- Apply for £100 - £15000
- Credit Problems OK
- Non-Homeowner Guarantors accepted
- Multiple Loan Options
- No Fees or Charges§
- Can be paid within 24 hrs
If you are considering a guarantor loan as your unsecured personal loan then you or your guarantor may have questions that need answering. Below we have created two FAQs - one for Applicants and one for those who may become a Guarantor.
If your interest is short term guarantor loans then click here for a specific FAQ section.
Yes, hopefully! Guarantor loans are designed to help people who are precisely in your situation. The way we look at it a guarantor loan will split your credit past from your credit future. It means that if you need an unsecured loan, but have been refused one by a traditional lender, you could now obtain one for up to £15,000. Your credit history is now irrelevant. You will though need to demonstrate to the lender that you can afford the repayments,
This is the means by which your historical credit problems can be made irrelevant. Traditional unsecured loans use a credit score based on your credit file to measure risk. However, if you are able to provide an acceptable guarantor then the lender can place less emphasis on this and make a more favourable lending decision.
For identity purposes and to ensure you are not bankrupt or on an IVA our lenders are likely to credit check both you and your guarantor. However, they wll not credit check you to judge the merits of lending to you. They will probably credit score you as a matter of routine but because you are providing a guarantor they will not rely on this score to make a lending decision. Because you are providing a guarantor they will see the guarantor's trust in you as a key factor. The lender will need to make sure that the guarantor is themselves credit worthy.
Use our free enquiry service to find the lenders who will lend to you in principle. Our service means:
Our lenders typically use full e-signature technology. This means both you and your guarantor can submit any extra information via their web sites and then sign the contract online. Using this technology means it is perfectly possible to get your loan paid to you within 24 hours.
Using our service means you do not need to go direct to any lender saving you considerable time and effort. The other main benefit is that you substantially raise the chances of getting the loan you want by approaching multiple lenders simultaneously.
Our guarantor loans go from £100 to £15,000. They are split into two types:
It's worth bearing in mind that all our lenders operate responsible lending policies and as such they may not be able to offer you the full amount you want. They are required to conduct an affordability assessment. They may judge that the amount you want is unaffordable if it puts you under too much financial stress. They may be prepared to reduce the loan amount and/or phase repayments over a longer time frame if this would help.
Yes, and this could certainly make sense if you would reduce your overall repayments by paying off more expensive debt. But be careful about extending the repayments too far as this could potentially increase the total cost of your debt. You need to compare the two alternatives.
With our lenders having invested in smooth processes and swift online technology it is perfectly possible to get your loan paid out within 24 hours. We frequently see examples of this. But, this presumes that you have an acceptable guarantor ready before you complete your application. Having a number of alternative guarantors lined up will also help in case your chosen lender does not accept the first one you offer them.
No. You can use our enquiry service without any need for a specific guarantor. If you do this you can quickly discover your lender options. Then as you progress your application with your preferred lender(s) you will need to provide them with your guarantor's details. Then you and your guarantor will need to agree the terms of the loan.
The basic criteria for a guarantor are as follows (varies a little by lender):
We have more detailed information about this.
Note: the guarantor does not have to own their home, but if they do it means you may be able to borrow over £7500 and obtain a lower rate loan. Because of the wide variety of lenders on our panel we are able to cater for numerous different circumstances.
Lenders will credit check the guarantor to ensure that should you be unable to make repayments the guarantor can.
Well, don't forget that these days guarantors don't have to own their home. This typically opens up the options considerably.
Have you thought hard and long about your family and friends? You may be surprised how accommodating they are if you can:
You should remember that the loan agreement is a legal agreement. You have agreed to make monthly repayments for a fixed period of time. If, one month, you are unable to make a payment in full or on time then the first thing you need to do is contact your lender. Then you can discuss the situation and work out a new plan. If your ability to repay the loan deteriorates then the lender is within their rights to request the guarantor to step in to make up the missing payments.
Obviously this situation is to be avoided at all costs as it will:
This is why lenders operate responsible lending policies and conduct affordability checks. You should never borrow more that you can afford to repay.
We don't charge any fees for using our service!
All lenders aim to provide transparency on their interest and charges. There aren't typically any extra charges over and above the interest costs. Interest is often charged on a daily basis. This is a good thing as it means that you can immediately benefit from overpaying of your loan that you make - i.e. you can reduce your future repayments because you have paid off some of the capital early. You can estimate repayments using our calculator.
Some lenders specify fixed rates for their loans while others say they are variable. You need to make sure that regardless of lender you fully understand the terms of the loan.
The first thing to decide is if you are happy to act as the guarantor for the person who has asked you:
If you are comfortable to act as their guarantor then the applicant will tell you how to provide your details to the lender. This is likely to require you to log in to the lender's website and use a reference provided by the applicant. Don't forget that the lender will want to credit check you too. They need to be confident that should the borrower fail to make a loan repayment that you can afford to.
The criteria for an "acceptable" guarantor differs by lender - your age, whether you own your home or not, your income, etc. Here's some general guidance for you:
Some lenders will need you to own your home, but for a growing number of lenders this is not relevant.
The primary risk to you if you act as as a guarantor is that the borrower fails to keep up the repayments. In these situations the lender has a right to require the you to step in to make the payment. In the worst case the lender may require you to repay the balance of the loan outstanding. If you are unwilling to do this then it will affect your credit rating and the lender could ultimately start legal proceedings against you and the borrower.
So you should only volunteer to act as someone's guarantor if you would otherwise be prepared to risk you own money. You must be able to trust the borrower. For a lender's point of view about acting as a guarantor read this.
You can change your mind about being someone's guarantor at any point until you have signed the agreement. From that moment on you are obliged to continue. You cannot pass the responsibility on to anyone else. So, do take time to consider any request to act as a guarantor and only agree to it if you are certain it is the right thing to do.
A lender needs to ensure that a guarantor has the capacity to make the loan repayments if the borrower cannot. So, they will conduct a credit check to ensure that you:
This type of credit check is called a Quotation search or a "soft" search. This type of search is visible on your credit report but it does not impact your credit score.
When it comes to getting you your guarantor loan our online service is second to none. In fact Solution-Loans.co.uk has scored based on 152 ratings & 23 user reviews for its guarantor loans service.
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