There are all sorts of loans available and some of them are there for specific purposes of specific things. You may be looking at guarantor loans and wonder who they are actually for. Although the lenders will not specify this and will be happy to lend to anyone there are features of the loan, which mean that it is aimed at certain types of borrowers.
Those with a Poor Credit Record
With a guarantor loan, the borrower does not need to have a good credit record. This is quite different to many other types of loan where a credit check is needed and anyone that does not have a good credit record will be rejects. This type of loan therefore allows those people that cannot normally borrow significant sums of money to be able to.
Those Wanting to Borrow Between £1,000 and £10,000
If you want to borrow thousands of pounds, it is not always easy to do so. There are lenders available, but when you want this much money you will need to go through quite a rigorous credit check normally. However, if you do not have a good credit record then this will not work for you and you will need to find an alternative way to borrow the money and the guarantor loan will provide that.
Those Who Can Find a Guarantor
However, if you want a guarantor loan, you will need to find a guarantor. This is a person who has a good credit record and will be prepared to pay any repayments that you cannot afford. How easy it will be to find someone that is willing to do this for you will depend on how well off your friends and family are and how likely they are to want to help you out. It can be tricky knowing without asking people as well as normally people do not tend to be that open about their financial situation and so you may have to ask them for help.
If you fit these criteria, then it is still worth having a good think before getting out this sort of loan, as you should with any loan. You need to consider your reasoning for the loan and think about whether you feel that it is a good one. Find out how much the loan will cost you and that will allow you to decide whether you feel it is good value for money. Consider that cost and the item you are buying and whether you really think that it is worth that extra money. You should also compare different loan types and think about whether there are any others that better suit your needs. There are lots of loan options available to us and checking them out and comparing them is important as it will mean that we will be able to work out which one will most closely fit out needs. It is also really important to make sure that we compare the lenders as well. You will find that there are a lot of lenders offering this sort of loan and it is a good idea to compare them. You do not want to pay more than necessary, so compare the costs of the loan but also compare other features and then you should be able to find the one that offers you the best value for money. It might seem like a lot of work, but it will be worth it if it means that you can have a better borrowing experience as a result of it. So consider setting a bit of time aside to fit in this research.