Do you want to build your own gym, get an extension to house your own equipment or perhaps you have a bigger project in mind? Do you need a secured loan but have less than perfect credit? Maybe you need to make a major purchase and don’t have the cash? If you find yourself in such a situation, you may want to consider taking out a loan with a guarantor.
Guarantor loans are designed to help those with a less than perfect credit history find the money they need. Below are some tips that can help you secure one of these types of loans.
Find a Guarantor Who Is Willing to Support Your Application
The first step in securing a guarantor loan is finding someone that will support your application. To start this process, start by asking friends and family members if they will help you out.
Asking someone to be your guarantor is a lot to ask, so make sure you go to the right person. Not everyone has the resources needed to cover a guarantor loan if something goes wrong.
You should keep in mind that if you fail to pay back the loan, the guarantor will have to come up with the money. If they fail to do so, they could lose their personal property. Always pay back your loan on time, so there is never an issue.
Compare Guarantor Loans
After you have found someone to support you, it is time to shop around for loans. There are many different lenders out there that offer guarantor loans. But not all of them are going to be suitable to do business with.
Choose a lender that has affordable interest rates and flexible terms. The last thing you need is a lender that is hard to deal with.
Additionally, ask potential lenders what their fees are. Make sure you get a copy of the loan terms and read it to see if there are any hidden fees. Some lenders will place hidden fees in the terms, which can make the loan more costly.
Ensure You’re Eligible for The Lender’s Criteria
If you have no credit or bad credit, chances are that you’re not going to qualify for all loans. So, before you get your hopes up, make sure that you are eligible for the lender’s criteria. If not, you could be in for a let-down.
Different lenders require different terms to be met before they will lend you money. For example, some require borrowers to have a certain credit score. Others require the guarantor to have a certain amount of net worth.
Consider Other Forms of Lending for Your Situation, Such as Bad Credit Loans or Loans from Credit Unions
If your credit score is downright awful, chances are, a guarantor loan is not going to be right for you. However, don’t despair because there are other ways of getting the money you need.
One way to get quick cash is by taking out what is known as a bad credit loan. These loans are designed for people who are working to build their credit history.
Bad credit loans can be found online and are much easier to qualify for. In many cases, a bad credit loan can be obtained by filling out a simple form. If approved, money will be deposited into your bank account in as little as one working day.
Another alternative to a guarantor loan is a credit union loan. Credit unions work with people who have bad credit and supply them with the money they need. This type of lender will require you to have some collateral in most cases. But they require much less than a guarantor loan does.
Apply For Guarantor Loan
If you are confident that you qualify for a guarantor loan and have the support, you can start the process today. It might take a while for you to be approved, so the sooner you start, the sooner you will have your money.
When you apply for a guarantor loan, make sure you have all the correct information on the form. This will save you a lot of time by not having to go back and forth making corrections. Incorrect information will unnecessarily slow down the whole process.
If you are in the market for a guarantor loan, the tips above can help. Remember that you should always see if you qualify for the loan before applying.
To ensure you stay fit and healthy, no matter whatever financial decisions you make, or obligations you have, check out our article: Health is Wealth, and if you’re investing in any major gym projects, feel free to tell us about it in the comments below, and join in the conversation on Facebook, Twitter & Instagram!