Tenant guarantor loan is a way of secured lending with the help of another person. This other person is called a guarantor. Traditional lending required that a guarantor should be a homeowner. However, with the rise of dynamic and new products, even non-homeowners can be guarantors. In fact tenant guarantor loans are popularly known as non-homeowners guarantor loans. This means that you can still qualify for a guarantor loan even if the person you chose is not a homeowner but a tenant. Like any other lending system, you will need to make an application and meet the lending company’s requirements first. Ensure you carry out thorough research and compare as many sites as possible if you want to land yourself a great deal.
Just like any other form of lending, you and your guarantor will need to fit the providers affordability criteria. Remember, requirements may vary from lender to lender so ensure you ask what your lender wants from you. However, some common ones that cut across include being a citizen if the UK who is at least 18 years and above. You must also produce proof of identity and income.
Why this loan is best for you
If you need urgent cash but your credit history is standing in the way, worry not.Tenant guarantor loans could be your best shot. This type of lending is best for people with the poorest credit history or no history at all. Even if you have been turned down by dozens of other lenders, when you approach a tenant guarantor loan your request will be approved. This is because the focus shifts from you and is focused on your guarantor. That is why you need to ensure your go for one with a flawless credit record and no records of CCJs or bankruptcy. However, it is important to note that your guarantor will have to pay up your loan if you fail to. So ensure you can comfortably keep up with the monthly payments avoid inconveniencing them and eventually ruining your relationship.
- It does not matter whether you have a bad credit score or no history at all
- Your guarantor doesn’t have to be homeowner. As long as they have good credit and are citizens of the UK then you are good to go.
- This type of loaning is considered to be slightly cheaper than choosing a payday or fast repayment loans. Additionally, with the fixed repayments that it requires, you will soon improve your credit score if you make repayments on time without dodging any.
- You can borrow significant amounts of money within a short time(less than 24 hours) that can help you meet urgent needs.