When you need cash to pay for an unplanned expense, you want to know you can get a guaranteed loan. Whether you need to repair your car, to travel at short notice or settle a large bill, borrowing the money and spreading the cost makes life a lot easier.
Even if you have a poor credit score, or have had financial difficulties in the past, you can borrow money if you know what type of loan to apply for. It’s not possible to guarantee that a loan is available for you, but we can help boost your chances of getting one.
What is a guaranteed loan?
If you have less than perfect credit, high street banks are likely to refuse your application for a loan. Traditional lenders are looking for people with high credit scores and very little risk. They are not prepared to offer a loan to anyone who has missed payments in the past. But there are many people who have bad credit or a short credit history who need a loan to see them through.
That doesn’t mean that they cannot borrow money – you simply need to contact the right company who is sympathetic to your situation. One way to borrow money is to choose a guaranteed 1000 pound loan. A guaranteed or guarantor loan is one where another person co-signs the agreement with you. This third party promises to settle your debt if you fail to pay. Most commonly, the third party is a family member, or someone who knows you well and is prepared to help.
The second person must sign to agree with this arrangement, and understand that they are responsible for the loan repayments if you don’t pay as agreed. With two people agreeing to the loan, your chances of being able to borrow the money are greatly improved, it’s almost a guaranteed loan.
How does a guarantor loan work?
When you have poor credit, a guarantor loan will lift your chances of borrowing the money you need. That’s because the guarantor’s credit will boost yours. As far as the lender is concerned, you are much less of a risk and more likely to meet all the repayments on time. The third party is, in effect, a safety net for lenders. A guarantor loan is a great way to borrow money for people who would normally struggle to be approved.
Who can be a guarantor for you? The guarantor must be at least 18 years old and, in some circumstances, be over 21. The person must be a close friend or someone from your family who has a British bank account. Ideally, they will have a good credit score themselves. They must understand that their credit rating might be affected if you don’t make the agreed repayments on time.
After the guarantor has signed the paperwork, they don’t need to have anything more to do with the financial agreement. They don’t need to oversee your repayments, it’s your responsibility to pay back the guaranteed loan on time and in full. As long as that obligation is met, the guarantor is not involved. They will only be contacted if you fail to make your repayments.
Is a guaranteed loan my best option?
A guarantor loan isn’t right for everyone. Some people don’t want to ask a friend to do this for them, and others simply don’t have a person to turn to. There are payday loans, emergency loans and other bad credit loans available that you might be eligible for. However, there are benefits of getting a guarantor loan.
With someone co-signing your loan, you could borrow more than if you apply individually. In exceptional circumstances, loans of up to £5000 can be achieved, although most often the amount is for less than £1000. Your chances of being approved for the money is greater with a guarantor, and that’s important if you really can’t do without the extra cash at this moment.
And a final pro to a guaranteed loan is that your own credit will improve if you repay the money in full as agreed. Meeting all conditions of a loan is the best way to get better credit – it proves that you are a low risk.
We have compiled a list of FAQs to answer some of the queries you could have about guaranteed loans:
What can I use a guaranteed loan for?
Once you have the money in your bank account, you can use it to pay for the things you need. There are no restrictions on what you can use the cash for.
Do I have to have a guarantor?
You can choose to apply for a guarantor loan if you would normally be rejected for a loan. There are lenders who are happy to work with bad credit applicants, so you could have other options.
Does my guarantor have to be family?
No, it can be a friend who knows you well and is happy to assist you borrow the money you need.
Does a guaranteed loan cost more?
The interest rates on this type of loan is higher than a standard loan, so make sure you repay the amount as quickly as you can to keep the added interest down.
What happens if I don’t make the repayments?
It’s very important to meet your agreed payments. If you don’t, then the lender will demand the money from your guarantor as a last resort. This could affect your relationship with the person who co-signed with you.
How do I apply for a guaranteed loan?
With us, everything is done online. You will need to supply your personal details, your UK bank account details and some facts about your job.
Is a credit check needed?
A credit check will be part of the application process to make sure you can pay back the money. A lender from our panel of trusted partners will be matched with you, and they will forward you their terms within minutes.