A Credit rating or score is a very important financial measurement these days. It is a criterion that most debt institutions use to analyze the financial standing of a person. Based on this factor and other allied elements, the lender decides whether or not to provide a loan to a potential borrower. However, nothing in this world is perfect. Small financial hiccups can occur in any person’s life leading to a black spot or stain on his or her credit history. Such repayment delays or defaults due to uncontrollable factors are hard to remove from the credit score.
In the past, having a bad credit history meant no more loans or debt. But this is not the case anymore. People with a poor credit history can still get a loan approved by the lender. These are a specialized form of loan products. One such type of loan is the guarantor loan. This is a very popular loan in the UK financial markets. They are also known as loans with guarantor.
This sort of loans, as the name implies, are not secured with a physical asset or collateral, but with the guarantee of a person. This person is known as the guarantor and has to be someone having good credibility both financially and personally.
Over a short space of time it have become one of the most popular types of loans amongst borrowers. There are a number of different lending companies and institutions that offer these types of loans to their customers. Although the loans are unsecured still they are considered to be less risky and very safe. The reason for this is that if for any reason the borrower defaults or fails to repay, the loan amount will be paid back by the guarantor. These are easy to get, hassle free personal loans that can be obtained from online as well as offline sources. If you are looking for quick access to money and getting your loans approved without the hassle of getting into credit ratings, then loans with guarantor are the best choice for you.
There are a number of different advantages that such guarantor loans have on other types of loans. These may include the following:
•It is a method of rebuilding your credit history as the loan amount will be in the name of the borrower and not the guarantor
•Good repayment history will further open avenues for debt borrowing in future
•Easy to get
•Quick and fast processing
•Many online options available to compare and choose from
•Pricing of Guarantor loans are much less than other forms of loans
•These are less risky for the lenders as there is a guarantee to be repaid by the guarantor.
These are only few of the reasons why people opt for loans with guarantor. The popularity of these types of guarantor loans and lenders is increasing day by day because of all the advantages that they offer their customers.