About Guarantor Loans
A guarantor loan is a type of loan designed for people with a “less than perfect” credit history. Perhaps you have missed a loan repayment within the last couple of years, or even got as far as to default on your payments or a County Court Judgement (CCJ) - when taking out a guarantor loan the lender will overlook the majority of these situations with the help of a friend or family member to “back you up”, and give you their seal of approval.
By using a guarantor to back up your application, the lender is able to lend you more - up to £12,000 - at a more competitive rate than other lenders designed to help those with a poor credit history - as low as 29.9% in some cases.
This does mean that there is some additional paperwork to fill out compared to the more traditional instalment loans available. But not to worry, you can still do all of this online, from signing your documentation to uploading any required supporting documents.
Who Can Be Your Guarantor
There are plenty of different lenders in the market now who will accept vastly different types of guarantor for your loan. So unlike a couple of years ago, tenants (or non-homeowners in general) are a viable option - although the loan amount is often reduced to a maximum of £5,000. A homeowner with good credit will give you access to the best rates and highest loan amounts.
Employment status will also have an effect, an employed guarantor with a fixed income is ideal although if they are self-employed we also have some options available. We can help with guarantors aged anywhere between 18 and 75. Most importantly the guarantor should have a fair or better credit history, with no bankruptcy, IVAs or recent CCJs or defaults.
Guarantor Lender vs Guarantor Loan Finder
As you can see above, there are many different options when it comes to guarantor lenders. Each of them accept different types of applicants and guarantors. That’s what we specialise in. Applying directly to every lender to find one that fits your circumstances can take a long time, and unfortunately you also risk a lot of wasted time on the phone, and gathering the required documentation, only to find out right at the end the lender is actually unable to help.
With us you can avoid this frustration. We will filter the lenders down for you based on your situation, and only put you through to the companies most likely to be able to help. Best of all, we do not charge any fees at all for the service. If your loans pays out the lender will pay us commission, this is the only way we make money so it is in our best interest to find you a lender that really will get you the money you need.
How To Get Your Guarantor Loan Same Day
If you need your loan in a hurry (perhaps you need to consolidate some outstanding debt or you have an unexpected payment) then we will help accomodate your urgency. A lot of the lenders we work with will endeavour to turn your loan application round as quickly as possible as long as they have everything they need to complete off both yourself - as the borrower - and your guarantor.
Some of the things you should ensure if you are looking for your loan on the same day is that:
- You have a suitable guarantor in mind (see above “Who Can Be Your Guarantor” for more information);
- You have some documentation available if it is required (see below “Supporting Documents” for more information);
- You and your guarantor are free to speak to the lender on the phone.
If you are prepared, a same day loan is definitely not our of the question.
While some of the lenders we work with will only need to carry out electronic checks to confirm your address, identification and income, some lenders will need to see proof of this in the form of supporting documentation. If this is the case, you will usually be required to supply copies of the following:
- Passport or driving licence as proof of ID;
- Recent payslip from within the last 3 months to prove your income;
- Full months bank statement, again, from within the last 3 months as proof of your monthly income and expenditure;
- Utility bill or similar to prove your address.
You can send these in using numerous different methods:
- Scan and email;
- Smartphone photo and email
- Smartphone photo and SMS
- Scan, print and post;
- Photocopy and post;
- Print screen and email if computerised documents.
There are, of course, other methods of sending in your documents, if you explain your situation to us we should be able to suggest the optimal method for you.