Guarantor loans are usually unsecured loans which last up to five years. The guarantor in this situation is the second person who is involved in this loan process. The guarantor can be a family member or a friend who agrees to pay your dues on your behalf if you are not able to repay your loans within time. Guarantor loans are much cheaper than payday loans, and it is a much simpler process because there are no admin or arrangements fees involved. To be eligible for a guarantor loan, you must be 18 years of age or above. You should also make certain that your guarantor must have a good credit score and proof of financial stability to provide for you when you are not able to do so yourself.
How Do You Know If You Are Eligible To Apply For A Guarantor Loan?
Anyone can apply for a guarantor loan as long as they are above the age of 18. Even unemployed people can apply for these loans. The only criteria required for this type of loan is that the person should have a working debit account. People who do not have good credit scores and have been denied loans by all other banks and institutions usually use these types of loans. However, when it comes to guarantor loans, they accept anyone as the lender is secured because they know that someone will cover their cost for them. Guarantor loans also help you better your credit score by showing that you can pay your loans on time.
What Are The Benefits Of Guarantor Loans For Unemployed People?
Guarantor loans help people stay financially secure even when they are not earning an income. It also keeps them safe in times of an emergency. Guarantor loans are quick and simple to get. There is no long and hard process required. You will just need a person you know to agree to become your guarantor. Guarantor loans are usually processed almost immediately which makes it convenient for people who are unemployed and do not have the money. Here are some of the [benefits you can avail from getting a guarantor loan]/http://www.articlesfactory.com/articles/finance/what-are-the-benefits-of-the-guarantor-loan.html.
- Guarantor Loans Are Easily Accessible: A guarantor loan was made for people who have to struggle when it comes to money. Being an unemployed person means that you are no longer getting a monthly income, which can really become quite burden when you have to pay your bills and dues. Even if you have a poor credit score, guarantor loans are still easily accessible to you. It is up to you to find someone who is above the age of 25 and has good credit score, to become your guarantor. This could be a family member or a close friend. The only way you can get a guarantor loan being unemployed is that you need to show proof that you will be able to make all your repayments later.
- Guarantor Loans Allow You to Borrow High Amounts of Cash: Guarantor loans are great for unemployed people because they can be used as safety nets form the lender. There are many times when you are unable to make your payments on time, but your guarantor can provide you with a large amount of cash and pay on your behalf. If your guarantor is a homeowner, you will be able to borrow a larger amount of money than if they are a tenant.
- Guarantor Loans Get Approved Quickly: Guarantor loans are extremely simple and quick to get approved. It is usually deposited into your account within less than 24 hours after you have applied for the application. If you have already sourced who your guarantor is, and you want an unsecured loan, you will find this to be the best solution for you.
- Guarantor Loans Are Longer Termed: Your repayment terms will be confirmed depending on how much you can borrow and how much you are able to repay over the months. These terms are usually quite flexible because many of these guarantor loans last as long as up to seven years, whereas other loans such as payday loans just have a 30-day deadline.
- Guarantor Loans Have Low Default Rates: Guarantor loans are much simpler and quicker to use than payday loans. Although the market for guarantor loans is still significantly lesser than markets for other loans, they are still very popularly used by people who are unemployed and in need of immediate cash.
How Can You Apply For Guarantor Loans?
Applying for guarantor loans is quite easy and does not take too long either. There are many lenders available online on different websites. All you have to do is compare prices and check the terms and conditions of the loan for each company. You can then visit their website and apply online. Most websites will let you apply through their website for free, ensuring the fact that your personal information will not be leaked out to other companies.
The funds are transferred to your account the same day as you send in your application. The money is usually sent directly to the guarantor so that if they want to reconsider walking out of this deal, they have the option to do so. If they agree to it, they will send the money to the borrower. The main transactions are then made by the guarantor themselves and not a third party, which helps in preventing fraud cases.
If you are someone who is unemployed and needs immediate cash to make your payments, you can apply for a guarantor loan through the Quiddi Compare website. Here you will be able to compare the prices ,and terms and conditions of various loan providers. You can then apply online by choosing the online lender that best suits your needs.