Debt is just like a dark cloud affecting deeply on all corners of your life. It not only directly influences on your credit score but also on your happiness. Debt involves several emotional and psychological aspects that affect an individual’s health. Are you facing a debt stress? Mostly people today have overloaded their shoulders with the burden of debt to meet crises and other needs. A study confirms that if a person is successful in repayment of his debts, he achieves self confidence and happiness in his life. Therefore, if he is unable to pay back, life becomes unmanageable, stressful, and disturbing. To help people, the government has introduced several debt management solutions for different countries such as trust deeds, IVA, bankruptcy and others. A popular solution is the issuance of guarantor loans for people who are suffering from poor credit scores.
There are situations when a person who has applied for a loan does not meet the eligibility requirements of loan. It can happen due to various reasons such as low income, poor credit score, and poor track record. In this case, you can introduce a guarantor who would provide the guarantee of repayment of loan to the lender. Guarantor loans are very popular as they are easily made available by the banks. Your dream to buy a house can be fulfilled by the guarantee of a third person who confirms the repayment of the loan.
How these loans work?
A guarantor or a third person has to give his equity as mortgage to improve the weight of loan application. With the addition of the guarantor’s mortgage ability, the loan applicant can get the loan and buy his dream house.
What are the documents required for guarantor loan?
- It involves the documents indicating the credit rating of the loan applicant and the guarantor
- Documents indicating the source of income
- Identity documents
- Guarantor’s property documents
- Bank details of the guarantor and the loan applicant
The analysis of the guarantor’s equity helps to calculate the amount of the loan you would be able to get. You can conduct a pre analysis of it with the help of guarantor calculator. The calculator takes into account the value of the property and the amount you desire to borrow. There are other details as well that place an importance; like whether the guarantor is the owner of the property or not, what he earns and whether it is a mortgaged property or not. It gives an abstract idea about how the banks perceive you as a loan applicator. The calculator helps you to know how much loan you can get from the bank.
What are the benefits of guarantor loan?
- Seek credit in a bad phase – When it is totally impossible to get loan if you have a poor credit score, you can find a guarantor who may be your relative or friend ready to assure the bank that you would repay the loan.
- Fulfill your necessity- When in times of dire needs, its relatively easy to get guarantor loans that can help you out with your immediate financial burden.
Speak to the financial advisers at Guarantor Lender to get full details and the application form to apply for the loan.