Frequently Asked Questions
How are guarantor loans different from other loans?
The most apparent difference between the two types of loans is the need for a guarantor. Our guarantor loans require you to have a friend, family member, or anyone else you might know come and guarantee your loan for you. This is not what other loans require from you. Apart from that, your credit ratings or ability to secure your loan arequite irrelevant, something that virtually no other loan offers you.
Then how is it better than any other loan out there?
This requirement of ours allows us to disregard your credit ratings and ability to secure your loan. You don't need shiny, impressive credit ratings, nor own a house to keep as collateral. Got bad credit? It doesn't matter. About time someone said that.
However, there's more. When you have bad credit, the usual bad credit loans are certainly an option, but a rather expensive one. With sky-rocketing interest rates, there is little helping there and more of increasing the trouble you are already in. When our loans stand against the likes of payday or logbook loans, the difference in the cost of servicing these loans become apparent, with the latter even requiring you to have a car to secure the loan.
This explains the increasing popularity of guarantor loans, and set ups of providers like Buddy Loans and Piggy Guarantor Loans.
I have bad credit. What are my chances?
Having explained quite clearly a few times earlier, anyone with bad credit has the same amount of chance as someone with perfect credit ratings. This is because your credit ratings is not a factor in your ability to get a guarantor loan. If you can manage a guarantor who is eligible to vouch for you, your financial ghosts of the past will not come to haunt you.
Who can vouch for me?
Anyone who trusts you enough to guarantee your loan is eligible to be your guarantor. Be it a family member, friend, or a colleague, it doesn't matter. As long as that person meets our criteria, you're good to go.
However, for anyone to be considered eligible, there are a few requirements. Firstly, the person must not be financially linked to you. This means that your spouse is ineligible to be your guarantor. The person must be at least 21 years of age, and not just be a citizen of the UK, but also own a house here in the UK. In addition, the person must also have a good credit history so that we are able to take their word. By disregarding your credit ratings, we are effectively replacing it with that of your guarantor, and thus, they must show creditworthiness.
What happens if I default?
This is a very important question, the answer of which must be read over and again before proceeding forward. The role your guarantor assumes here bring along with itself considerable responsibility. Guaranteeing your loan means using their credibility to allow you a loan. So, in any case of default or late payments, while the repercussions will not be any different, you will not be the only one going under the axe. If you have defaulted altogether, your guarantor's credit ratings will reflect that, while a simple case of a few missed payments would require your guarantor to pay the difference.
This is why it is imperative that you know the person well. Your guarantor, before signing the contract, will be made aware of this responsibility to avoid future conflicts and prevalence of utmost transparency.