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£50 – £5000
Representative 277.5% APR Representative Example: Borrow £700 and pay £111.27 per month for 12 months at an interest rate of 140% per annum (fixed). The total charge for credit is £635.24 The total amount repayable is £1335.24. Representative 277.5% APR (variable). Your APR rate will be based on your circumstances.
Compare Guarantor Loans with Instant Payouts
If you are searching for a reliable means to secure credit but you either have a bad credit history or still have to build one, taking out loans is a great option that you can consider. They are unsecured loans wherein a guarantor co-signs the loan deal and agrees to cover the loan’s repayment if you are unable to. This provides lenders with the kind of security that they need to consider your need for funding despite the risk involved in your credit rating. Now, if you want to know more about how the financial products work, its unique advantages, and some of the other things that can help you decide whether or not it’s the ideal loan option for you, then this short guide will help you out.
Loans in the UK and how they work
To obtain a guarantor loan in the UK, you must first source out a guarantor, generally a friend or family member, who is willing to enter in a loan deal with you and commit to make the repayments in the event that you can’t keep up with them. Here are some of the things that you might want to bear in mind on how loans work to help you secure the funding that you are looking for:
- Since there is a guarantor who will back up your loan deal, your credit rating will not become a factor when you apply for loans although the lender will still evaluate your ability to make the proper repayments. Instead, the lender will focus primarily on your guarantor’s credit history and financial stability,
- Because of the serious responsibility that the guarantor needs to shoulder in case you decide to default from your loan, it is crucial that you enjoy a solid and trusting relationship with your guarantor. The guarantor can be any person you know as long as you are financially independent from him or her – e.g. you must have a separate bank account and must not be in joint mortgage with the person.
- Since loans are unsecured, being a home owner is not a qualification in taking out the financial product in the UK. The guarantor, however, will need to meet strict eligibility criteria to be accepted. Typically, the guarantor must be a UK home owner and at least 21 years of age. Aside from being a homeowner, the guarantor must also have adequate equity in his/her property that is enough to cover the cost of the loan.
- Your guarantor will be required to submit the same information as you in your application. Credit history, proof of employment and banks statements are some of the vital information that the lender will need to see. The chances of your application get the approval from a lender will depend on both you and your guarantor’s employment status and credit history.
- As long as you can maintain all your payments on the agreed terms and conditions, your guarantor’s credit rating will not be harmed or become at risk. Also, the guarantor will only become involved in your loan deal if you miss out on your payments or default from it entirely.
While interest rates can differ from lender to lender and will depend on a lot of factors such as your guarantor’s credit history and financial stability, the APR for loans in the UK typically hover around 50%. It may appear a bit high, but it is still cheaper than many of the available options in the market especially if you have an adverse credit rating. Also, the financial products allow you to borrow large sums of money for more extended periods of time with flexible payment terms. Loans in the UK can help you secure quick and reliable funding anywhere from £1,000 to as much as £15,000, for 1-5 years.
Can I Get a Guarantor Loan With Bad Credit?
Now that you know how loans work in helping you secure the money that you need, there are also plenty of reasons that you ought to know on why the financial products are some of the best options that you can consider in the UK today. Some of the advantages that you can expect to enjoy when you take out a guarantor loan include:
- Highly accessible to people with poor credit history. Loans in the UK are designed to help borrowers with poor credit histories secure the funding that they need. If you manage to find a suitable guarantor, then taking out a reliable loan that can help you access large sums of money for more extended periods and flexible payment terms is easy. And you can enjoy all of these great benefits without having the need to put up one of your valuable assets as security or collateral to your loan deal.
- Access to large amounts of credit. Usually, if you have bad credit, your options are pretty limited and accessing large numbers of credit can be difficult because of the risk involved in your application. But because there is a guarantor with a good credit history that serves as security in case there are issues with your payments, it would be easy for you to obtain large amounts of funding. You can even take out more substantial amounts if your guarantor is a homeowner and this can benefit you tremendously especially if you are looking to obtain money to cover expensive projects and purchases.
- Fast process. Aside from allowing you to access vast amounts of credit even if you have a weak credit history, loans are also accessible in the UK because of their fast approval process. Completing an application process, from filling out a short form to getting a response from your lender, typically takes less than a day.
- Flexible loan options. Loans are also flexible loan options that allow you to borrow what you need with payment terms that are suitable to your present circumstances. Most bad credit loans have short durations, and rigid payment terms but loans allow you to enjoy longer repayment terms that are merely suitable to your needs and current situation.
- No need to risk your home or assets. Loans are safe loan options in the sense that you won’t lose anything like your home or vehicle if you default form your investment. If for some reason you find it impossible to keep up with your repayments, your guarantor will be the one to step in and shoulder your loan’s payment responsibilities.
- No credit check required. One of the most significant advantages of loans is the absence of credit check as a requirement to getting approved. While lenders will still evaluate your income and determine if it’s enough to cover your loan’s payments, your credit history is no longer necessary, and this can be extremely beneficial for people who have adverse credit ratings or have still yet to create their credit history because they have not obtained credit in the past.
- Improve your credit score. Loans will also serve as an excellent opportunity for you to improve your credit score. Once you manage to pay off your mortgage and keep up with its repayments on time and the agreed date, the credit reporting agencies will receive a report from your creditor on your positive payment behaviour, and as a result, your poor credit score will receive a boost.
With all these benefits in mind, loans can be of great help to different people in the UK especially those who have poor credit histories and are in dire need of funding. But before you apply for a guarantor loan, you should evaluate your current and future finances first to determine whether or not you can cover the payments on time. Also, it would be vital to relay this mattering concern to your guarantor so that the right arrangements involving the terms and conditions of the loan will be established, thereby avoiding possible conflict and misunderstandings in the duration of the loan.
Guarantor Loans to Improve Poor Credit
It might sound contradicting to borrow to improve your credit score, but it pretty much works that way. Every borrower in the UK has their credit record and any and all credits, payments, and missed payments will be in this file. The more missed and late payments and defaults you make, the lower your score will be, and you will be considered an automatic “risk” by any lender who evaluates your application and pulls out your credit report. Depending on how low your credit score is, you may not be able to access the funding that you need since the majority of lenders will shy away from catering your application.
With the help of loans for bad credit, you can offset the risk brought about by your bad credit rating because there is a guarantor who will agree to step in and shoulder the loan and its repayments once you can’t keep up with them. It allows you to enjoy massive amounts of credit for favourable rates and payment terms that would otherwise be impossible with most other bad credit loan options. And by paying every loan repayment on time, this will be recorded on your credit report, and your credit score will improve. As a result, allowing to access more loan options for even better rates and terms in the future.
Getting Used to Using Loans
Borrowing money from guarantor loan lenders who can provide you with flexible loan terms will allow you and your guarantor to take out a loan that can be repaid over a fixed period like three years. Having a guarantor to back you up in your loan deal is like having financial training wheels because if you miss a payment, the guarantor will step in to help you out. It is the real reason for the loan aside from providing you with the kind of funding that is suitable to your needs and present circumstances.
If you are a first-time borrower or have had trouble with credit in the past, but your friend or a family member has trust in their relationship with you, this would be a good chance to reward their faith and fortify your relationship even further. They are ready and willing to protect you so you can build or repair your credit score and ensure that you never have to miss a payment again.
Loans from Direct Lenders
By taking out loans from direct lenders, you have the freedom to choose the amount and terms that suites you best. Majority of direct lenders that you can find online are also reputable, responsible and are continually lending funds to numerous different borrowers in the UK. They are entirely licensed and will not charge you with hidden fees and upfront payments. You can also enjoy that much-needed peace of mind knowing that your application will not be relayed to other lenders without your consent or receive emails and phone calls from numerous lenders as well as you will only be dealing with one legit lender who is ready to cater your need for funding through a guarantor loan.
With a legit and reputable direct lender, you can expect to enjoy:
- Apply from a secured online website that provides vital information that will help you better understand what kind of service the lender is offering and a bit more information about the company.
- You will be able to determine what the rates and the total cost for you loan deal will be before signing a legally binding agreement.
- An authorised lender by the FCA or Financial Conduct Authority that is thoroughly committed to responsible lending.
- Any and all information that you share online through its website is safe and keep confidentiality. Only you and your lender will be able to access and view the details that you provide in your loan application.
- Direct lenders offering loans will conduct the necessary affordability checks to ensure that you can repay the money that you wish to borrow and this could mean adjusting the amount you have requested. They want to give the right guarantor loan deal that you can comfortably afford and want to make sure that it won’t become an unmanageable debt in your life.
Loans from direct lenders provide quick and convenient services that are free for use. Their websites typically operate on a secured server (https) which provides an additional layer of encryption so that your data and cookies are extra safe.
Guarantor Loans with instant funding
To obtain Guarantor loan with a direct financing, merely complete a straightforward application online with no credit check from an FCA licensed lender. Depending on your needs and present circumstances, you can take out as little as £200 to as high as £15,000 with great ease and convenience. The loan that you can take out is available from 12 to 60 months without any issues. The credit can be tailored to your present financial situation to ensure that it won’t become an uncomfortable burden to your monthly budget.
Loans with instant funding are free of charge despite the speed and convenience that they bring. And because there are plenty of online lenders in the UK who provide the reliable financial products, the chances of getting approved can be easy as long as you satisfy the essential eligibility requirements. Letting the lender know the amount that you need, the term that is comfortable to your finances, and your purpose in taking out an investment can help you manage a loan without any problems.
Fast online loan application
UK lenders providing loans with instant funding are determined to give you the financing that you availed for in the same day of your users regardless of where you are in the country. And because most lenders operate online, you can take out an instant guarantor loan through your mobile device anytime you want as long as you have connections to the internet. With the quick and reliable financial products, expect:
- A streamlined application process catered to different funding needs be it a business investment or to cover emergency expenses.
- No need to undergo any paperwork, falling in long queues, and waiting for several days for a response from your lender that is typical in many traditional forms of loans.
- Complete an application and get the money that you need within 24 hours.
Guarantor with instant funding are among the fastest and most convenient forms of financing that you can find in the UK today. So if you need cash right away, these financial products are worth considering.