Trying to get credit when your credit rating is less than perfect has become much more difficult in recently, particularly since the credit crunch hit and lenders are much more cautious about who they lend to.
A guarantor loan may be one alternative you may wish to consider. A relatively new idea, guarantor loans appeal to people who have suffered in their personal financial lives, may have previously been made redundant and been blacklisted as their previously good credit rating turned all to quickly in to a bad credit rating.
Guarantor loans can prove helpful in repairing your credit rating. The loans themselves are associated with the name of the applicant, rather than the person that is guaranteeing the loan and as the guarantor will have to have an average to good credit rating in order to act as a guarantor, provided the payments are maintained, the applicant will benefit from the enhanced credit worthiness of the guarantor.
Guarantor loans are unsecured so that in the unfortunate event that the borrower defaults on their payments, the guarantor will not lose their home because of it as the loan is not secured on property. It should however be noted that an unsecured debt could turn into a secured debt if the creditor decides to go to court although these measures are usually taken as a last resort when no other arrangement can be made.
Guarantor loans are not much more expensive than a normal unsecured loan although unsecured loans as a rule tend to be more expensive than secured loans. The Annual Percentage Rate (APR) of a guarantor loan, may be slightly higher than the normal unsecured APR as the loan is based on the financial status of the person acting for the borrower (the guarantor), rather than the borrower himself.
Almost anybody you know can be your guarantor, so even if you don't have a relative who could help, you can still ask a friend, colleague or neighbour to help you. - 30462
A guarantor loan may be one alternative you may wish to consider. A relatively new idea, guarantor loans appeal to people who have suffered in their personal financial lives, may have previously been made redundant and been blacklisted as their previously good credit rating turned all to quickly in to a bad credit rating.
Guarantor loans can prove helpful in repairing your credit rating. The loans themselves are associated with the name of the applicant, rather than the person that is guaranteeing the loan and as the guarantor will have to have an average to good credit rating in order to act as a guarantor, provided the payments are maintained, the applicant will benefit from the enhanced credit worthiness of the guarantor.
Guarantor loans are unsecured so that in the unfortunate event that the borrower defaults on their payments, the guarantor will not lose their home because of it as the loan is not secured on property. It should however be noted that an unsecured debt could turn into a secured debt if the creditor decides to go to court although these measures are usually taken as a last resort when no other arrangement can be made.
Guarantor loans are not much more expensive than a normal unsecured loan although unsecured loans as a rule tend to be more expensive than secured loans. The Annual Percentage Rate (APR) of a guarantor loan, may be slightly higher than the normal unsecured APR as the loan is based on the financial status of the person acting for the borrower (the guarantor), rather than the borrower himself.
Almost anybody you know can be your guarantor, so even if you don't have a relative who could help, you can still ask a friend, colleague or neighbour to help you. - 30462
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To find out more about Guarantor Loans and Unsecured Guarantor Loans visit 24-7loans.net
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