender doesn't need to look at your credit history because they won't credit score you - so if you have a poor credit history it doesn't matter. What matters is that you can provide a guarantor. If you can provide an acceptable guarantor then the lenders will lend to you, subject to their responsible lending policies.

 

Your Guarantor Loan

Organising a guarantor loan is straight forward. It can take just a few days to sort out particularly of you can get your guarantor organised early on. The criteria for who can be a guarantor are not too onerous, but the person is very likely to be someone you know well - a family member, close friend, work colleague or, if you are a tenant, even your landlord.

 

How Much Can You Borrow?

Short term loans (for days or months) are from £50 to £500, while loans for longer periods (1-5 years) are available for £500 to £7500.