Getting a guarantor can seem like a daunting task. If you wish to obtain funds swiftly, you will shorten the application process by getting a guarantor.
The internet has provided ever-expanding possibilities. With service providers taking their businesses online, you can reap huge benefits. We take a look at how the internet has revolutionized finding a guarantor.
Criteria for choosing a Guarantor
You may be fortunate enough to find someone who seeks to guarantee your loan. However, there are a few factors that make them eligible.
- They should have a UK address
- They should be able to meet monthly repayments
- They should be a homeowner
- Be between 23-75 years
- Their credit score should be good
Using an authorized loan broker
If you are online and wish to have someone journey with you, a broker is ideal. A loan broker acts as an agent of the financial lender. Not only do they help you get that loan, but they possess the expertise of the subject matter. The brokers will elevate your journey by choosing the best loan that works for you.
The internet is a dynamic platform with a lot of competition. Therefore, as you research the best loan to take, you will most likely find a vast array that can seem confusing. However, a loan broker will be happy to take out the legwork and find you that ideal loan.
The crown of the jewel is that the loan broker can help you get that loan and, in essence, act as a guarantor. Getting past the Financial Conduct Authority is not a walk by the park. Lenders trust loan brokers that are authorized by FCA quickly and end up extending the loans easily.
You are sure to find many brokers online. However, look out for brokers that have been in the industry for a long. Many brokers know the best deals for low apr guarantor loans and are willing to hold your hand.
Reaching out to friends and family
You can use online platforms to reach out to your close friends and family. However, because they are guaranteeing your loan, they need to be people who trust you completely.
If you prefer a particular institution, you can reach out to members of your family and friends who hold their accounts in that institution. It is easy to determine their credit history then, but it’s also easy for the lender to trust them.
All you need to do is apply online for a loan and find a guarantor for some online loan providers. The lender usually calls you and your guarantor to ascertain that you will make the repayments. From there, the lender approves your loan through your guarantor’s account.
Directly going to the financial lender
To stay abreast in the online space, many lenders have websites and social media contacts that you can use to reach them. You can then explain the amount of loan you need and in exchange get the products they offer.
While financial lenders are pretty adamant about giving you a loan without a close family or friend as a guarantor, they can still help you. They can offer you products that do not need guarantors but still serve the same purpose. That way, it’s a win-win situation for both you and the lender.
Online loan providers
Online loan providers are pretty relaxed when it comes to finding a guarantor. All you need to do is introduce that loyal friend. For most guarantor loans, the terms are pretty convenient, and your friend will not have qualms.
Some of the terms for online guarantor loans include affordable repayments, the ability to use the loan for many purposes, and lack of early settlement charges. The terms aim at helping you pay up the loan quickly without the expensive aspect.
Although the online loan service providers will not find a guarantor for you, they play a crucial role. By having appealing terms, the lender compels your friend to act as a guarantor.
Getting a Joint Loan
If you are seeking out a good loan, finding a partner can help you. Although this does not mean that the person is a guarantor, it gives you a bigger chance at getting that loan.
The credit risk will reduce significantly as your chances of repaying the loan increase. Ultimately, you can get a bigger loan that could previously need a guarantor.
What are the Benefits of having a guarantor?
Once you have a guarantor, you can secure financing quickly. The marvelous bit is that you can get 100% of the requested amount within the shortest time possible.
Lenders are oblivious of your credit history if you have a guarantor. If you had financial distress in the past that led to bad credit history, the lenders do not penalize you for this. Of course, the guarantor’s assets might be at peril in case of default, but this should not happen with good intentions.
Further, you do not need to pay an arm and a leg to get that loan. Once you have a guarantor, you do not need to pay the hidden fee for negotiation. The process is straightforward, and you can get a massive tiding with the ideal guarantor.
Finding a guarantor online is a formidable task as the guarantor needs to know you well. However, there are plenty of options that you can use to get that guarantor loan ultimately.