Obtaining loans is a common practice that individuals resort to for various reasons. However, having a poor credit history or no credit history at all can make this process quite challenging. This can often lead to exceedingly high-interest rates, potentially landing you in serious financial trouble. However, there exists a solution for individuals facing such predicaments – guarantor loans.
These loans are particularly tailored for those with bad or no credit history and involve a secondary individual stepping in to cover repayments if the primary individual defaults. This method ensures that the loan remains unsecured and disassociated from any properties.
A significant benefit of guarantor loans is their lower interest rates and the absence of initial arrangement fees. These types of loans present an advantageous option for non-homeowners as well, as the loan repayment responsibility falls on the second individual in case of the borrower’s inability to pay back the loan. Also, making timely repayments can contribute positively to your credit history.
Landing a guarantor, who could be anyone willing to help and who is not financially connected to you, puts you on the fast track towards obtaining the required loan. If both you and the guarantor are employed full-time, you can conveniently apply for loans ranging from £500 to £5,000 over terms of 12 to 60 months at www.1ststop.co.uk.
A fundamental stipulation is that the guarantor should possess a good credit history and own a property in the UK. After you’ve identified an appropriate guarantor, you can start the application process, and you’ll soon have your loan approved.
