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Using Guarantor Loan as Your Car Finance Tool

Guarantor loan is a great option for those who need financing to purchase a car. With a guarantor loan, you can get a loan of up to $7,500 which should be enough to buy a reasonably pre-owned nice car or to put a deposit for a new car. Guarantor loan can be used for all types of purposes including buying a car. The following are six tips on how to apply for a guarantor loan.

1. Find a Suitable Guarantor

The first step to applying a guarantor loan is to find a guarantor because you will have to provide the personal information of the guarantor in the application form. It is easy to find a guarantor among your friends, and colleagues. You just need to make sure that the person has good income and a credit profile in good standing. If you know someone who can potentially become your guarantor, you should approach the person and reveal about your circumstances where you need to take a loan but need a guarantor to support you. You must ensure that he is bringing in sufficient monthly income and has a credit profile in good standing. If the person agrees, you can proceed to look for a guarantor loan provider.

2. Make Sure the Guarantor Loan Provider is Legitimate

The best way to find a guarantor loan provider is to do research online. It is important that the creditor is regulated by the local authority. Look for Regulated by Financial Authorityseal on the lenders website. You can usually find this information at the bottom of the homepage. They must be reachable by telephone number and email enquiry. You can try calling their telephone number to see if anyone answers it in order to determine whether the phone number is valid. If you enter the search term guarantor loans UK, you will be able to see a list of the most reliable providers in the first few pages of the search results.

3. Read Reviews

If you are interested in a guarantor loan provider, you can search for reviews written by the previous customers. Reading reviews on blogs, forums and reviews sites can help you to determine whether the guarantor loan provider is legitimate.

4. Fill in the Loan Application

When you have decided to apply the loan, you can go to the guarantor loan site and fill in the application. Most sites will ask you to enter the loan amount and loan term on the homepage. After you enter the loan amount and loan term, you will be able to see some basic information such as amount of credit, interest, and total amount payable and monthly repayment. This information is only estimates so you should take these figures seriously. They will only provide you with accurate estimates after you have submitted the application. To submit the application, you must click the apply button to go to the application page after having choosing the loan amount and loan term.

5. High Loan Amount

Guarantor loan companies offer a higher loan amount than payday loans and you can expect to borrow more than $1,000. You can choose from a loan term in between 1 – 5 years. The amount of loan you get approved will depend on many factors. Other than the guarantor, you only have to meet a few basic requirements such as 18 years of age, be a UK resident, and have a valid bank account.

6. Pass the Guarantor Loan Provider Checks

They will check the guarantor you submit to ensure that he/she meets all their criteria of a suitable guarantor. Both you and the guarantor will undergo the same checks by the provider. The provider may call you and the guarantor at a different time. If you are busy, you can inform them the most convenient time to call you. In the phone call, the provider will go through your income and expenses along with you. This is done to make sure that taking out the loan will not put you or the guarantor any financial difficulty.

Conclusion

In conclusion, it is relatively fast and easy to get approved for a guarantor loan provided that you can find suitable guarantor. When the loan is approved, you just need to set up automatic payment with your bank account to ensure that the due monthly amount is paid back promptly.