Poor Credit? Consider a Guarantor Loan

If you are one of the millions of people in the UK who has a poor credit history and is need of a loan, you may have found that you are between something of a rock and a hard place in terms of the options that are available to you. Once upon a time the whole business of having a loan or credit card application accepted was a much simpler business, and the chances were that if you suddenly found yourself in a bit of a pickle because of an unexpected expense, you could simply pop into your local branch for help. Nowadays credit is a much harder thing to come by and with many finding the doors of mainstream lenders closed to them, millions have been forced into borrowing from payday lenders. Fortunately however there is in fact a third, middle option between the mainstream and payday lenders which consumers can turn to as an alternative.

Guarantor lending is the key to getting the money that you need

Guarantor loans have become an increasingly popular method of borrowing money since the financial crisis began in 2008. Whether you desperately need a loan so that you consolidate your high interest payday debts, replace your car, do that building work on your home, or simply go on a much needed holiday with the family, guarantor loans have given millions of people the opportunity to get the money they need. And what’s more, there are no fees, no brokers, and no dubious business practices in place to fleece you out of money; getting a guarantor loan is simple and straight forward, and all you need to be eligible for a guarantor loan is to find a friend or family member who is willing to act as a guarantor and back up your loan agreement.

All about guarantor lending

Although guarantor lending might seem like a relatively new concept, it is in fact a bit of a throwback to a time when borrowing was conducted on a more traditional, trust based system before credit scoring was introduced. Upon finding a guarantor to co-sign your loan and back your application, you can borrow up to £7,500 and if your application is approved then the money can be in your account quickly and with no fuss. A guarantor loan will offer you the opportunity to borrow between £1,000 and £7,500 over a one to five year period, which means that the loan can be paid back flexibly over a time period which suits you. And what’s more, a guarantor loan is a much more affordable way of borrowing in comparison to the other borrowing options which are out there. If you are looking for a loan of £3,000 to be paid back over three years, you can pay it back in monthly instalments of £143.98, which is the equivalent to 47.9% APR. This is much, much less than a payday lender would charge you for the privilege of a loan, and it is not unheard of for borrowers to pay £25 interest for every £100 borrowed from a payday lender. So if you have poor credit and need some money in your pocket in a jiffy, why not get a guarantor loan?