Guarantor Loans (The Ultimate Guide) – Choose Wisely [CC]

If you’re looking for a loan, but your credit history isn’t great, a guarantor loan could be an option worth considering In this video we’re going to explain exactly what a guarantor loan is, and what you need to know before you apply

So first, what is a guarantor? A guarantor is a person who guarantees your repayments for a big financial commitment, such as a loan, or renting a flat From a lender’s point of view, if a friend or family member trusts you to meet your repayments, then they should do too The crucial thing to remember here, is that if you do fail to meet your repayments, your guarantor will be expected to do so It’s therefore vital that you discuss this with your potential guarantor, before entering any agreement Next, how much do guarantor loans cost? Well, if you have a poor credit history, you pose a higher risk to lenders than if your credit history is spotless – that’s just the facts

It therefore shouldn’t be a surprise that guarantor lenders will charge you slightly higher rates than those offered by the high street banks However, this doesn’t mean there aren’t deals to be had, so before you apply, make sure to compare your options to ensure you get the best deal Our guarantor loans table is a great place to start What else is there to remember? Guarantor loans are for a very particular set of circumstances and if there’s any doubt as to whether you can afford the repayments, then don’t apply Apart from that, know where you stand, compare your options, and choose wisely