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How to pick the best loan guarantor

How to pick the best loan guarantor

Picking the best loan guarantor

Sometimes getting a loan with a good interest rate can seem a little out of reach, especially if you have bad credit, or no credit at all. However, there are plenty of options you can call upon if you’re in need of cash. You could search for bad credit loans, or you could look into a guarantor loan instead.

Whereas with a payday loan the criteria is that you’re employed, the criteria for a guarantor loan is that you have someone to back you. This makes them a great option for great option for those with a bad credit score.

What is a guarantor?

Whoever you choose to back you is called a guarantor. They promise that they will make any repayments that you’re unable to. By making this agreement, lenders will see it as less of a risk and may provide you with better interest rates.

Who should I pick as my guarantor?

First and foremost, it’s important that you choose someone with mutual trust. This could be a family member or friend. It’s not always the easiest conversation to have, but once you’ve made it clear what it involves, you can leave it up to them to make the decision.

The guarantor doesn’t need to have a perfect credit score to back you. They just need to prove that they will be able to pay your repayments if called upon. Another thing to note is that they can’t have any financial ties with you. For example, if you share a car loan, they won’t be suitable.

What if I can’t get a guarantor?

There are other options to consider if you can’t find yourself a suitable guarantor such as payday loans or bad credit loans. Loan Bird is more than willing to help explore your options with you.

So, whether you’re interested in guarantor loans, payday loans or another financial service, get in touch with Loan Bird using our online form. It really couldn’t be easier!