Apply for a loan of up to £25,000*
Get Your Cash!
Guarantor Loans with Same Day Payout
Having a bad credit score is common although nobody wants it in the first place. The poor credit rating is a clear indication that obtaining a new credit line is impossible. This is why bad credit borrowers, who are considered as high risk, are worried about applying for a new loan. However, competitors are developing their strategies to acquire new clients every day, resulting to new financing alternatives. Apart from bad credit loans, there is guarantor loans same day payout available to assist them financially.
What Are Guarantor Loans?
A guarantor is a type of loan that requires the borrower to bring someone who will co-sign with them in the loan contract. From the term itself, the other person will serve as the guarantee to repay the loan back in the event of default. Although anybody, who is of the right age, can be a guarantor, it is ideal that the companion is someone who trusts and knows the borrower. The loan seeker should also be of legal age (18+ and above) and employed.
How Guarantor Loans Same Day Payout Work?
The loan is intended for people with bad credit or someone who has never borrowed from a bank or lending facility before. Since there is no credit history to review, the borrower is still not considered as a good borrower since the lender has no basis about his financial background. So, instead of providing collateral, the applicant will look for another person who will act as the guarantor. The guarantor should have an exceptional credit rating and a disposable income. This way, the lender will have a security against the loan and the borrower can get guarantor loans low apr. Although anyone can become a guarantor, it is better to seek assistance from friends or family members.
Once all the requirements are submitted and the application has been approved, the money will be released on the same business day. Therefore, the loan is advantageous during emergency cases and for urgent matters.
What Is The Role Of The Guarantor
As mentioned above, the guarantor will co-sign with the borrower, ensuring that he will handle the loan in case the borrower is not able to do so. Sometimes, he will vouch for the loan applicant, therefore, he must fully understand his role in the loan application. Using a guarantor is not only beneficial to get approval; it is also significant in improving the credit history of the borrower, providing that he will faithfully do his duties as a responsible borrower this time.
Advantages Of Using Guarantor Loan
Applying for the best guarantor loans brings a handful of benefits for the borrower. Basically, since there is no required credit check, the debtor can put himself at ease because his application will be approved. Although some lenders will still look at it, the rating will not be a crucial factor to be eligible. Another advantage is that it can boost the credit score. Through the guarantor, the borrower can make up the mistakes he made in the past and not only that — he can borrow a larger amount. Borrowing a huge amount of cash is almost impossible if the credit rating is unfavorable, but with a guarantor who will support the loan application, the borrower can go home with the money he needs in no time.
Our Lending Panel
We have relationships with the best institutions in the financial market, so we can bring you the highest quality loans around.