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Guarantor Loans: An Effective Borrowing Solution for People with Bad Credit

The fact is that there are limited borrowing options for those with bad credit, but a guarantor loan can provide an excellent alternative. These loans have risen in popularity in the UK over the last ten years or so because of all the benefits they offer. If you have found it difficult to get a traditional personal loan because of your credit, this is one option you should learn more about. A guarantor loan could be the solution you need for getting money without all the red tape and frustration.

What is a Guarantor Loan?

The first thing you will need to learn is what exactly a guarantor loan is. This type of loan is designed to help those with bad credit. You will need another person to act as the guarantor, which is someone who agrees to take on payments if the borrower can no longer do so. There are certain standards for both the borrower and guarantor that need to be met before approval can be given. The requirements for the guarantor are going to be far stricter than for the borrower though.

Who can be a Guarantor?

There will be certain requirements that need to be met for a person to act as a guarantor. This person must have at least a fairly good credit rating as well as adequate income. The lender needs to know that the guarantor will actually be able to pay back the loan if you can’t. It can be somewhat challenging to find the right person to act as the guarantor for this type of loan because of the stringent requirements.

Borrowing Amounts

One of the great things about guarantor loans is that you can borrow a fairly high amount of money. The maximum amount that you are allowed to borrow will depend on a few things, including your income as well as the guarantor’s income and credit rating. Guarantor loans typically have a higher borrowing amount than most others.

What Happens if You Default on the Loan?

If you can no longer make the minimum monthly payments on the loan you take out, the lender is going to turn to the guarantor to pay off the remaining balance on your account. If the guarantor is unable to pay, your current and the guarantor’s will both be negatively impacted as a result. It is important that you only take out one of these loans if you are absolutely sure that you’ll be able to pay it back by the due date.

Guarantor Loan Lenders

There are numerous private lenders that give out guarantor loans, making it essential for you to do some research before making a decision on one of them. The lender you choose will decide what your interest rate is going to be like among other things, so you don’t want to choose just anyone. The more research you do into your guarantor loan lender options, the easier it will be to get a reasonable deal. Make sure that the lender you choose is 100% legitimate so that you don’t get up getting scammed or ripped off at all.

Main Benefits of getting a Guarantor Loan

You will quickly discover that there are a lot of benefits associated with guarantor loans, including:

  • Longer terms: Guarantor loans typically have longer terms than other types of loans, which means that you will have longer to pay off the money you owe. The length of the term will be decided by how much you borrow.
  • Low borrowing standards: The standards for getting a loan are fairly low for the primary borrower. You don’t have to have good credit to get approved for one of these loans, but the person who acts as the guarantor does.
  • Flexibility: These loans are also very flexible, so you can spend the money you get on whatever you want. It is incredibly rare for these lenders to ask applicants what they plan on spending the money on. Most personal loans can only be used for specific things, so you will want to keep this in mind as well.
  • Solution for emergency situation: If you are in an emergency financial situation and need money fast for some crucial expense, a guarantor loan can be quite useful. If your car needs to be repaired or you have home repairs that need to be done, this type of loan can help.
  • Increase your credit score: If you manage to pay off your guarantor loan in full and on time, your credit score will improve dramatically. A solid credit score is essential for many reasons these days, especially for those who want to buy a house at some point.

Applying for a Guarantor Loan

You can apply for a guarantor loan online, and it’s important that you are prepared for all of the information you will need to submit. While these loans do not typically take very long to complete, you will be required to submit personal and financial details. The lender will want proof of your income to make sure that you make enough to pay off the loan on time. The person who is acting as your guarantor will also need to submit this same kind of information.

Is a Guarantor Loan Right for You?

Guarantor loans have helped countless people in the UK, but they aren’t right for everyone. You should carefully evaluate your own financial situation before deciding whether or not to apply for one of these loans. You shouldn’t take out a loan unless you absolutely need one. It’s also a good idea to compare loans online and get quotes so that you can get the best deal on yours. You will have to find someone to act as your guarantor as well. Don’t choose just anyone to be your guarantor, as you’ll need to trust that they will take over payments if you are unable to at any point in time.

Are Cash Advance Loans a Good Borrowing Option for You?

Cash advance loans have skyrocketed in popularity over the years in the UK, and it’s no surprise when you consider all of the benefits they offer. When you need money as quickly as possible, you will find that these loans are really the best way to go. There are a lot of things that you need to be aware of when looking into cash advance loans so you can make the right decision.

What is a Cash Advance Loan?

A cash advance or payday loan is meant to help those who need money quickly. The terms for these loans are fairly short, usually about 2 weeks. You will be able to use the next pay check you get from your employer to cover the amount of the loan. One of the reasons that so many people favour these loans is because they are so easy to get and offer quick cash.

Cash Advance Lenders

Only private lenders give out cash advance loans, and there are many of them for you to choose from. It is important to select a lender such as Emu.co.uk that you are confident you can trust. While most of these lenders are reputable and legitimate, you will still want to do your homework. Take the time to learn as much as you can about some of these lenders so that you can choose one that will provide you with a good overall deal on the loan you need. Keep in mind that the lender you choose will decide what your interest rate is as well as all other terms of the loan.

What are the Benefits of taking out a Cash Advance Loan?

There are tons of reasons why you will want to at least think about taking a cash advance loan, including:

  • No delay on your funds: Taking out a loan through a bank can take days or even weeks before you get your money, but cash advance loans are much faster. You can get the money you need within hours if you are approved for one of these loans.
  • Your credit doesn’t matter: These days a majority of private cash advance loan lenders aren’t very concerned the credit of applicants. Many people who have been turned down for loans by their banks are moving towards this option. The overall standards for getting a cash advance loan are much lower than any other kind.
  • Quick and Convenient: Getting a loan has never been so convenient as with cash advance loans. All you have to do is go online, fill out an application, and wait to hear back from the lender.

Applying for your Cash Advance Loan

Applying for a cash advance loan only takes several minutes, and you can do it online. You will find that these lenders all have sections on their websites with a form that you can fill out to apply for the loan you need. It won’t take long before your application has been processed and you hear back. The lender will most likely notify you of your approval or rejection by giving you a call or sending an email. Make sure that you submit only accurate information in your application so everything goes smoothly.

Qualifying for a Cash Advance Loan

It is extremely easy to qualify for a cash advance loan, especially compared to the personal loans that banks and credit unions give out. As long as you are a legal UK citizen, over 18 years of age and have adequate income, you should be able to get approved. You will also need to have an active checking account at a bank. A majority of people who apply for these loans end up getting approved, so your chances are fairly good. Make sure that you meet all of the required criteria before filling out an application online.

What Happens if You Cannot Pay Back the Loan?

The last thing you want is to not pay back the cash advance loan you take out, but sometimes circumstances change for the worst. If you suspect that you won’t be able to pay the loan back on time, the best thing you can do is to give the lender advance notice. Your lender will more than likely be able to work with you and provide you with an extension.

Not all of these lenders are so lenient, so there is a chance that you’ll get denied. If you do not pay back the loan, your credit is going to take a serious hit. Try to set up a repayment plan with the lender before giving up on this debt entirely.

Interest on the Loan

You will be required to pay interest on top of the principal amount that you borrow. Your interest rate is going to depend on the lender you choose, so you will need to remember that before applying. The better your credit is, the lower your rate is likely to be. While it’s true that cash advance loans are known for their high rates, there are certain things you can do to get a good deal. Take all the time you need to compare loans online and get quotes so that you don’t end up with a higher than necessary interest rate. This research can save you a lot of money, so you will need to set aside some time to do it.

Are Cash Advance Loans Legitimate?

The fact is that cash advance loans are entirely legitimate and can be of great help if you find yourself struggling financially. Millions of people benefit from these loans each year, but you will need to think about whether or not you really need one. It’s always a good idea to review your finances prior to filling out a single application for one of these loans. You certainly don’t want to take out a short-term loan like this unless you are absolutely certain you can afford to do so. Cash advance loans offer many benefits, but they are not for everyone.

Payday Loan Scams You Should Avoid

There are a lot of different scams that you should be aware of when looking for a payday loan, because there are quite a few of them. Each year hundreds of people fall victim to these scams, and they lose a significant amount of money as a result. Payday loans can be incredibly helpful if you find yourself in a financial bind, but you must be able to tell the difference between legitimate opportunities and the scammers. This information will help you recognize when someone is just out to take advantage of you to get your money.

Fake Lenders

While a vast majority of payday lenders are completely legitimate and trustworthy, there are some scam artists out there that you’ll need to watch out for. These fake lenders present themselves as being legitimate, but there are some telltale signs that you can remember to save yourself a lot of trouble.

When you search for payday lenders with Google, you will want to avoid clicking any links that say “ad” in small print. Most of the so-called payday loan companies that put these links up on Google and other search engines are fake and should be avoided altogether. You never want to click on any of these ads, because they will only lead to trouble.

You should also avoid any payday lenders with unsecure websites. If a company’s website doesn’t have the “https” before the URL, you should avoid it altogether. An “http” URL means that it is not secure and therefore not safe to use. The last thing you want is for the information you submit to be used to steal your identity or some other malicious purpose.

Google has been trying to reduce the number of these fake lenders by imposing certain regulations and requirements, but they are still out there. You will definitely need to keep this in mind so that you don’t end up getting taken advantage of.

Advanced Fee Scam

One of the more common payday loan scams that you need to be aware of is “lenders” that ask for an upfront fee of some kind. No legitimate payday lender will ever ask you to pay anything until the due date of your loan. There have been quite a few people who have fallen for this scam over the years, so you will need to keep it in mind.

This scam typically begins with filling out an application online. At first it may seem completely legitimate, but eventually you will be asked to pay something to the lender before you can get your loan. After you have filled out and submitted the application, you will receive a phone call from someone who claims to be a representative of the lending company.

The person on the other end of the line will want to verify the information that you have submitted via the application. This is when they will ask you to pay an advanced fee, and they can be quite persuasive in many cases. They will take the money from you and never give you the loan. Western Union knows about this particular scam, and you should too. You will never want to give any lender an upfront fee of any kind.

Phishing Scams

There are quite a few “phishing” scams that exist within the realm of payday loans. This is perhaps the most clever and potentially damaging scam, so you will need to know all about it. Many people have had their whole life savings drained from their bank accounts because they fell for this scam.

The ultimate goal of a phishing scam is to get sensitive and valuable information from you. This information usually consists of your bank account, credit card number, and other details that can be used to get money from you in some way. You should only ever submit your personal information to lenders that you are absolutely sure are legitimate, because otherwise you’re putting yourself at great risk. Make sure that you take a close look at your credit report every so often so you can make sure that you haven’t been taken advantage of by some scammer without your knowledge.

Protecting Yourself Against Payday Loan Scams

It is also very important that you know how to effectively protect yourself against payday loan scams. There are a number of tips that can help you to avoid becoming the victim of an unscrupulous scam artist, and it’s crucial that you know what some of them are.

  • Make sure the company is licensed: You will always want to confirm that the private lender you are interested in borrowing from has a valid license. It’s important that you stay away from all unlicensed lenders, as they are not legitimate.
  • Look out for Hidden Fees: There are unfortunately quite a few private payday lenders that charge hidden fees, and doing so is a definite sign that they aren’t for real. You never want to borrow from a lender that charges you for things that weren’t explicitly laid out in the contract you signed with them.
  • Asking for money in advance: Any supposed lender who asks for any amount of money in advance is only interested in taking your money and running.
  • Low BBB rating: If you come across a payday loan company with a very low Better Business Bureau rating, you will want to avoid them altogether.

Final Thoughts

With all of the different payday loan scams that exist today, it is crucial that you do your homework so you will be able to recognize them instantly. Many people have lost hundreds and even thousands of dollars as a result of these scams, so you will want to learn all you can about them. When you have this information, you won’t have to worry about becoming a victim of a clever scam artist. There are plenty of legitimate lenders out there, but you will still need to know about the ones that want to take advantage of you.