A new website has been officially launched this week offering Guarantor Loans to people that require credit but have a credit history that prevents them from obtaining credit through the normal channels.
Whitstable, Kent -- (SBWIRE) --06/07/2011 -- Guarantor Loans Arranged is a broker website promoted by online loans broker Interfinancial Limited. With the serious deterioration of the loans and credit industry, getting a loan has been nigh on impossible for anyone with less than a perfect credit rating to get credit. In fact, it is pretty tough for anyone, even with a perfect credit rating, to obtain finance. For those with a really bad credit rating, getting credit is effectively a no no.
However, with the advent of Guarantor loans, this has all changed. Anyone can now borrow up to £5,000 provide they can produce a guarantor to back the loan up. The guarantor is the one that the lender basis the lending decisions upon, so the guarantor needs to have a clean credit history, be employed and also be a homeowner. As for the credit status of the borrower, well that is pretty much irrelevant. He or she could be unemployed and still be granted a loan.
The purpose of the guarantor is to honour the loan should the borrower fail to maintain the repayments. For this reason, the guarantor needs to be a close friend or family member as there needs to be a large element of trust and understanding between the borrower and the guarantor.
Guarantor loans offer a useful product for people that really want to help friends, children or relatives out of a financial situation but are not in a position to lend the money themselves. It also offers hope to those that need to borrow some money but are hampered by their previous history.
By taking out a guarantor loan and repaying the loan in full and in a timely manner, the record of being able to manage a loan properly will help boost a sorry looking credit rating and help towards any future borrowings.