What is a Guarantor Loan?

Sometimes a short term loan is not going to match your needs. It may be the case that you need more than £1000 or it may be that you can’t afford to pay off your short term loan in one go a month later. If you have been refused a short term loan it may be because you are unaffordable and therefore cannot repay the loan in the specified time, which is usually one month.

When this happens we often feel that there are no options available to us, but there are options available. A Guarantor loan is one of those options. A Guarantor loan works in a similar way to other forms of credit except for one crucial aspect. You must have a friend or family member who can back you up if for any reason you struggle to make a payment.

Acting as a Guarantor can help the borrower, not only to obtain the funds they need, but you may also be helping them to improve their credit rating which could have a positive impact on the way their finances are looked at in the future. Your Guarantor must be at least 18 years old. Traditionally Guarantors needed to be homeowners. However this is not the case anymore and non homeowner guarantor lenders may be able to help. In order to qualify for a guarantor loan the following criteria must be met:

Applicant:

  • 18+ years of age
  • UK bank account
  • Valid UK debit card
  • Free of Bankruptcy or IVA claims
  • UK resident (excludes Isle of Man and Channel Islands)
  • Regular income
  • Be able to afford the monthly repayments
  • Able to acquire a Guarantor

Guarantor:

  • 21+ years of age
  • UK bank account
  • Valid UK debit card
  • Free of Bankruptcy or IVA claims
  • UK resident (excludes Isle of Man and Channel Islands)
  • Good credit history
  • Be able to afford the monthly repayments

If you need some extra money, but are unable to obtain a short term loan or you cannot afford to repay the loan in a short space of time, then you can apply for a guarantor loan and receive the money within 48 hours.

Author

Ben Arhin

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