If you have bad credit it may seem like it’s impossible to get a loan for things that you need. However, guarantor loans were created and designed just for people with bad credit or even no credit at all. Here I will explain some things about guarantor loans and give you some tips on how you can find loans and get approved for your loan as soon as possible.
What is Bad Credit?
“Bad Credit” is an expression that indicates a person having a high credit risk to lenders. There are a wide array of factors that go into how credit bureaus calculate a person’s credit score. Anything from a missed payment to full on bankruptcy can reflect negatively on a person’s credit score. You may also have a poor credit score just because you have not had time to build your credit score yet.
Whatever your situation, you being considered a high credit risk can hugely impact your ability to be approved for any loans and what rates you will get. Luckily for you guarantor loans are designed just for you.
Bad credit guarantor loans
Guarantor loans are great if you have less than perfect credit. It will require that you have a guarantor to co-sign on the loan with you. The great thing is that the lender you are getting an offer from will factor in your guarantor’s credit score. So, if your guarantor has good credit then you can get a loan as though you have good credit. Typically your guarantor is going to be someone in your family or a close friend. However, there are no actual guidelines on who can and can’t be your guarantor. By getting a loan in this manner you can get around your bad credit and still get the loan you need and also start to repair or build your credit score. As long as you make your payments on time, completing your loan agreement with no issues should boost your credit a reasonable amount. Which in turn will help open up your financial options later on. Check here.
Where Can I Find a Guarantor Loan for Bad Credit?
In most situations the best way to find a guarantor that you can be approved for even with your poor credit is to speak with a broker or directly with a lender. A authorized broker will be able to give you information about the average rates and terms for the loan you are seeking. Which will help you greatly in picking which loan is the best for you.
An advantage of talking to a broker before you speak with a lender is that they may be able to tell you what lenders are more likely accept your loan application rather than reject you. This is important because being rejected by a lender can reflect negatively on your credit score.
When looking for a loan with bad credit things can seem like they are impossible. However with a guarantor loan you can still get the funding you need even with bad credit. Find someone who can be your guarantor and understands your financial situation and contact a broker and you will get your loan in no time! Check out this: https://www.trusttwo.co.uk/borrowing-from-us/is-a-guarantor-loan-right-for-me