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Guarantor Loans – A Solution to Financial Problems

Budgeting and managing finances can be an issue for some people, day-to-day living costs may not be a problem but reacting to unexpected changes and situations often causes disruption. Unexpected changes or expenses may be in the form of damaged cars or household appliances, increases in utility bills or veterinary costs.
By implementing a good financial plan you will account for any unexpected expenses meaning that there is always enough cash to cover these situations. Even with a good financial management plan some situations are unavoidable.
Finding solutions to these problems can be tough and often having poor credit history means that many lenders will turn you down. Guarantor loans have a flexible criteria meaning that the applicant can have poor credit and will still have a good chance of being approved providing they have a good guarantor to support their application.
A guarantor must be a homeowner and be receiving regular income; they must have good credit history, they will be required to provide proof of income and proof of ID. As long as it is evident they can afford the monthly repayments if the applicant fails to do so; they have a good chance of being approved as a guarantor.
The applicant must also provide proof of ID and income. One of the many myths of guarantor loans is that the guarantor always pays the monthly repayments meaning that the borrower doesn’t need to prove that they can afford the monthly repayments. This is not the case; the guarantor only steps in if the borrower misses a payment.
Almost all specialist guarantor loan lenders will have a website with an online application form, this is not only quicker than the traditional paper-based method but it also greatly reduces the amount of paperwork involved.
There is also a number of unsecured loan comparison websites that offer quotes based on the information entered, this way you are able to find the cheapest and most suitable loan for you.
Another reason guarantor loans are ideal for those in financial trouble is the speed of approval, most lenders will pride themselves on a 48 hour turnaround time, meaning the money can be in your account just two days after application. The speed of approval is heavily dependent on the applicant and guarantor themselves, if they fail to provide the necessary documents such as proof of ID and proof of income this will slow down the process.
All in all, guarantor loans can be a good solution to financial trouble, however in order to maintain a healthy financial situation good planning and money management is required.…