If you have suffered the ill effects of a bad credit score because of the cumulative effects of years of poor decisions, you may well be wondering if you are ever going to qualify for a loan again. The fact is that traditional lenders aren't exactly chomping at the bit to take a chance on someone who has a less than stellar credit history. However, you can still obtain a guarantor loan.
What Are The Major Advantages Of Receiving A Guarantor Loan?
Guarantor loans have many advantages over traditional loans. Some of these major advantages include:
- How Can A Guarantor Loan Help Someone Who Has Poor Credit?
There are several ways in which a guarantor loan can help someone with poor credit. To begin with, there is normally no credit check to suffer through before you can apply for a guarantor loan. In some cases, a credit check may indeed take place after you complete your application, but normally the results will not disqualify you from receiving the loan.
- Can Obtaining A Guarantor Loan Help Raise Your Credit Score?
The second advantage of a guarantor loan is that these loans are specifically crafted to address the financial situation of individuals who have terrible credit histories. In fact, receiving a guarantor loan and paying it back on time can even help you improve your credit score because the creditor you select will normally have a high credit score. By receiving the loan and making the payments on time, you can "piggy back" on your lender's score and gradually begin to raise your own.
- Can You Receive More Money With A Guarantor Loan?
The third and, perhaps, most crucial advantage of obtaining a guarantor loan is that most guarantor lenders will allow you to borrow a significantly larger amount of money than traditional lenders. In some cases (depending on the specific circumstances), a guarantor loan might be as high as $5,000.
- Why Are Guarantor Loans A Better Option Than Traditional Loans?
For all of the above reasons, guarantor loans are a far better option for people with poor credit scores than traditional loans. The lack of a credit check in most cases, coupled with the higher chance of receiving a bigger loan, is ample proof that guarantor loans can be a good option.
