Guarantor Loans: What you need to know in 2015

The guarantor loans industry started off with Amigo Loans introducing an "old style" loan to the market whereby if you have a poor credit history, or a low credit score then you could still get a loan with the help of a friend or family member who would "guarantee" the loan. Like what the banks used to do back in the olden days when you didn't have much of a credit history.

There are now in 2015 a whole range of Guarantor Loan providers, lenders, and comparison sites offering guarantor loans online.

Guarantor loans have become more popular as they offer an alternative form of loan for people with a poor credit rating who wouldn't have otherwise be approved for a loan without a guarantor. Ideal if you have no or little credit history or you have a history of bad or adverse credit on your file.

If you are considering this type of loan then you will need to have a friend or family member in place who is happy to step up and be your guarantor. They will need to understand the role of the guarantor and that they will be required to repay the loan in the event that you were unable to. It is very important therefore that they fully understand what they are getting themselves into.

Guarantor oans can be granted to both tenants and non homeowners, and they work like ordinary personal loans whereby you can generally borrow between £1000 and £7000 to be repaid over 1 - 5 years in the case of most guarantor lenders.

If you are looking for a loan then it is a wise decision to shop around for the best and cheapest rates as not all the lenders offer the same deals. Also, you may find that if you are rejected for a loan with a particular lender then there may be another lender who is willing to borrow to you.

Using a good comparison website will show you at a glance the rates and products on offer from each lender so that you can quickly compare them side-by-side. This will allow you to make a better and more informed decison when choosing a lender.

Guarantor loans have generally been welcomed into the market place and provide a much needed credit source for many struggling to get a loan in 2015.