| If you need a unsecured loan but you have poor credit, | | | | any reason then they will be ones who are responsible |
| CCJs or a history of credit problems, it can be difficult | | | | for repayment. |
| to acquire a loan. Sure some payday loan lenders | | | | What does the guarantor have to do? |
| and small cash loan lenders may be able to help you | | | | If the loan is repaid on time, then a guarantor doesn't |
| but usually the amount they can lend is limited to | | | | need to do anything. If however there is a problem |
| around £500 or so. If you need a larger loan say | | | | with the repayments then the guarantor needs to step |
| up to £3000 or so, most lenders are unable to help. | | | | in to bring the loan up to date. The loan company will |
| However there is a solution. | | | | provide the guarantor with a regular statement of |
| Guarantor loans are an ideal way of getting credit | | | | account so they can check the loan is being paid on |
| even if you have been turned down in the past. A | | | | time. |
| guarantor guarantees payment of the loan if you | | | | Do I need credit checks to get a loan? |
| should be unable to meet the repayments for any | | | | No, as you have provided a guarantor it is not |
| reason, so lending companies know they will get their | | | | necessary to credit check you, however the guarantor |
| money. The loan is still in your name, so you will be | | | | will need to have a good credit history. |
| able to build up your credit rating, but the guarantor is | | | | Is a guarantor loan a good option for me? |
| added security for the lender in case there is a | | | | If you have a poor credit history then unfortunately |
| problem with paying back the loan. | | | | there are few options open to you. Some lenders |
| Who can be a guarantor? | | | | may be willing to lend to you but at a massively high |
| Most lenders require the guarantor to be over 23, a | | | | interest rate as they are taking a risk. However |
| home owner and with a reasonable credit history. | | | | because guarantor loans are effectively secured then |
| Often parents and other relatives are willing to step in | | | | the interest rates are generally quite reasonable |
| to help, but remember if you default on the loan for | | | | making them a good option for mid value loans. |