It is getting harder to get a bank loan nowadays with more and more people getting rejected for a bank loan due to the current economic situation. So, a bank loan is ruled out if you need some emergency cash to cover your temporary expenses. If you turn to a payday loan, you have to repay in 2 weeks to 1 months which you couldn’t come up with the money so fast. Besides, payday loans have skyrocket interest fees and their loan amount is only up to one thousand dollars. A good alternative to solve your temporary financial problem is to apply for an online guarantor loan.
1. Easy to Qualify
Guarantor loan has more lenient requirements so there is a higher chance that you will get approved. This type of loan is designed for people who don’t have a perfect credit score. With most lenders, you need to provide proof of a good credit score to get a low-interest rate for the personal loan. With a guarantor loan, you are allowed to use the credit profile of your guarantor as proof.
The key is to find a guarantor whom you can prove has a clean credit profile and a good income to repay the loan that you intend to borrow. You must have a job with enough income to pay off the loan even though the lender uses the credit profile of the guarantor to determine the lending decision. The lender will call you and ask about your income and expenses too. They want to make sure that you are capable of paying back the loan before approving it.
2. Ease of Access at All Time
Everyone will face problems of short of cash from time to time. Guarantor loan provides ease of access for those who need the cash immediately to cover an emergency. You don’t have to wait for the bank to open to apply for the loan. You can apply for the loan as long as you have a computer or mobile device like tablet or phone with a stable internet connection. You can apply online through a guarantor loan company at any time by filling in the online application even though they also operate based on business hours. If your application is submitted during business hours, it may get approved faster. You can check the official site of the guarantor loan to find out their business hours.
3. Faster Processing Time
Guarantor loan has a much shorter processing time than traditional loans. One of the reasons is that you don’t have to travel back and forth and make numerous phone calls to the bank. Another reason is that the lender for this type of loan is more lenient and they use automated software to check the risk level of the borrower. You can expect to receive a phone call from the guarantor immediately after submitting the application. If you provide accurate information, your loan should get approved fast.
4. Affordable Monthly Payment
Guarantor loan has affordable monthly payment and you can easily incorporate it into your budget. Because the interest rate is fixed, you don’t have to worry about the monthly payment increasing or decreasing from month to time. The fixed monthly payment allows you to play your budget accordingly and make sure that you will always have the funds you need to apply for the loan.
5. Fixed Interest Fees
The interest fees are cheap because you are using your guarantor’s good credit score and income to apply. It is not just for covering emergency expenses but it can also be used for covering short-term or long-term expenses. The online rate of a guarantor loan is always cheaper because the loan provider wants to promote online lending. Another reason is the competition with other online loan providers causes them to have to lower the interest rates to attract more customers.
In conclusion, a guarantor loan can come in handy when someone with poor credit history urgently needs some funds. With a guarantor loan, you will be able to easily borrow a large amount of money without any hassle since you have a guarantor who will be there to meet the repayment in case you lose the income to repay the loan.