Guarantor loans make it easier to borrow money, no matter what your credit history. Whether you’re looking to finance a renovation, a new car or the holiday you’ve always wanted you can achieve your dreams with guarantor finance. Applying for guarantor loans is a simple and straightforward process – if you want to know how to make your dreams a reality, looking for a guarantor loan is a great place to start.
Guarantor loans – how do they work?
If you’ve struggled to obtain finance, whether that’s a car loan or a house renovation loan, you may have given up on being able to achieve your dreams. However, a guarantor loan could make this possible if you have someone who is willing to support your application. When you apply for guarantor loans the application is the same as for any other type of finance. The only difference is that you provide the name of a guarantor who will take over the loan if you’re not able to make repayments.
Guarantor loans make life easier for lenders, as they provide reassurance that the amount borrowed will be repaid – if you don’t make the repayments then your guarantor has agreed to make them for you. They are also a great option for finance, such as wedding loans or holiday loans, if your credit score isn’t ideal. All you need to do is find a friend or family member who is willing to support your application and ensure they are happy to take the responsibility on. Your guarantor will need to be:
- At least 18 years old
- Able to fulfil the conditions set by the lender (e.g. a homeowner)
- Someone who has a good credit score themselves
How can you use guarantor loans to achieve your dreams?
- A house improvement loan. If you don’t have the cash up front to pay for improvements to your home and you’d prefer to pay this off over time, guarantor loans are a great solution. Whether you want a loan for a house extension or you’d like to redesign the kitchen or the interior aesthetic, you can use the money from a guarantor loan to make your dream home a reality. Even with a credit history that is less than perfect, guarantor loans provide you with options when it comes to improving or upgrading your home.
- Holiday loans for bad credit. Travel is something that many people dream of and the annual holiday can be a moment that we look forward to all year. If you’re currently strapped for cash then you may feel like it’s not possible to have a holiday this year – or that the locations you really want to visit are completely out of reach. Holiday loans are possible when you have a guarantor. You can use the money from guarantor loans to plan your dream trip, whether that is a winter holiday in the mountains or exploring beaches and jungles in exotic places.
- Wedding loans. Getting married can be incredibly expensive and many people now borrow to ensure that the biggest day of your life is as memorable as it can possibly be. Perhaps you can’t afford the perfect outfit, or the reception venue that most appeals is out of your budget. Wedding loans for UK brides and grooms are an easy way make your dream day happen, whether that’s hiring the vintage Rolls Royce or ensuring that none of your guests go thirsty when it comes to essentials, such as wine and beer.
- Buying a car. Having your own transport can be crucial for working life today and ensuring that you’re able to maintain a lifestyle for yourself and your family. Some car financing options are expensive and have a lot of hidden extra costs that may make them a bad deal. If you have a guarantor then you can use a guarantor loan as a car loan and opt for the make and model of your dreams. You may even find that it’s actually cheaper to use guarantor loans than straightforward car financing.
- Bad credit card loans. If you have a lot of credit card debt, refinancing with guarantor loans can also help you to turn your situation around. Where guarantor loans offer a cheaper interest rate than your credit cards, or the option to pay less each month to make your budgeting more manageable, this can be a swift route to better managing your finances to help you achieve your dreams.
Guarantor loans offer lots of options if you have life goals and specific dreams that you’re looking to make happen in 2020. From weddings and holidays through to cars and debt consolidation you can use the money for whatever you need. And even if your credit score isn’t perfect you can still access the finance that will help to make those dreams a reality.