First off, you should know what a guarantor loan really is. A guarantor loan is one of the most convenient ways for you to buy a property with no deposit as it lets you use the equity from someone else’s property, someone such as a family member or your parents, so that you can easily purchase a house on your own.
In simpler words, a guarantor is basically someone who acts as a second person to take care of the unsecured loans in case of financial difficulties. These loans can be of 1 to 5 years and you are allowed to borrow as much money as needed between 1,000 and 10,000 pounds. These loans are quite helpful for people who have bad credit as they can use these loans as a safety net. Here’s how you determine whether a guarantor loan is right for you or not.
Eligibility for Guarantor Loans
If you want to know if a guarantor loan is right for you or not, you need to understand how lenders will qualify you as eligible or not to buy a guarantor loan. Here are some of the criteria that lenders will base you on, but one thing you should keep in mind is that every lender is different and has different eligibility criteria for individuals, so it is always a safe idea to read up on each lender before getting into the market to buy a guarantor loan:
- Someone who is a guarantor should be able to pay your loans and if they cannot pay your loan, the guarantor will get a credit check against them.
- The guarantor and the individual both should be 18 years old and above.
- Employment is extremely mandatory and important for the individual and the guarantor because they should be able to provide pay checks and income.
- The individual and the guarantor both need to be able to provide original copies of bank statements and utility bills.
- This may depend on lender to lender, but a few lenders will only provide the guarantor if they own their own homes.
- The individual and the guarantors all need to be residents in the UK.
To find out whether you are eligible for a guarantor loan and whether it is the right decision for you or not, you need to be able to fit the criteria given above to apply for a guarantor loan. If you think you are eligible and meet any of the criterions, you can always check the lenders list and find out the best and reasonable prices that different lenders are offering. When you have decided on a lender, you can fill out your personal information and the amount of loan that you require to borrow with the specific time period given, your chosen lender will then let you know how much you will need to pay them every month. Majority of the time, it’s a fixed monthly amount. You should always make sure to read the terms and conditions for any lenders before you decide to chose them or apply for them.
Is My Credit Score Important For Me To Be Eligible For Guarantor Loans?
It is not always important that you have a perfect credit score, and lenders do not always check your credit history either, but they will always make sure to check the guarantor’s credit history so that they can make sure that they can approve your request for a money loan. If the individual cannot pay or repay their payments, the guarantor must be able to pay for them and if they cannot provide that money within the time period; this will have a bad affect on their guarantor credit history.