Benefits and steps to get Guarantor loans
Guarantor loans are special type of unsecured loan which help the borrowers get loans inspite of their excessively poor credit score. That’s when a guarantor comes into role as your saviour. A guarantor is a person who can stand by you, as a co-signer who guarantees your loan repayment in case you are unable to pay it on time.
A guarantor plays an excessively serious role in getting your loan approved. They are like vouchers of the applicant because they can boost his/her bad score by their own good score by consistently making monthly payments on the loan.
Benefits of Guarantor loans
- Credit search is not a crucial or a critical factor in getting the loan approved.
- Boosting your score is one of the best benefits here. All you need to do is get a good credit score guarantor for monthly repayment and your bad credit score will decrease.
- You can borrow a large amount with the help of Guarantor loans. Since, your credit score is very low, getting a guarantor can help you borrow a huge amount by their own good credit score.
Steps to get a Guarantor loan
You are not only entering your details but also the guarantor’s details in form. This includes their contact details and their credit ratings. Depending on that and the employment of your guarantor, this becomes a huge deal whether your loan up to 7500euro is approved or not. These are basic steps included:
- Enter your details:
You need to fill the form which includes the amount you wish to borrow, name, email address, mobile number, login and password. Some lenders may ask you the purpose of your loan which helps them understand the genuine reason for your loan.
- Receive either a call or email documents
Guarantor then receives a phone call or email documents where they sign it electronically and send via sms. They will be enquired with the details they desire to get. This helps the lender be sure about any doubts that they might have.
The guarantor however, takes a very big risk in signing the contract because if the applicant cannot repay the loan on time, they have to cover the cost of repayment.
- Choosing a good guarantor and entering their details
When you choose a guarantor, make sure that he/she is a homeowner, has a good income and good credit score. These factors are likely to get your application get approved because if your guarantor is a homeowner, they are less likely to skip the town and also it’s an add-on to mortgage.
- Cross check of agreement
The lender calls up both the guarantor and the borrower to ensure if they both agree to all terms and conditions. This is also made clear that the guarantor is needs to pay the amount if skipped by the applicant anyhow.
- Debit card details
You are required to put debit card details since companies providing guarantor loans do not accept credit cards.
- Funds send to the guarantor.
Funds are finally sent to the guarantor’s debit account consolidating so that borrower does not use a fake account to give themselves a loan.
Night Sky Loans can help you out with Guarantor loans if you require. Communicate with us and we will solve your problem.