Guarantor loans are a new form of lending, they offer people with bad credit a chance borrow some money for mostly any reason (except maybe leaving the country) black horse finance. Numerous places have nothing but bad things to say about these guarantor loans as not only do they often have a twisted view of the current financial market, but often do not actually know the full facts about how these loans work black horse finance.
I thought a little article debunking some of the main myths scattered about the internet would help a lot of prospective borrowers make up there own mind black horse finance.
So without further ado I present to you the top 5 myths about guarantor loans debunked once and for all:
Guarantor’s must hand over there bank details
This is not true, while some lenders require the guarantor’s bank details there are also a couple that have no need for this black horse finance. These are usually smaller companies that strive to build up a strong relationship with the borrower and try not to have to rely on the guarantor unless contact with the borrower dies down black horse finance.
The interest rates offered are ludicrously high
While there is some truth in this statement it is important to consider the alternatives. Unsecured lenders are few and far between, back when things went sour towards the end of 2007 the majority of the major lenders pulled out, from Welcome Finance to much more recently the lending arm of Lloyds TSB: Black Horse Finance black horse finance.
Once lender that has survived is Everyday Loans, the listed interest rate found on Money Supermarket is 34.9%. This is for people with a good to fair credit history. Another lender is Provident, they offer doorstep loans for people with bad credit; this means someone comes to your door once a week/month to collect your payments. The interest rate listed for Provident is 272.2%.
Last of all we have pay day loans, I am sure you have heard of Wonga, they offer an interest rate of 360% (although it should be noted the APR is 4214%) black horse finance.
Now taking a look at the rate UK Credit offer through Guarantor Loans Online the interest actually looks very reasonable for bad credit loans black horse finance. They advertise an interest rate of 43.85% on all loans direct and a slightly lower rate on all broker business. Unlike some of the other companies mentioned above, these rates are also fixed black horse finance.
The loan is secured against the guarantor’s property
Guarantors are required to be homeowners; however unlike secured loans absolutely nothing is secured on the property. The only reason guarantors must be homeowner is because they are much more likely to make loan repayments to avoid it affecting their mortgage rates. They also will usually have a proven financial track record black horse finance.
You can only get a small loan
Guarantor loan amounts are constantly increasing; currently the maximum you can borrow is £5000. When one lender increases the amount offered, most will follow suit black horse finance. This is great for consumers and means that hopefully we will be seeing amounts breaking through £5000 in the next year or so.
Guarantor loans go on the guarantor’s credit file and not the borrowers
Guarantor loans are in the borrower’s name, the loan will not show up on the guarantor’s credit file unless the loan defaults (if both borrower and guarantor refuse to pay). This means it is a good way to fix a bad credit file and hopefully be able to in the future go for a more mainstream option through a bank. The guarantor need not worry about the loan stopping them getting finance in their own name if necessary black horse finance.
So there you have it, hopefully this has been insightful and helped out a bit when deciding whether or not to go down this route. As always it is very important to think long and hard about taking out a loan, especially if getting a close friend or relative involved black horse finance.
Alex Clarke invites you to find out more about guarantor loans and the expanding guarantor loan market. Alternatively you can apply for a guarantor loan up to £5000 at directly. You can also read another article on loans with a guarantor black horse finance.
Many of us think that we are contended with what we have, but the fact is that at some point in life we just need to get indebted. Taking a loan is an essential part of life. But this has to be planned very carefully. Now borrowing a loan worth a fortune when you earn peanuts would be illogical. It would land up to nothing but a legal crime as you will not be able to pay and as a result you would end up behind the bars. Hence, you must take evaluated loans only when required.
There are several companies that give loans. Some of the leading names include HSBC, GE Money, Black Horse Finance, FirstPlus, Alliance and Leicester, Blemain Finance, Paragon, etc. Now, there are two ways of taking the loan. One is to contact the bank or financial institution directly and seek help. The other is to get to them through an agent. These are many people who become authorized agents and help you get loan from several banks. You can contact them online. But how do you know if the person you have located on the internet is genuine or not? Given here are some tips to check out the same black horse finance.
The first and foremost thing is to check if he or she is an authorized agent or not. For that tell them to give their dealership or agent number. You can check the details of the person with the bank through this number black horse finance. Also if you have got through the person through his or her own web page or website, see that it must state the contact details of the person. The essential parts of the details are contact number, address and company name if any. Call up the given number to confirm about him or her.
Next important thing is that you must not share all your financial details until and unless you are sure that he or she is genuine. Tell them the income but not the work place. State the area but not the full address. If possible initially tell them just an internet name. Reveal the real name only when you are sure of the person.
You must cross check the details of the package they offer with the bank’s own website. If you find any variation or some points are not clear, do not be hesitant to ask for the clarification. There is no issue in acting a complete fool while asking these questions. This would be a perfect test of the person’s knowledge about the package and the bank black horse finance.
Further, ask them to give you a few options. Do not just stick to one scheme or one bank or company. You must compare two to three packages among themselves to know the most economical one out of the entire lot.
You must also ask them for some help regarding the government grants. If the agent is experienced in the field, he or she would surely be able to guide you and save you some precious dollars in the long run black horse finance.