subject: Guarantor loans and Unsecured loans vs Bank Loans [print this page] Guarantor loans and Unsecured loans vs Bank Loans
As most of us know getting a loan can be extremely difficult if we do not own our own property, in truth acquiring unsecured loans such as guarantor loans are near to being a common option when you've got a bad credit, ccjs, or are unemployed and on benefits. Having said that, if you're a loan finder hunting for unsecured loans then a great starting point is actually your local high street bank. In case you have good credit then there's a great opportunity the bank will probably offer you an unsecured loan at a good low APR rate. This is normal for banks, if you have good credit unsecured loans are certainly not an issue, on the other hand for people with poor credit ratings or simply bad credit then the unsecured loans option you might want to look at are guarantor loans. Banks offer simple solutions to those who it believes may very well pay the loan back. Guarantor loans are for those which they breath run into financial difficulty during the past and are situated in need of credit but the banks have denied.
Generally the maximum guarantor loan total is actually 5000 but it will depend on largely on the loan providers themselves. The obligation of being a guarantor is simple, if the consumer pays back the loan in full by making payments on time then the guarantor will not hear about the loan ever again. If the borrower fails to make just one repayment then the guarantor will become responsible for that payment and the entire content of the loan. It's a very heavy responsibility if you think about that you the guarantor may have to pay back a loan you never received the money for.
This particular pattern is really likely to carry on until eventually the current economic problems concludes, which may be the equivalent of five years to unwind through the UK financial systems. The interesting thing is while banks do not wish to lend directly to subprime applicants they are absolutely happy to lend tens of millions of pounds to companies that will in turn lend this money to subprime candidates. It's an irksome world we live in these days and the banks are helping it become stranger by the day as people with bad credit are thrown at the mercy of unsecured loans lenders.
