|Loan Type||Guarantor loan|
|Loan amounts available||£2,000 – £10,000|
|Loan terms available||12 – 60 months|
|Age eligibility requirements||Minimum 18 for borrower. Age range 21 – 75 for guarantor.|
|Access for lower credit scores||Yes, provided guarantor has good credit record|
|Chance of acceptance available||No|
|Loan pay out time after approval||24 hours|
|Early repayment options||Yes|
What is a guarantor loan?
It isn’t uncommon to need a little extra support when applying for credit. It may be that you have struggled with credit repayments in the past – or it may simply be your first time borrowing. There can be a number of reasons – but lenders can be reluctant to loan to them, as they don’t know if they will be able to manage the repayments.
A guarantor loan offers a way to bridge the gap by having someone else listed on the loan to support as a safety net – reassuring lenders. Your guarantor can be a friend or family member, and they’ll be required to take up the debt if you can’t keep up repayments. That’s why it is important to choose them carefully and make sure you both understand the terms and risks involved. To be your guarantor, a person will need to:
- Be over the age of 21
- Have a UK bank account
- Have a good credit score
- Be financially independent from you
How much can I borrow with a loan from Guarantor My Loan?
The specific amount that you are eligible to borrow will depend on your personal circumstances, though Guarantor My Loan offer loans from £2000 – £10,000.
What interest rate will be on my loan?
Any interest rate on any of your loan options will be influenced by your own personal circumstances and personal credit history – but with Guarantor My Loan this can be supported via a second person. By adding a guarantor to your loan application, you could get a better rate than if you apply alone. Guarantor My Loan offer real rates, so the better your credit score, the lower the APR – which means lower monthly repayments.
If you’ve hit a few bumps in the road with your credit history or you haven’t had the opportunity to build up your credit history at all, you may find that the rates you’re offered are a bit higher. This is because you’ll appear a riskier person to lend to by lenders.
Need to give your credit score a boost? Check out our top tips for improving your credit score.
What can I use a personal loan for?
There aren’t generally many restrictions on what – or how – you use a personal loan for. People take out loans for a whole range of purposes, such as upgrading your car or home improvement. You do need to make sure that whatever amount you borrow, you are able to keep up with the repayments through the whole borrowing term.
Am I eligible for a guarantor loan?
As they will look to see if a guarantor loan is right for you, Guarantor My Loan may be able to offer you borrowing options. Your eligibility for these will be dependent on your own circumstances. You will need to be:
- Over 18 years of age
- Reside in the UK
- Have a UK bank or building society account
In addition, your guarantor will also need to meet the criteria required of them as well.
- Between 21 and 75 years of age
- Know and trust you well, and be able to give permission to be your guarantor
- Have a good credit record, and be able to take over your repayments if needed
- Have a UK Bank or building society account
It is important that you and your guarantor are able to trust each other – once they commit to being a guarantor, they cannot change their mind at a later date.
How do repayments work in a guarantor loan?
When setting up your loan application, both yours and your guarantor’s details will be provided. The repayments will still be requested of you at every monthly repayment date – however, if you can’t make the repayment, then both you and the guarantor are notified, and the guarantor is expected to step in and make the repayment. This is why it is important you have someone you know and trust to be your guarantor, and make sure they are fully aware of the terms, as not keeping up with repayments can negatively impact both credit scores.
Can I repay my loan early?
Yes, with Guarantor My Loan you can repay your loan early at no extra cost. You’ll simply need to repay the outstanding balance and any interest or fees due up to when you repay your loan. So if your circumstances change and you can afford to pay it off early, you will save money on interest.
What are the benefits to taking out a guarantor loan?
If you are confident you can take on the repayments, a guarantor loan may be right for you. Guarantor Loans can help you rebuild or improve your credit score. If you keep up the repayment products as needed, you may find yourself more eligible for other borrowing and credit options in the future.
You may find that your credit score improves enough to make you eligible for a debt consolidation loan – meaning you may be able to pay off the initial guarantor loan early.
Remember that if you are consolidating existing borrowed amounts, you may be increasing the length of the debt term, and may also increase the total amount you repay.
How do I check my eligibility for a Guarantor My Loan personal loan?
Here at Aro, we can help you check your eligibility for a Guarantor My Loan personal loan without harming your credit score. Simply fill in your details and we’ll check your personal loan options with Guarantor My Loan and over 50 other UK lenders in minutes.
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