Times can be hard, and when you are need in immediate finance it can be hard to secure the cash quick enough. The need for finance can be a variety of different justified reasons, from your essential vehicle needing immediate repair, sometimes it is just to cover your expenses until next pay day. Other reasons include emergency expenses, or even to make a large purchase like a car or home improvements you can pay off over the long term.
Whatever the reason is for you, finding a reliable and trustworthy lender is key. Most people usually first turn to a bank, and this will often result in a refusal to lend you the money even if you have a good credit history. Furthermore, banks can often take a long time to actually process and approve your loan, and if you need money immediately, this is not an ideal situation.
If you have a bad credit history it can be even harder to secure the finance you need, even if you will be able to pay it back. Fortunately now you are able to take out guarantor loans. This works by getting a loan with a guarantor where in the event you cannot make the payments they will be obliged to on your behalf. This process has been seen for many years in the rental industry, where people without an established credit score have to get a guarantor before they are able to rent.
Guarantor lending company
By using a guarantor the lending company will often provide guarantor loans with low apr. This results in a lower interest payment as the company feels the money they have loaned you will be more likely to be recovered. By mitigating their risk they are more likely to lend larger amounts, for a longer period of time, as well as having a lower repayment rate. This can help ensure your finances are under control and make it much easier to pay back the money you owe.
Who Can Act as a Guarantor?
Most people often to look to a parent or sibling to act as a guarantor. This is a good idea as owing a family member a debt in the unfortunate event of defaulting on a loan will not result in being sent to the collections. If you are unable to look to a blood relative, you can equally look to a friend to see if they would be willing to act as a guarantor.
Just because you are unable to secure finance from traditional routes should not mean you have to suffer. Before looking at payday loan companies renowned for providing extortionate fees and charges you should look at securing a guarantor loan, it helps if you own your own property, but you can also apply for non-homeowner guarantor loans. Fortunately when you find yourself in a tight spot financially wise, there are companies out there willing to meet your needs and provide the help you are asking for.