5 FAQs About Guarantor Loans
4A0-103 So most people have heard of a Guarantor Loan but not many people are actually familiar with the workings of one or even what exactly it is. This can be a hard thing to overcome if you aren't sure what they are then how can you know if you want to try to get one? Here are some of the most commonly asked questions.
How does a guarantor loan work? Guarantor Loans are similar to unsecured loans in that the borrower does not need to be a homeowner as no collateral is required. The borrower is required to get another individual to act as guarantor for them, this is usually due to having no previous credit history or having a poor credit history (missed payments or CCJ's). The guarantor guarantees to repay the loan in an event the borrower is unable to meet the monthly repayments.
4A0-104 Who is eligible to be a guarantor?Most of the time people will use a close friend or a family member to be a guarantor. You must not hold any other credit items with this person including credit cards or bank accounts. And they must have good credit even thought you don't have to. They must also be a homeowner.
4A0-105 What does the guarantor do?The guarantor's job is pretty much too simply supply a credit score that can be used to get a Guarantor Loan
How quickly can I get the money?On receipt of the signed documents, identification and pay slips the lender will process the application, and then release the funds. This usually takes less than seven business days.
Usually once a decision has been made on the loan then the lender will enter all the documentation that was needed and then the money will be processed, then a loan cheque sent to you. This usually takes less than seven business days.
Is any prepayment needed?There are no fees like that associated with these kinds of loans.
How does a guarantor loan work? Guarantor Loans are similar to unsecured loans in that the borrower does not need to be a homeowner as no collateral is required. The borrower is required to get another individual to act as guarantor for them, this is usually due to having no previous credit history or having a poor credit history (missed payments or CCJ's). The guarantor guarantees to repay the loan in an event the borrower is unable to meet the monthly repayments.
4A0-104 Who is eligible to be a guarantor?Most of the time people will use a close friend or a family member to be a guarantor. You must not hold any other credit items with this person including credit cards or bank accounts. And they must have good credit even thought you don't have to. They must also be a homeowner.
4A0-105 What does the guarantor do?The guarantor's job is pretty much too simply supply a credit score that can be used to get a Guarantor Loan
How quickly can I get the money?On receipt of the signed documents, identification and pay slips the lender will process the application, and then release the funds. This usually takes less than seven business days.
Usually once a decision has been made on the loan then the lender will enter all the documentation that was needed and then the money will be processed, then a loan cheque sent to you. This usually takes less than seven business days.
Is any prepayment needed?There are no fees like that associated with these kinds of loans.
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