There are two types of Guarantor loans and these are discussed extensively below to help you have a good knowledge of Guarantor loan if you want to apply for it. These two types are:
- Guarantor Loans up to £15,000
This credit type has these attributes:
- Unsecured: This is an unsecured guarantor loan. This implies that your assets such as valuables, car, or house cannot be claimed by the lender if you default in your payment.
- Repayment duration: It has a repayment period of 12 to 60 months or 1 to 5 years.
- APR: It has 39.9% APR for its approximate monthly payment.
- Effect of your credit score: Different lenders have different opinions about the influence that credit score should wield on the loan. Some lenders will make it a compulsion to carry out a credit check on a borrower while others do not see credit checking as a necessity.
- No penalties for redemption: Some loan lenders charge their borrowers for paying earlier than agreed. This is not a part of this loan. It is okay if you can complete your repayment before the agreed time. This will reduce your loan interest.
- Early payment: If you are screened and found to be eligible for the loan, it will be available for you within 24 hours if your guarantor accepts that.
- Homeownership is not a must: While some loans require that the guarantor must be a homeowner, guarantor loan does not make it a requirement.
- Fast response: The response to loan request is very fast. Through the website of the lender, you can get almost instant response and you can get the money deposited in the account of your guarantor within 24 hours.
- Free service: You will not be charged any extra fees apart from the regular fee on the loan.
- APR: Its representative APR is 39.9%
- Guarantor Loans up to £750
This is a short-term guarantor loan that is considered as a good alternative to the popular payday loan. This type of guarantor loan has these qualities:
- Repayment duration: The repayment duration for this small cash loan is not as long as the guarantor loan mentioned above. Its repayment period is 6 to 24 months. It has a flexible repayment plan that allows you to repay the loan in installments rather than waiting to pay it once.
- Loan amount: You can borrow between £100 and £750 if you apply for this loan.
- Interest: The interest on this small cash loan is done daily. To avoid heavy interest on the loan, it is advisable that you repay the loan as soon as possible.
- Credit rating: Your credit rating has no influence on whether you get this loan or not.
- Guarantor: It is not a compulsion that your guarantor is a homeowner although that might help.
- APR: If you are taking the loan for 12 months, the representative APR it attracts is 347%.
Either of these Guarantor Loan options is available for you if you are financially down and have a reliable guarantor to stand for you – try Loans With Guarantor.