We have all found ourselves in the position of needing a quick answer at some point in our lives. This can be particularly important when it comes to finance.
If you find yourself in the position where you have found the perfect car but the seller will only hold it for 24 hours, jumping through the hoops and cutting through the red tape with your bank or building society can be both tedious and ultimately a waste of time.
Fortunately some innovative lenders have seized the opportunity to cut down the application process to make sure that once granted, the balance of the loan can be transferred the account of the applicant within a matter of minutes.
What Type of Loans Are These?
There are lots of loans which currently fall under the bracket of being an ‘instant loan’ but none of them offer a better deal currently than the guarantor loan.
Guarantor Loans are a variation of an unsecured loan. The difference being that the application is backed by an additional party who co-signs the agreement promising to repay the loan in the event that repayments are missed by the borrower.
It is the presence of the guarantor which allows the lender to overlook the creditworthiness of the borrower and makes this type of loan perfect for anyone with a bad credit rating.
How do they work?
There are very few steps which need to be followed in order to apply for a guarantor loans and the ones that are crucial, could not be much easier.
Just follow the steps detailed below for a quick and easy answer.
- Find a suitable guarantor
- Make an online enquiry/application for instant assessment
- Agree terms for loan with the lender
- Receive the balance of the loan into your account
- Make the required repayments
Once everything has been agreed, you will be free to spend the balance of your loan as you wish.
Is There Anything Else To Know?
Guarantor loans are as user friendly as any loan currently on the market but as when applying for any loan, it is of critical importance that the decision to submit the application is a fully informed one.
New responsible lending practices are now in place to ensure that people do not get placed in a position where they can borrow something which they cannot afford to pay back so it is vital that if you apply for a loan, you can afford to make the repayments.
Despite the speed in which the application process can be completed, guarantor loans are also ideal to fix long term financial issues as well and are often used for debt consolidation.
People often turn to a guarantor loan because:
- They have a bad credit rating
- They have previous CCJs (County Court Judgements)
- They have been recently refused credit
- They have no credit history
- They are looking to find a way to improve their credit rating
- They are looking for a cheaper option than some of the other instant loans such as payday loans
By following the information detailed above and doing a little homework of your own, you will quickly find that there is an option out there which cuts through the red tape and offers an affordable instant loan which does not compromise you in the future.
Bio – Amanda Gillam
I work as a blog writer for a finance company called Solution Loans which specialises in Guarantor Loans. I hold a degree in financial management and enjoy writing about a variety of topics including finance, transport, travel, sport and business.