Bad credit shouldn’t stop guarantor loans. Thanks to some loan providers who are ready to give loans to clients with very bad credit.
They look beyond your bad credit, which they believe must have been caused by unavoidable financial circumstances, and through your guarantor, you can access loans.
Nevertheless, there are also loan providers who will not neglect your bad credit score even with the guaranteed person and refuse your loan application.
WHAT ABOUT GUARANTORS WITH POOR CREDIT?
Unfortunately, if you have a guarantor with poor credit, getting a loan might prove to be difficult. A guarantor with a good credit score is preferred, and you can own a property as long as you can pay for it without worrying about ownership.
TIPS TO CHOOSING A GUARANTOR
- Your guarantor must not exceed 80 and must be more than 21 years of age at the end of your loan term.
- He/she should be a homeowner with more than one source of income and different account details.
- Your guarantor must have a good, verified credit record and must not be your spouse.
- In case you default, your guarantor must by choice agree to pay for the loan.
HOW TO GET A GUARANTOR LOAN?
Loan providers can be accessed directly or through authorized loan brokers because they are rich with market information and know the right lender to solve your problem.
After choosing a loan provider, your guarantor must co-sign with you when filling out the loan application form. This means that he/she affirms to be held responsible if you fail to pay.