A lot of people have been asking what a guarantor loan is. A guarantor loan is available in the United Kingdom, which makes people who have had a bad credit history, to be able to get a loan again through the help of a guarantor. This which is what you call a guarantor loan is really helpful especially when you really need to get a loan again but companies reject you because of your poor credit performance in the past years. The most important aspect that you need in order to be able to be apply for a guarantor loan would be of course, a guarantor. Without a guarantor, you cannot be considered for a guarantor loan.
For a guarantor to be qualified, you need to be able to have the criteria in which you need to follow. In several companies, the standard may vary but mostly, they require the guarantor to be over 21 years of age, is receiving an income, and also, with a good credit history. Some qualifications resemble that of an ordinary loan application. When this first phase of the guarantor check has been able to be done, then there are other following steps to proceed to be able to check your guarantor. Also, take note that in some companies, they may be using computerized that are scoring systems to be able to credit check your eligible guarantor.
When they pass this, the company will also need to secure some verification checks through asking a number of questions to the guarantor, and that to check that they are amenable to this guarantor loan. The company should be able to verify that the guarantor is willing and that the guarantor will help in this loan application. Also, the company or the lender will also need check whether the guarantor and you, the applicant, can be able to afford the loan that you are trying to get. In this case, you need to be able to do better than your previous bad credit applications.
When in case you, the borrower, would be unable to do the repayment of the loans, no need to worry for the guarantor because they will not be immediately bugged down by the company or the lender. The company or lender will give you time to make up for the necessary actions that you need to do in repayment but in case you fail to do so, the lender will already contact your guarantor in behalf of you and should be able to do and help you with your payments. If in case both the borrower and the guarantor are unable to pay for the needed repayments, then this will be a bad experience as well because there will be measures that will be done to you and your guarantor. On the other hand if you are complying with your repayments then it would have a positive effect in your previously bad credit history and it will continue to give you a good credit now.