Who Really Wants A Guarantor Loan?

This question isn't usually asked because people don't like guarantor loans or don't like the companies that offer them. It's normally because people don't really know what unsecured loans with guarantors are and how they can help them. Typically guarantor loans are a product originated from America. In the States guarantor loan products are quite a big thing, especially when it comes to property purchase and for students. The UK versions of these financial products are similar in that they require a guarantor for the loan, but used for different purposes and are generally on a much smaller scale than what they are used for in America. For example you wouldn't be able to buy a house with a UK guarantor loan - they simply don't extend to that amount of money.

So then what are guarantor loans used for in the UK? Normally they are simply an alternative to personal loans. The difference being that personal loans are very hard to be accepted for at the moment in the UK, whereas with the concept of a guarantor loan, you are likely to be accepted without hassle. The concept of the loan ensures that the lender has security and therefore the borrower can afford to have a less than perfect credit record.

So moving back to the original question. The people who really want to get hold of guarantor loans are people who;

1) Need finance

2) Usually have a poor or non existent credit record

3) Know someone who trusts them who can act as the guarantor

If you have those three points, then you are likely to be suitable for a guarantor loan and most of all, you are definately likely to want one!