Guarantor loans are an excellent alternative solution if you are struggling to get a loan, due to reasons such as a poor or limited credit history. The guarantor acts as a form of security for your lender, so if you default on your repayments, they’ll still get their money back. At LoanPig, we can connect you with trustworthy lenders of loans up to £1500 if you can afford the repayments. Rather than focusing on your financial past, as direct lenders and brokers, we can focus on the present and your affordability today. Many lenders are available that can provide the specialist help you need, even with a poor credit history.
With flexible terms up to 12 months available, use our handy slider to choose the amount and terms you want for a guarantor loan and click apply now to start your application today.
What Is A Guarantor Loan?
Guarantor loans are a type of loan that is catered specifically to lenders with a poor credit score. Often a guarantor loan is taken out by individuals who would be unable to access additional funds in a conventional manner due to their poor credit, which therefore requires them to provide an extra level of security. This can be done in the form of a guarantor, and guarantor loans in the UK involve the co-signing of the loan agreement, meaning it becomes the responsibility of this guarantor to repay the debt if the person taking out the loan is unable to. Debtors unable to payback their guarantor loan themselves can result on the debt falling upon the guarantor for a number of reasons, which can include illness or lack of funds.
Guarantor loans in the UK are also often used as an alternative when the person taking out the loan may struggle to be approved for a regular loan, due to a bad credit score, limited credit history, or other reasons surrounding the uncertainty of their financial situation. A guarantor loan can be used for a variety of payments, whether it is for an emergency situation, a payday loan or any other kind of short term debt situation. By applying for a guarantor loan online, you may be able to resolve your current financial situation with a trusted provider.
What Is A Guarantor?
Before you decide to look into getting guarantor loans in the UK, it is important to first understand what a guarantor is. Typically, a guarantor is a family member or close friend who will co-sign your guarantor loan agreement when you apply. Once your guarantor has co-signed, they will inherit the responsibility of paying back the specified repayment fee if you yourself are financial unviable to do so. As the financial debt will fall onto them, your guarantor must be financially stable, have a good credit score and have the evidential means of paying back your guarantor loan for you by the specified repayment date. When signing on as a guarantor, any lender will conduct a credit check on both you as the guarantor, as well as the individual taking out the loan. It is important that a guarantor loan is only taken out when the guarantor has the financial stability to pay back the loan, should the occasion come when the borrower is unable to. This added level of security can make a guarantor loan an extremely viable option, regardless of your credit score.
Who Can Become A Guarantor?
Technically, anyone is capable of being a guarantor. Even so, there are several criteria that a lender may require you to meet to be eligible for consideration. The ideal candidate for a guarantor for your guarantor loan is a friend or family member that is financially stable and has a separate bank account from yourself. May leading guarantor loan lenders also have their own specific individual criteria for those considering being a guarantor which often requires the applicant to be over 21 years old with a good credit history. By checking that you are able to meet these criteria before you apply, you can make sure that your chosen guarantor is one that will see your application is approved the first time you apply.
Benefits Of Taking A Guarantor Loan With LoanPig
At LoanPig, we want to help you resolve your financial problem as soon as possible. We can help you find a guarantor loan in minutes, tailored to both how much you need to borrow and how long you require the repayment period to be. We are here to help, which is why we make sure that when you arrange a guarantor loan, you are able to comfortably afford the repayments, rather than adding to your troubles in your time of need.
Some of the main benefits of taking a guarantor loan with LoanPig include:
– LoanPig charges a maximum interest of 0.8% per day.
– LoanPig can only charge a one-time late penalty fee of £15.
– LoanPig ensures that customer will never pay more than double the amount they borrowed.
If we can approve your guarantor loan application, you can expect a quick pay out, allowing us to give you the financial support you require in a matter of minutes.
Guarantor Loan Stages
Step 1 – Application
To begin the process to acquiring any guarantor loans in the UK, you must always begin with an application. Fill out our online application, let us know how much you need, and how long for. You will also require to provide us with some further details about you and your current situation.
Step 2 – Decision Process
After submitting your information, you’ll receive a decision on the very same day. We’ll provide you with our decision, along with multiple options for your guarantor loan, so you can alleviate any difficulties you may be having for the time being.
Step 3 – Payment
When you have accepted the loan and agreed to all of the attached conditions, the money will be sent directly to your bank account. The length of time this takes may vary, but many customers receive their guarantor loans within 10 minutes of signing the agreement.
Am I Eligible For A Guarantor Loan?
Applying for a guarantor loan in the UK with LoanPig is an entirely digital process, with the application taking place online. Using our loan calculator will allow you to choose the amount you would like to borrow, and the length of time you wish to spread repayments over. You will then be shown an estimate of what your monthly repayments for your guarantor loan will be. If you’re happy with the monthly repayment estimate and the loan terms, you can proceed to apply for a guarantor loan. To be eligible for guarantor loans in the UK, you’ll need to be:
– A current UK resident.
– At least 18-years-old.
– Have an active bank account and a valid debit card.
– In permanent employment or receiving some form of disability/living allowance or pension.
If you have any further concerns regarding prior financial difficulties, you have a bad credit rating or have never borrowed before, you don’t need to worry. As a broker, LoanPig uses a panel of lenders, some of whom are prepared to lend to clients who have a low credit score. With guarantor loans in the UK, all loan applications are subject to a full credit check, but your credit score is not the only criteria a guarantor loan application is considered.
The most important factor is that you are able to demonstrate your affordability to make repayments and provide proof that any financial issues are in the past. This way, we are able to find you the best guarantor loan in the UK.
Guarantor Loans FAQs
Can You Apply For Multiple Guarantor Loans?
We do not recommend applying for multiple guarantor loans simultaneously. If you find yourself in a financial emergency, this will not be the best way to alleviate your issues. Taking out multiple guarantor loans can run the risk of defaulting on payments and negatively impacting your credit score. If you do need a larger loan amount to cover the cost of your financial crisis, a better idea may be to consider a larger loan that can assist with the problem at hand.
Can You Stop being Someone’s Guarantor?
If you have co-signed to be a guarantor for a guarantor loan in the UK, you may face some issues when it comes to removing yourself from this position. We advise you to take careful consideration before signing on to become a guarantor, as we would not wish for you to face any financial difficulties yourself. However, it is possible to remove yourself as a guarantor before the guarantor loan has been paid out. During this 14-day cooling period is the only time this is possible, unless you are able to find a suitable replacement. However, this is a change in the agreement that will need to be discussed with the guarantor loans UK lender that you signed the agreement with.