Everyone is feeling the pinch during the current economic climate and even more so during the festive season
. People are searching high and low for loans and credit so they can have a little extra cash over Christmas. If you have a poor credit history then this may prove a lot harder than you would hope for, however help is at hand! If you have had trouble obtaining credit in the past then a guarantor loan may be a finance product which is suitable for you.
Guarantor Loans are the same as a normal unsecured loan, the only difference is that the applicant need a guarantor to back the finance. This adds an extra level of security for the lender and ultimately allows them to lend to people with a poor credit history at rates which are much more competitive than you would normally expect.
These types of loans usually span over a longer period than a typical payday loan would do, but the APR is also much lower. This allows the applicant to borrow a considerable amount of money and not repay too much interest compared to other credit products such as log book loans.
You may ask, how can I find a guarantor or who can guarantor my loan? Well normally it can be anyone you know who is a homeowner, they usually have to earn an income and also have quite a good credit history as ultimately it will be the guarantors responsibility to repay the loan, should the applicant default on several payments.
If you are seeking one of these products then make sure you have a guarantor in mind and that he or she is willing to back your application then it should be fairly smooth sailing as long as you both meet the criteria of the lender!