What is a Guarantor Loan?


At My Car Credit we understand
that affording a car can be a challenge. A Guarantor Loan, where a third party agrees to pay your loan if you can’t
make repayments, can be a great alternative. A Guarantor Loan is a big responsibility so it’s important that you understand
everything that’s involved in taking one out. A Guarantor Loan is the same as a normal loan in that you are still responsible
for making the agreed repayments. The difference is that a trusted third party,
usually a close friend or family member agrees to guarantee the repayments
if you fail to make them. Your guarantor needs to have a regular income
and be aged between 18 and 75. They don’t need to be a homeowner,
but this will help your chances of acceptance. They will go through the same checks and processes as
you to ensure that they are a suitable choice. Once you and your guarantor have been accepted
and all paperwork completed, most Guarantor Loans are paid within 48 hours. A Guarantor Loan can improve
your chances of acceptance and you may be offered a lower APR
than you could obtain elsewhere. This is because having a Guarantor Loan
makes you a safer bet for a lender. A Guarantor Loan is also a great opportunity
to improve your own credit score, so long as you make all of the monthly repayments. Be aware that if you fail to keep up repayments, your Guarantor will be liable
for the monthly repayments instead. If they fail to make the repayments,
both of you risk being issued with CCJ. This could affect how easily both of you
can obtain credit in the future. A Guarantor Loan can be a good solution
for certain circumstances but it’s important to remember your obligations
to both your Guarantor and the lender. If you feel that a Guarantor Loan
is the best option for you, why not call one of our
Guarantor Loan specialists at My Car Credit – they will be more than happy to help you
through the quick and easy process. Why not start your car buying journey now
by applying online an mycarcredit.co.uk?

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