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What is a Guarantor Loan?

A guarantor loan is an unsecured form of financial agreement where a third party or “guarantor” signs the borrower’s application, with the promise of taking responsibility should the borrower fails on making the loan repayments. Meanwhile, nothing is expected of the guarantor if the borrower is able to fulfil the loan repayments.

What should I do if I want to apply for a loan?

If you want to start your application for a guarantor loan, then all you need to do is enter the amount you wish to borrow and the length of time you intend to pay the loan back, plus your contact information. After that, we’ll calculate your repayments and then get back to you with a free quote. If you want to proceed, you’ll have to fill out additional details and then we’ll forward you to the best lender that matches your needs.

How long before I can get my money?

After you’ve sent your application, we will review it immediately and will let you know its status within the next hour. If everything goes smoothly and all requirements are submitted promptly, then you can expect the funds to be available within 24 hours.

What should I do if I’ve been asked to become a guarantor?

If someone asked you to become a guarantor and you wish to proceed, then you should receive an instruction on how to proceed either from us or the borrower himself/herself. You’ll most likely receive an email or SMS notification with your unique PIN, which you would use to complete the application over the lender’s website. However, before the application is totally approved, you might need to answer a few questions and undergo some checks over the phone. Once you’ve been approved, the cash will be sent to your bank account.

Can I act as a guarantor for my spouse or partner?

Unfortunately, none of our lenders currently accept guarantors who are linked financially to the applicant.

As a guarantor, how does the loan affect me?

As long as the borrower complies with all the terms of the loan, and all repayments are made on time, then the loan will not have any effect to you at all. Meanwhile, if the borrower misses payments, you will both be notified and the lender will negotiate for an ideal solution.

You will be asked only to help with the repayments if there’s no other way that the borrower can keep up. If you also turn your back on this responsibility, then the lender might resort to legal action, which can affect your credit. There’s nothing to be worried about though, if you know the borrower very well and ensure that the loan is affordable.

Why should I bother with a guarantor loan?

If you have poor credit, a guarantor loan unlocks an alternative means for you to borrow cash without resorting to high-interest loans. It may also serve as a great opportunity for you to rebuild or start building your credit if you haven’t yet.

Can I top-up my loan?

If you have demonstrated good payment behaviour, then we might be able to assist you in topping up your loan.

Will my monthly payments change?

You will be given fixed interest rates so that you’ll know how much you are going to pay all throughout your loan period.

Am I allowed to make overpayments?

Sure you are! Should your financial situation change and find that you have more cash now than you previously expected, you are allowed to make an overpayment that is up to three times your usual monthly payment. This means your total payable amount will be reduced and your term will be shortened. Best of all, you will not incur any additional fees for making overpayments.

What if I’ve had extreme credit problems in the past?

Usually, the presence of a guarantor can negate your past credit problems, and you can still be considered for a loan even if you won’t traditionally qualify for high-street loans. However, if you are presently bankrupt, are under IVA or Debt Management, then you might still have to wait a while until you are cleared before you can secure a guarantor loan successfully.

What are your fees?

There will never be any charges when you apply for a guarantor loan through Better Guarantor Loans. While we do earn our commissions whenever we refer someone to a particular lender, they will be the ones to shoulder the cost, not you.