Guarantor Loans with a Non Homeowner
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Representative 277.5% APR Representative Example: Borrow £700 and pay £111.27 per month for 12 months at an interest rate of 140% per annum (fixed). The total charge for credit is £635.24 The total amount repayable is £1335.24. Representative 277.5% APR (variable). Your APR rate will be based on your circumstances.
Guarantor loans are almost new in the market, however, it is swiftly acquiring popularity. Bad credit borrowers, who are hopeless about procuring a new line of credit, benefit from this type of loan. Unlike other types of loans, the borrower doesn’t need to have a good or excellent credit rating, however, he needs to have someone who will act as the guarantor.
If you’re planning to apply for this type of loan or you want to know more about it, this article will shed light on the concerns that are frequently asked by loan seekers.
What Is A Guarantor Loan And How Does It Work if I am a Non Homeowner?
A guarantor loan is created for people with bad credit histories, ensuring that they can meet their financial obligations easily. Unlike other lenders who see them as high risks, this loan can lend up to £5,000 as long as they can provide a guarantor. The guarantor will not be asked to provide collateral, however, he needs to co-sign and back up the borrower. His primary role is to repay the loan back in case the borrower defaulted. Therefore, the guarantor should have a disposable income and an excellent credit rating, this will help you to get the best and instant guarantor loans.
What Are The Criteria For Being A Homeowner Guarantor to get loans?
A guarantor can be anyone, however, because of his huge, challenging role, it is recommended that he is a family member or a friend of the borrower. To be considered as an eligible backer, the borrower, and the guarantor should not have any shared credit card accounts, mortgage, bank account, or other credit. It is also important the other person is employed in a good organization, has never filed bankruptcy, or has not received any court actions. Since there will be no collateral involved, the lender will demand that the guarantor is someone who has flawless credit history for years to ensure that he is not a high risk.
What Is The Role Of A Homeowner Guarantor and does the guarantor need to have good credit for such loans?
Basically, the role of a guarantor is easy as long as the borrower is responsible. Aside from co-signing all the necessary loan-related documents, he will provide bank statements. Other than that, he will not do anything. However, in the event of default, the guarantor will shoulder the loan and settle it because the borrower fails to do so. Therefore, before agreeing as a guarantor, you should know your roles and responsibilities.
What Are The Requirements As A Borrower and do you need something to present to have the credit of the non-homeowner loan?
As an applicant, you only need to comply with a few prerequisites, such as legal age (18 years old and above), proof of residency, bank account, personal information, and employment details. There’s no need to worry about collateral, such as home since tenants can apply for the guarantor loans non-homeowner. The credit score is not an issue as well although the lender will use it for reference. Nevertheless, it will not be utilized to make the decision.
How Soon Can You Get The Guarantor non-homeowner Loan?
After all the requirements are submitted, it can be a tenant guarantor loans same day payout. Usually, the loan will be transferred and be on credit to your bank account in as fast as 7 days; however, there are lenders who can provide the cash within the same day.
- Guarantor loans non-homeowner is a lifeline for people who have given up hope on securing loans because of their bad financial credit cards condition and poor credit.
- Direct lenders are willing to offer guarantor loans to people whom banks and other financial institutions (like credit cards and other lending or mortgages channel) consider high risk.
- With guarantor loans, almost anyone can get emergency cash to solve urgent financial problems that they may be facing.
What is a guarantor loan for non-homeowners?
This is a loan for blacklisted individuals and those who have bad credit scores that have prevented them from securing loans that could have changed their financial situation for the better. With this type of loan, lenders are willing to credit cash advance to customers as long as they can provide a guarantor that will stand for or act as insurance or representative for them should they default on paying back the loan when the time comes to do so.
In most cases, the guarantor will not be required to provide collateral. As long as he or she can pay off the loan if you default on repayments, then the lender would be obliged to grant you the loan.
How much can I get from a guarantor loan?
As long as you have a solid guarantor, lenders can give you as much as 5000 pounds (if that is what you want). The trick is not to overdo things. Borrow the exact amount you need to solve your financial emergencies and do your best to return or meet the money on the agreed date. Doing this will start to save you from financial problems and help you boost your delicate credit rating.
How soon will I get the cash loan?
With some lenders, you may have to wait for as much as seven days for review before funds are released into your bank account. If you meet all of the basic requirements with no gray areas left, some lenders will be willing to give you the cash that very day without any talk. This is why you must compare lenders before you choose one to work with.
Can I secure multiple guarantor loans?
If you have a guarantor who is willing to stand for you, lenders may consider giving you more than one guarantor loan. However, even if your guarantor is willing to take such a risk, it is better to finish paying off a loan before taking up another one. This will ensure that you have full control over your finances and the loan you have undertaken.
Who should I choose to be a guarantor for such loans?
While your guarantor doesn't have to be a homeowner, he or she must between the ages of 18 to 75. A suitable homeowner guarantor must have a stable source of income, doesn't have problems paying his bills and that of the family (if there is one), and can afford to take up your loan if you can no longer afford it or repay. This is a huge task, so the homeowner guarantor preferably will be someone close to you, who understands you or in agreement with you, and can gladly take up your loan responsibilities.
However, we would advise that you do everything within your power to pay up your loan. Your guarantor should only be called upon when there is absolutely no other way to pay your debt. One way of ensuring this is by borrowing only the amount that you need and can confidently pay back on the payments due date or agreement on payments. Talk to Pickaloan representative and review the requirements here in UK.