Tag Archives: Loan

What Are Guarantor Loans?

Elena Benson/ July 26, 2018/ Guarantor Loan

Guarantor loans are some of the most popular loan types of today and while you might think these loans are fast fading away, think again. There is a big demand for such loans with more people struggling to obtain a loan by themselves. The trouble for some is that they haven’t established suitable credit to get a loan and for others they just need someone to help them out. However, do you know what a guarantor loan is and how it can help you today? If you would like to learn more, read on. Loans That Have Security for Lenders What is a guarantor loan? Well, it’s a loan that has a guarantor. What does it mean? Borrowers can apply for a loan but have another sign on the loan, a guarantor that basically states they are guaranteeing the loan will be repaid. In a sense, when the borrower fails to pay the loan or defaults, the lender will look to the guarantor to pay the remainder of the loan. Lenders look to these loans as a way to reduce their overall risk of losing money when giving someone a loan. Since someone acts as a guarantor, they are more likely to get their money back either from the borrower or the guarantor. Guarantor loans online are so popular today too. Interest Rates Might Be Lower What you might not be aware of is that the overall interest rate for guarantor loans can in fact be very much reasonable. Getting lower interest is possible and while you might think no one gets lower interest, they can. The reason why is simply because a lender feels there is ample security in place (the guarantor) to almost secure payment and as such, they will work with the borrower to ensure they are happy with their loan. Remember, lenders want repeat customers and if they’re

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Applying for a Guarantor Loan? Three Things to Consider

Elena Benson/ July 26, 2018/ Guarantor Loan

When you are in need of a loan, guarantor loans online might be the best solution for you today. There are truly thousands applying online every day and it’s easy to see why so many require such loans. However, when you are applying for a guarantor loan, have you thought about a few things first? The following are a few things you might want to consider when you’re applying for a guarantor loan. What Type of Credit Your Guarantor Has You have asked someone to be a guarantor, which is great but have you thought about their credit? If the guarantor doesn’t have a good track record themselves when it comes to borrowing money, it’s unlikely you’ll be suitable for the loan. You have to ask your guarantor about their credit so that you can be sure you’ve asked the best person. If there are issues with the guarantor’s financial record such as defaulting on loans themselves, they aren’t the best people to help you out. Guarantor loans and their lenders are strict so be careful. Knowing Your Budget for the Loan Do you know how much you can afford to spend on the loan? We’re not talking about how much you’re going to pay back overall but rather the monthly payments. Are you able to afford more than $50 per month on the loan or far less? If you don’t know your monthly budget for the loan, you could get into more financial difficulties than you could ever imagine. It’s time to think about working out a budget for these loans and how much you’re able to put towards them each month. Guarantor loans online are useful but remember they aren’t without their troubles if you can’t afford them. You have to think about such things. How Much You Really Need to Borrow You will also have to think very carefully

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