People take out loans all the time, and this could be for a number of different reasons. Some people however will find it very difficult to take out a loan if they have a bad credit history or no credit history at all, and this could result in you having to pay an incredibly high rate of interest and you could find yourself in serious financial issues. This of course is a very slippery slope, but thankfully there is a type of loan available which is ideal for those with a bad or no credit history. This type of loan is called a guarantor loan, and it works by a second person making the repayments if you are unable to, and this means that the loan is unsecured and not attached to a property.
A guarantor loan is a great solution for those who have previously struggled to obtain a loan, and this is because they have a lower interest rate and there are no upfront arrangement fees. These types of loans are also ideal for non home owners too as you do not have to own a property because instead you will have your second person to rely on making the payments if you can’t. Another great advantage of taking out one of these loans is that it will allow you to build up a good credit history as long as you can make the repayments on time.
If you have found a friend or family member who is happy to be your guarantor then you are a big step closer to getting that loan that you need. As long as you and your guarantor are both in full time employment then you can apply online at www.1ststop.co.uk where you can apply for loans between £500 and £5,000 with terms from 12 to 60 months. Each month you will make your repayments, and if for some reason you are unable to then your guarantor will step in to make these payments until you are able to resume.
Your guarantor can be anyone that you like but they cannot be financially linked to you and they will also need to have a good credit history and be a UK homeowner. Once you have found a friend, family member or colleague who is willing to be your guarantor you can begin the application process and before long you will have your loan approved.