How Guarantor Loans Work
A No Credit Check / Guarantor Loan is a modern type of unsecured loan. With a traditional unsecured loan a potential borrower is credit scored based on their credit history recorded by the major credit reference agencies. And this credit score determines whether or not the lender will lend or not.
With a No Credit Check / Guarantor Loan the lending process replaces the credit scoring procedure with a person who will guarantee that the loan is repaid if the borrower fails to keep up repayments. So, the difference between these old and new types of unsecured loans is simply about the mechanism the lender uses to reduce their risk – credit scoring or guarantor.
So, a no credit check / guarantor loan lender will be quite particular about who can and cannot be a guarantor – and you can find out more about this at our website or elsewhere in this blog.
To kick things off – there are number of no credit check / guarantor loan lenders, but through our FREE online enquiry form you can approach them all simultaneously.
Most probably the day after you submit your enquiry you will the lenders will contact you once they have assessed your enquiry – you will then be able to compare loan offers and go with the lender who you think suits you best.
Loan paperwork will be sent to you by the lenders – they are trying to simplify this continually and in the case of one lender it is now only 1 page long. The same lender also allows you to complete your application 100% online.
The lenders will provide you with a dedicated advisor who will act as your point of contact while you are sorting out the paperwork and your guarantor. They will be there to answer any questions you have, and will be contactable by phone and email.
You can find out about the following elsewhere in this blog or at our web site:
- no credit check loan costs (APRs, monthly repayments, etc)
- requirements for your loan guarantor
- loan amounts available
- etc
The Guarantor Loans Blog 
November 1, 2010 at 12:17 pm |
Miss W asks: “Is there ever a charge put on my guarantor’s property or is it just their bank account that would be debited if the unfortunate should happen and i wasn’t in a position to make my repayments?”
Our reply: “No, the loan is completely unsecured. No charge is made on the guarantor’s property. The reason lenders specify guarantors as needing to be homeowners is simply because homeowners are much less likely to suddenly move house”.
June 23, 2011 at 2:23 pm |
Hi Do you use FLM as the people providing the guarantor loan?
June 29, 2011 at 6:54 pm |
Hello. We work with a number of specialist lenders for guarantor loans so if you apply via us we’re sure that you’ll find a lender who will suit you. You’ll be able to compare loan offers and judge which is the right one for you.
February 14, 2012 at 2:45 pm |
There is a growing number of lenders in the UK and we work with all the most reputable ones.