How to Get a Small Loan – Avoiding Bankruptcy

May 16, 2012 by  Filed under: Loans 

Guarantor loans are personal unsecured loans for people with an adverse credit history. If you have a bad credit history then a guarantor loan might be the right solution for you. If you know someone who is willing to back up your loan application, you are likely qualify for these types of loans.

You will have to make sure that your guarantor is suitable to be a guarantor. A guarantor has to be a home owner, has to have some sort of income and most important has to have a decent or good credit rating. The only person who can’t be your guarantor is your partner or spouse because they are financially connected to you. People you might want to consider are friends, parents, siblings, aunts, uncles, grandparents (younger than 69 years of age) colleagues, landlord, neighbors etc.

It is wise to think very carefully before you commit and take out a guarantor loan. The interest rates are higher than normal. If you are struggling already to make your monthly payments, than it might be a wise idea to enter a debt management program or look in to IVA. These programs can lower your monthly payments with hundreds of pound. But they will affect your ability to apply for other financial products.

The guarantor is ultimately personally responsible for your loan, so make sure that you can repay a guarantor loan. And therefore being a guarantor is not free of risk. Guarantors are often closely connected to you could harm or change your relationship with this person if you are unable to pay back the guarantor loan. As mentioned before it can be a very good solution to overcome a financially difficult time, as long as you are sure you can repay the monthly payments.

Guarantor loans vary from £1,000 up to £ 7,500. De repayment terms differ from 24 up to 72 months. It is possible to pay back the amount in full before the end of the agreed repayment term. If you are able to do so it is definitely a wise decision to make because you will receive the lender fee back pro ratio.

There are only a couple of lenders in the UK that actually offer these types of loans and they are very similar. Make sure that a guarantor loan is the right decision for you and that you are able to repay the loan. Find a good guarantor who trusts you and is willing to help you out. And finally make sure that you don’t let your guarantor down.

For more information about guarantor loans or debt management please visit our website. or call us at 0800 4332099

Article Source:

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

You must be logged in to post a comment.

Prev Post:
Next Post: