Bad Credit Guarantor Loan – Need a new car? Want to make home improvements? Want to consolidate debts?
Need a loan but have poor credit? Guarantor loans may be your best option to bag the cash you need.
There are many reasons why you can find yourself in the position of having bad credit, and the main reason for searching for bad credit guarantor loans.
Failing to keep up to date with repayments on other financial commitments can have a detrimental effect on your credit score.
When applying for finance lenders look at an individual’s credit score to decide on whether they will be accepted or declined.
If you have checked your credit rating or have a history of late payments or County Court Judgments (CCJs) etc it is likely you will be declined for a standard loan.
If you have bad credit and need a loan you are a higher risk to the provider of not paying back the agreed amount.
Due to this bad credit guarantor home loans are a better option, as you are more likely to be accepted for low credit guarantor loans.
Such loans are similar to personal loans but they require a family or friend to be a guarantor.
This means if you fall behind on the payments it is up to them to pay the loan back.
Bad Credit Guarantor Loan Lenders
Lenders usually ask that selected guarantors are property owners when you need bad credit guarantor home loans.
There are however non homeowner guarantor loans available but can be harder to find due to their limited availability.
The elected guarantor will need to have a decent credit history and if they are a homeowner, they should have enough equity in their property to be able to cover the amount you are borrowing.
However, the lender will still make sure you yourself are in a position to make the repayments as agreed.
A good thing about using bad credit guarantor loans is it can help build a good credit score, as long as you stay below your credit limit and ensure you pay the agreed amount on time.
A bad idea when taking out a guarantor loan is borrowing more than you know you are able to pay back and getting yourself in more bother financially, as well as the person that has put their name down as a guarantor.
Regardless of how you have come to having a bad credit rating don’t despair; there are suitable bad credit guarantor home loans out there on the market that will meet your needs.
If used correctly, you can make this an opportunity to work on building a better credit rating for your future at the same time.
Feel free to look around this website to get more information on guarantor loans and click on the links to find suitable guarantor loan lenders that are willing to lend, whatever your own personal circumstances are.
Do not let your low credit score or bad credit hold you back from applying, as guarantor type loans are made for situations like this.