Guarantor loans are efficient in the manner that they require no credit check and so it should be quite easy to quickly be accepted and paid the full loan amount right? Well, the big obstacle that I tend to hear about is in finding a guarantor that is willing to back you. It is certainly a big ask that might make you feel a little uncomfortable, but I don’t think that it has to be at all. On this occasion, you are not judged by a computer, but are actually judged on the merits of you as a person by someone who knows you well. Usually when a credit check is made, you will have to complete an application that supports your personal circumstances. I believe that a similar process should be directed towards your potential guarantor, whereby you can get the point across that you are in a good position to receive this loan.

What you should not do is ask someone upfront without providing any vital information on the unsecured loan in question. Take some time to jot down how much money you would like to borrow, how much you would like to spread the payments over, what is the purpose of the loan and a basic financial plot that shows how much money is coming in and how much money is going out. If you can show here that you have thought about this a great deal and that you are serious about being a responsible borrower then there should be no reason why a family member in particular should not back your application. You may have been useless with money in the past, but this could well be your first positive step towards a brighter financial future.

No credit check debt consolidation is something that springs to find when I think of a guarantor loan. Let’s say you have not acted responsibly in the past and now have a number of debt collectors, letters through the post and other such uncomforting things that bring on a great deal of stress. Your guarantor loan could clear all of these urgent debts and provide you with one small manageable payment that can be spread over a number of years; guarantor lenders tend to offer instalments across 60 months. Rather than apply to a number of poor credit loan lenders that will offer high interest rates and credit check you… you should find that guarantor loan companies will offer fair interest rates and you can be paid out very quickly for the amount that you desire.

My point here is that guarantor loans are really efficient solutions to those that have bad credit and need a loan. Of course, it all comes down to that major obstacle of finding that guarantor. So who can we ask to stand in as a guarantor? Well, it could be a family member, a close friend, a neighbour or even a work colleague. The important thing here is that you must feel comfortable with the person that may back you. If this person is someone who knows that you are desperate for a loan and may be going through stress with the mounting debts – then surely they should offer to stand in and support you if they know you well and care for you. If you are still struggling to find a guarantor then the options would either be to find a stranger to stand in as your guarantor or you should simply look to alternative financial solutions.

In regards to finding a stranger and perhaps offering them some kind of fee to stand in for you, I just don’t think that this work would out well! The guarantor loan lender has to be responsible since they are in compliance with the FSA, the Office of Fair Trading and so on. The loan amount will usually be deposited to the guarantors account and then this should be passed on to the applicant. Could you trust a stranger to make the initial payment to them? On the flip side, the applicant could default the payments and the guarantor would be left to take the full responsibility. I think it’s best to summarise that you should only approach the guarantor loan solution if you can find a guarantor to back you. In regards to other subprime solutions for those bearing a poor credit profile, this blog will be providing further articles on all of the possible options available to you – everything that needs to be covered will be covered fully over the coming months so stay tuned.

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