If you are looking at unsecure loans that do not need collateral, then you must go for the guarantor loans. If you have a history of bad credit, and you do not find any other source, then this is the type of loan that you can avail if you find a guarantor. Most of these loans can be repaid anytime between one year to six years. If you are able to find a friend or a family member who is willing to be your guarantor, then you will be providing their details for availing this loan.
The onus is one the guarantor to repay the entire loan taken for you, if in any case you are unable to repay the loan. Most of these loans have very low interest rates compared to other bank loans. Only as a last option will your guarantor repay your loan, if in any case you are not in a position to do so. You do not need any kind of fee to apply for this type of a loan.
These are one of the most trusted loans that people take as a last resort. But, it is important that the guarantor that you choose must have a good credit history and a good bank record. It is also required that your guarantor must also own a home. If you are able to repay all the loans, then you will be able to rebuild your credit history.
You must understand that your guarantor will lose their home as well if you are unable to repay the loans. Before you take the help of a guarantor, all the terms and conditions must be clarified with them. You can get a loan anywhere between thousand to seven thousand pounds for a period of one to six years.
There are many guarantor loan lenders available online. Each has a different interest and repayment rate. You can compare interest and repayment rates, policies, and get a quick approval of this kind of loan. Most of the paper work is done within a single day and you will be credited with the loan amount within twenty four hours of application. This might vary for different lenders.
Most of the lenders of guarantor loans are either individuals or private financial firms who have their own set of terms and conditions. A few lenders in UK will also transfer the funds in your account on the same day of application. Unless and until you have a bad credit history, do not apply for this loan. There are many online guarantor loan calculators available where you can punch in the details of the amount that you need and get the result of the monthly repayments that you have to make for that fixed amount.
Most of them have a fixed percentage of interest rate per annum. When you use these calculators, you will get a clear picture of the amount that you will be repaying over a period of twelve months. Most of the firms who provide these loans are direct lenders and not brokers. You can find more information on Guarantor Loans Calculator Website.