Guarantor Loans – The Top 5 Myths about Guarantor Loans

There are now more people looking towards same day guarantor loans simply because it’s the only course of action available to them. You wouldn’t think getting a loan would be possible when you have bad credit but it can be when you have a guarantor. Guarantor loans are truly popular today and there are many lenders who are offering such things. However, there is a lot of confusion around them and whether or not the loans are going to be suitable to use. Read on to find five simple myths of guarantor loans.

Everything Goes On the Guarantors Credit Report

Since the guarantor isn’t the one actually taking the loan out, none of the loan application or information goes on their credit report. The borrower who is actually applying for the loan is the one who has the information put on their credit. However, if the borrower does fail to make payments and the company comes after you, that is when the information will appear on your credit. If the borrower does make all payments, however, none of this will ever be found on your credit. Guarantor loans don’t usually appear on credit unless the borrower has failed to pay.

Guarantors Must Provide Their Banking Information

There is a big misconception that if you are to go as guarantor for someone it means you’re the one who must hand over your personal details such as your banking info. However, while one or two select lenders might ask for this, most will not. You shouldn’t really be asked for any information such as your banking info but you may be asked about your employment history and your income. This is to ensure you are eligible for the loan. Same day guarantor loans are ideal for most people and they can really help in many ways.

The Loan Amount Is Very Small

Most people also believe that with a guarantor loan, it means they will be allowed only a small amount of money. Guarantor loans can vary considerably but usually you can get a fair amount of money as long as you’re eligible for the loan amount. For instance, if you required say a $1000, as long as you had the means to pay you would be eligible. Of course, if you ask for tens of thousands of dollars, it might not be given.

Personal Property Will Be Secured Against the Loans

Going guarantor on a loan doesn’t actually require you to put up any collateral whatsoever. It doesn’t matter if you are guarantor or otherwise, you really don’t have to put any collateral. It’s important to know this and, in truth, you shouldn’t really have to put any up possessions as collateral unless you are choosing a secured loan. Same day guarantor loans can be usually unsecured so it can be a nice option to consider. 

There Will Be Higher Interest Rates 

With bad credit, it usually means loans come with higher interest and that can be true even with a guarantor, however, you can still get a fair interest rate. A lot of people believe interest will be set at 100% but that isn’t the case; it can be high but not so bad that it’s impossible to afford. You just have to look for the very best guarantor loans in order to get good interest. When you do your homework you shouldn’t have too much trouble.

Finding the Best Loans

Going a guarantor for someone can be wonderful and really it can be a lot of help too. However, this can be the best way for you to get a loan and repair your credit. Having a guarantor will be the ideal solution for most people and it’s not too hard either. You really can find choosing same day guarantor loans are ideal for you today.

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