Do all Guarantor Loans come with a low APR?
After the big financial meltdown a few years ago, many people lost their jobs and had trouble paying their bills. There was a period of time when loans weren't available, and lots of people went into foreclosure on their mortgages.
Now that the economy has rebounded, while many people still struggle, there are those that have seen their finance levels rise back to their pre-recession level. But, if you have an emergency and you don't have your credit built up yet, you still can fall all the way back to the bottom of the ladder. There is a way to get a loan by using a guarantor, however, let's take a look at the best way to do that.
Now that the economy has rebounded, while many people still struggle, there are those that have seen their finance levels rise back to their pre-recession level. But, if you have an emergency and you don't have your credit built up yet, you still can fall all the way back to the bottom of the ladder. There is a way to get a loan by using a guarantor, however, let's take a look at the best way to do that.
Most Guarantor Loan Lenders Don't Even Do Credit Checks On You
Since they actually focus these types of loans on people that have bad credit histories, most of them advertise that they don't do credit checks on the borrower, but on the guarantor instead. That's a good thing if you happen to have a poor credit history that includes repossessions, late payments and written-off loans.
The way that you get a guarantor loan is by finding a friend or family member that is willing to guarantee the loan if you fail to pay. This can be difficult in some situations, but if you have someone willing to do it, you can get guarantor loans low APR.
Top Tip – Heard the term ‘APR’ before but unsure what it is? Check out the following link for more information - https://en.wikipedia.org/wiki/Representative_APR
In most cases the guarantor needs to have good credit and own real estate, but there is some leeway depending on the amount of money they have and their employment history as well.
The way that you get a guarantor loan is by finding a friend or family member that is willing to guarantee the loan if you fail to pay. This can be difficult in some situations, but if you have someone willing to do it, you can get guarantor loans low APR.
Top Tip – Heard the term ‘APR’ before but unsure what it is? Check out the following link for more information - https://en.wikipedia.org/wiki/Representative_APR
In most cases the guarantor needs to have good credit and own real estate, but there is some leeway depending on the amount of money they have and their employment history as well.
Always Make Repayments on Time
It's incredibly important to make all of the payments on time in order to rebuild your credit. If you default on the loan the person who signed for you will be responsible for payment, and they may not be happy about it. The online forums are full of people complaining about relatives that have left them with large debts to pay.
The other big difference between having a no guarantor loan and one with a guarantor is going to be the annual percentage rate of interest that you pay. If the friend or family member has excellent credit you'll get an excellent APR as well.
If you owe money or start to miss payments, our video explains how to get help that is free and confidential.
The other big difference between having a no guarantor loan and one with a guarantor is going to be the annual percentage rate of interest that you pay. If the friend or family member has excellent credit you'll get an excellent APR as well.
If you owe money or start to miss payments, our video explains how to get help that is free and confidential.