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The Benefits of Guarantor Loans

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Debt is one of the most stressful things you can go through in life. It can not only financially debilitate you but can have untold and severe effects on your health, both physically and mentally. The last thing you may want to do is contemplate taking on more debt. That’s even if you felt it was possible to secure the loan you need.

With a guarantor loan, however, things are a little different. In most cases, there are no credit checks and as long as you have a guarantor with a healthy credit history, you can secure a loan for the money you desperately need. If you have dismissed guarantor loans in the past, it may be time to consider them again. Before you make your decision, either way, look at the main ways you can benefit from this type of loan.

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Available Even if You Have a Poor Credit History

It can be incredibly hard to get the finance you need if you have a poor credit rating and history. Many of the traditional lenders tend to run strict credit checks before they will offer loans. This is not the case with guarantor loans. You may not be subject to any credit checks at all. Importantly, though, your guarantor will.

More Flexible

There are not as many restrictions on a guarantor loan, particularly not when it comes to the amount of money you can borrow. The reason being it’s the guarantor with good credit who is providing the building society or bank in question who are offering the loan with the security they need that they would not get from the borrower if dealing with him or her directly. You will normally be allowed to borrow the amount of money you feel most comfortable repaying in a period that best suits you. This is in stark contrast to payday loans where there is a stricter and shorter repayment period.

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Easy and Quick Process

Compared to other loan application processes, most find that the procedure involved in applying for guarantor loans is a lot simpler and quicker. After you have completed the documentation successfully and with a guarantor in place, it often only takes around one day for it to be completed. There is also the added bonus of security and a safety net an individual can have, knowing that if they get into further debt or financial difficulty, they have someone to shoulder the burden somewhat.

Can Have a Positive Effect on Your Credit Score

If you have a poor credit history and are looking for a way to boost it, you may think that the last thing you should do is take on another loan. However, in some cases, guarantor loans can be just what your credit score needs if your guarantor has a healthy credit score. As long as you both meet the monthly loan repayments, the agencies who conduct credit score reports will receive a report about how you have performed and that you have been paying off the loan as you agreed and your score is likely to receive a boost.

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If you are interested in guarantor loans or any other form of financial product, why not use the comparison service offered by Nowloan.

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