Need a guarantor loan? Let us know your loan requirements, some basic details, and we'll do the rest.
Once your results are in, you can compare from a range of providers, to get the best deal.
Not only will you get to choose from a great selection of lenders, you'll get £35 cashback if you take out a loan.
A guarantor loan is a loan that is lent to the borrower on the condition that, if you cannot repay it, then someone else (a friend, family member, etc) is responsible for paying back.
This other person is your guarantor, and is vouching for you on your behalf, to guarantee that the loan will be repaid, no matter what happens.
Guarantor loans are popular for people who have a bad credit history or no history, and who would not normally be offered a loan. These loans offer people an opportunity to borrow money from the bank, regardless of their credit history, as their guarantor is responsible for any missed repayments.
Banks offer guarantor loans as they know that regardless of your situation as a loan-taker, they’ll always be able to get their money back through your chosen guarantor, making it a low-risk loan.
It’s actually relatively easy to apply for a guarantor loan, especially if you already have someone who has agreed to be your chosen guarantor. The only other rules that apply are: you must be over 18 years old, have a UK bank account and be in full-time employment when applying for the loan.
Make sure that when you choose your guarantor, they’re a trustworthy person who you’ve known for a long period of time and has a stable income and good credit history. If your guarantor later decides to change their mind about being responsible for your loan, this can cause complicated issues between you and your lender.
It’s safe to say that guarantor loans aren’t for everyone, especially since they’re mostly popular with people that have low credit scores. But if you do have a low credit score and you can’t find a guarantor, or you don’t want to use one, then there are alternatives that you could make use of.
For example, you apply for peer to peer loans, short-term loans and secured personal loans, though not every bank will offer you these so be sure to do your research before choosing the right one for you.
If none of these options feel right for you, that’s okay, there are more traditional methods that can get you a loan. Some banks can offer you a loan with “borrowing limits” which means they will allow you to borrow money within a set amount of time, much like an overdraft on a current bank account.
Whichever type of loan you choose, always make sure that the repayment plan is one that you can afford. Use Quidco to compare these loans, and find out which one offers you the best and most affordable deal for you.
Finding the right guarantor loan can be difficult, especially as there are many different options online that all claim to offer you similar products.
That’s why it’s so important when applying for a loan that you take your time to compare different options, to find one which deal gives you exactly what you need, whether that’s the set repayment plan they offer or the interest rates on your loan. It's good to be sure of all of these things before you sign the dotted line.
We believe in giving you all the information you need upfront, so you always make the most informed decisions (and ultimately, save yourself a lot of hassle in the long run should you choose the wrong one!).
That’s why our guarantor loan comparison gives you an easy-to-digest guide into what each loan offers and their costs. We’re wary that some lenders have hidden costs, so we’re determined to always help you identify these before it’s too late.
If you die before your loan is paid back, it is generally considered that your estate or any assets that you own will go towards paying back your debt.
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