Guarantor loans are a popular way of borrowing, as they are often the only way some individuals can be approved. For example, if a person is struggling to gain approval due to poor credit history, providing a guarantor could mean the loan is accepted.
A guarantor will reduce the risk to the lender, as they co-sign the finance agreement and become jointly responsible for the loan repayments. The guarantor provides a ‘guarantee’ that they will make loan repayments if the original borrower fails to make their payments. Due to the financial risks involved, it is important that both parties trust each other and understand the terms and conditions.
In many cases, individuals choose parents, spouses, relatives and close friends to act as guarantors. This is because anyone you choose as a guarantor will be liable for the loan if you are unable to keep up with repayments. So, who you choose to be a guarantor must be someone you can trust and who trusts you. Although, there are some criteria which they must meet.
For example, they will need to show that they have a regular income, financial stability and good credit history. The person must also ensure that they have read and understood the terms and conditions before agreeing to co-sign for the finance agreement.
As a broker, we can offer a variety of guarantor and no guarantor loans through our panel of lenders. Amounts range from £100 to £5000, with repayment terms of 3 months up to 36 months. Before applying for a loan, it is important to think about the financial implications. Organisations such as Step Change and The Money Advice Service will be able to offer advice.
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You are age 18 and a UK resident
You have a regular income
You have a valid UK bank account with an active debt card
Why choose us
Sometimes, the unexpected happens that means you need money fast. Here at Cashflex we offer a user friendly process to help you find same day loans in a responsible and affordable way.
The exact amount you can borrow depends on your personal circumstances and can differ by lender. You can apply for a loan between £100 and £5,000
This is dependent on the amount that you wish to borrow. The repayment terms can be: 3 months, 6 months and 12 months to name a few, ranging right up to 36 months.
Yes. If you are unsure you can use our FastCheck tool to find out your loan eligibility.