What is a Guarantor Loan?
A guarantor loan is a type of bad credit loan. With this type of loan you have someone be your 'guarantor' who secures the loan using their good financial history. A typically use for a guarantor loan is when a young person needs a loan, and so their parents agrees to be their guarantor. This allow the young person to get a loan, even though their credit history isn't that strong yet.
Who Can Be A Guarantor?
Typically a guarantor will be your parent/guardian. In some cases the lender will allow your guarantor to be another family member. Friends are rarely accepted as the lender wants to make sure the guarantor has a close relationship to the borrower. The guarantor must be at least 18 years of age, and a home owner.
Does The Loan Effect the Guarantor?
As long as the payments are made on time each month, there will be no effect on the guarantor. If repayments are not met, and all attempts to reach a solution with the borrow are not successful, then the guarantor will become involved and may be held accountable for the loan.
How Do I Apply For A Loan?
To sign up for a guarantor loan, you can do so right through our site. You and your guarantor will both need to fill out portions of our application, so make sure you are both ready. The application doesn't take long, and can be completed rather easily.
How Much Can I Borrow?
The amount you can borrow will depend on several factors, such as the guarantors financial history, their home's worth, and your financial history.
How Long Until I Receive My Loan?
In most cases, your loan will be paid out within 24 hours upon being approved for the loan. In some instances, for example a bank holiday, it may take slightly longer.
What Are Repayments Like?
To determine what your repayments will look like, you can use the loan calculator found on our site. You can input the amount you are borrowing, and how long you want the loan term to be. You will then be able to see how much you need to pay back each month.
Will My Payments Go Up?
No they will not. We use a fixed interest rate, so your payments will stay the same each month. There will be no surprises.
Can I Pay My Loan Back Early?
You can absolutely pay back your loan early. By making a payment larger than the minimum each month, you lower the amount you will end up owing by the end of the loan. There are no fees or penalties for paying back a loan early.
Will Taking Out A Loan Effect My Credit Score?
When you apply for a loan, we will perform what is called a “soft credit check”. We recommend not applying for another loan until you get a decision from us. In addition, if you make all of your payments on time each month, this will benefit you credit rating. On the other hand, failure to make your payments will result in a negative effect on your credit score.
How Can I Contact You If I Have More Questions?
If you have any more questions for Everyday Loans, you can reach us via our Contact Us page. We are always available to talk, and will assist you in any way that we can.