Guarantor loans are one way to obtain a loan if you have a less than perfect credit score. Lenders are most likely to offer you a loan if someone is able to guarantee the repayments and the total payment of your loan if you should fail to repay it. If you are looking for a guarantor loan you will want to get the best deal for your circumstances, but are there guarantor loans low APR available?
Whom Are Guarantor Loans Suitable for?
Guarantor loans are suitable for anyone who has a less than perfect credit rating or who has yet to build up a credit rating due to them being young.
Sometimes it can be equally difficult to obtain credit if you have never borrowed before and do not have a credit rating as such, than if you have a bad credit rating. Lenders are more lenient in offering cash with a guarantor as they have someone to fall back onto in the event you are unable to repay the loan. Guarantors have to have a good credit rating, be over 18, have a regular income, a bank account and live in the UK.
How Much Is The APR on Guarantor Loans?
The APR is the amount of interest that is added onto the loan over the year. The APR is going to depend on several factors and these include:
- Your credit score and that of your guarantor;
- The amount you want to borrow;
- The term you want to pay the loan over.
How Your Credit Score Affects the APR
All lenders will look into your credit score when you apply for a loan and they will look at the credit file of the person who is going to stand as your guarantor. Your guarantor has to have a decent credit rating, preferably a good one.
The lower your credit score and that of the guarantor, generally the higher the rate of interest will be on the loan. The lender sets the APR, so this may vary between lenders. If we help to match you with lenders, you can check the APR and go for the best deal for your needs.
You can apply for a guarantor loan even if you have a poor credit score, providing your guarantor has a good one. However, you are not going to get an APR that is as low as someone might with a good credit score.
Applying For Guarantor Loans Low APR
We make it easy to apply for guarantor lows to get the best deal possible for your current circumstances. Some of the benefits of applying for a loan with our help include:
- You can make one single loan application within minutes;
- You will know within minutes if we can match you with a lender;
- From your application, we will attempt to match you with a lender from the panel of UK lenders that we work alongside. This means multiple searches with one loan application;
- You can check out the details of the loan and if you are happy to go ahead sign up for the loan;
- The money is paid into your account, often on the same day, depending on how much you want to borrow.
How Much You Might Be Eligible To Borrow
Your credit rating and that of the guarantor is going to go towards determining how much you might be able to borrow with a guarantor loan. The lenders we work with offer loans from £100 up to £5,000. Depending on the amount borrowed, lenders may allow you to extend the cost of borrowing for up to 36 months.
When considering a loan bear in mind that you are going to have to pay interest on the loan so this has to be factored in when working out how much you can afford each month. Also, take into account any fees that are added onto the loan. Generally, the longer you spread the loan over the less the monthly repayments are but the more interest is accumulated on the loan.
It is possible to get guarantor loans low APR but your credit rating is typically going to factor into the APR rate offered by the lender. We do work with lenders who offer some of the most competitive rates and numerous loan options based on your personal circumstances.