If you are looking to borrow money, you may wonder whether a guarantor will be your only option. There are a lot of borrowing possibilities and many different loan types and lenders to pick between. It is really important to make sure that you make the right decision when it comes to borrowing money. This is because it can have a big impact on your experience of borrowing as well as the value for money that you get. Therefore, checking that you have picked the right loan is key. You may feel though, that guarantor loans might be your only option for a number of reasons. However, it is good to check all of your options first to make sure that this is true.
Because I have a Poor Credit Record
If you have a poor credit rating then your borrowing options will be limited. It could be the case that traditional lenders will not let you have any money and therefore you only have no credit loans to choose between. There are a few different no credit loans though and so it is good to find out more about the different types so that you can pick between them. It is really important to make sure that you are choosing the very best loan for you and therefore check all of the options and find out more about them first.
Because I Want to Borrow a Large Amount
If you want to borrow a larger amount of money then there are several loan options. However, with a poor credit record, it is likely that the guarantor loan will be the only one. This is because the lender will not trust you to borrow a large sum of money and make all of the repayments. Therefore, they want you to nominate a guarantor who will make those payments for you if you struggle to make them yourself. This helps them to be able to trust you and it helps you out if you struggle to repay.
Because I Need Help with Repaying
If you feel that you may have times when you will not be able to make your loan repayments then you may feel that having a guarantor will be a good thing to do. Then if there is not enough money available for your loan repayment then they will be asked for the money instead. This can give you peace of mind as you know that you will not always have to find the money to make the payment, that you will get some help with it. However, you do need to consider whether your guarantor will be happy with that. It might be that they are more than happy to help you out and they will be able to easily be able to afford it. However, they may not be that well off themselves and they might need the money for themselves and therefore they may not be happy with helping. It could be better to make sure that you take on a loan when you are more confident that you will be able to make the repayments so that you do not have to rely on a guarantor or can have one but be more confident that you will not be needing to use them very often, if at all.
It is good to make sure that you do look at all of your options and even if you have constraints think widely and make sure that you are considering every single option so that you get the best value for money from your loan. If a guarantor loan is your only option then make sure that you then compare lenders and make sure that you take the loan that works best for you. Do not just compare the cost though, look at the features as well to get an overall impression of it.