Guarantor Loans and the Benefits They Provide – The Yucatan Times
If you are facing bad days regarding financial situation, you have the option of getting a guarantor loan with the help of a guarantor. Guarantor loans can help you in situations where your bad credit may leave you in a situation where you are unable to apply for a traditional loan. Or you may have mismanagement of your financial affairs such as paying bills, installments, etc. A member of your family or a friend of yours gives you the guarantee to pay your installments in case you cannot do it.
Guarantee loans are similar to traditional loans in that you receive the loan from a lender and pay back in monthly installments; however, a third party, ie your guarantor, is also involved in this process.
Guarantor loans are beneficial when you are in urgent need of money. Many people in UK are availing of the option of secured loans. You must hold a valid UK bank account to apply for a guarantor loan.
Nowloan can help you increase your chances of getting your application approved with the support of a dedicated and hard-working team.
Advantages of guarantor loans.
Some of the important advantages of guarantor loans are as follows:
Getting a loan with bad credit
Bad decisions in the past can leave you with a bad credit history and ultimately a bad credit rating. When you have a bad credit rating, it becomes difficult to apply for a traditional loan. Secured loans offer you the advantage of getting a loan even with a bad credit rating.
Improve Your Credit Score
Secured loans offer you the incredible opportunity to improve your credit score. If you pay off your loan on time, your credit score will improve and you will be able to apply for traditional loans in the future as well.
Lower interest rates
Guarantor loans are meant to help you in difficult situations, especially with your bad credit rating. Hence, the interest rate of these loans is much lower than that of other bad credit loans, such as payday loans or credit card loans.
These loans give you more flexibility. You borrow money and choose the payment period according to your needs. You can also pay off the amount sooner than you need to, which helps you achieve even better credit scores.
If you can find a reliable guarantor, the chances of your application being approved increase dramatically. These loans are approved very quickly, sometimes within a day, and once approved, the money is transferred to the guarantor’s account within hours.
More security for lenders
Secured loans help not only borrowers but also lenders. If you are unable to repay your loan on time, someone is there to do it on your behalf, providing more security for lenders.
You can borrow enough money
Having a reliable guarantor allows you to borrow a lot more than other bad credit loans. People can borrow up to £ 10,000, which is more than enough in most cases.
Secured loans are a good choice when you have bad credit and cannot apply for traditional loans. They give you flexibility in terms of repayment, interest rate and also offer you benefits such as better credit rating; however, to do this, you first need a guarantor. You will need to find someone with a good credit rating who knows you well. The ultimate decision to approve a person as a guarantor rests with the lender.