Published: 19/01/2021

Things to keep in mind

...if you’re applying for a guarantor loan

If you’re short, getting cash easily becomes a priority. There are a number of ways to do this such as asking for a salary advance, sell something, or borrow from family or friends.

This is not always possible however so to get the loan you need right away, why not consider obtaining a guarantor loan? So here are some things to keep in mind.

What are guarantor loans?

If it’s hard to get a loan, guarantor loans offer an opportunity to borrow, with the help of a guarantor. A family member or friend ‘guarantees’ to cover your payments if you can’t.

Guarantor loans may be a good option if you’re starting out and don’t have a credit history, have a poor track record when it comes to managing your credit, with missed credit repayments, defaults or too many credit applications. One of the benefits of a guarantor loan is that they give you a chance to build a good credit score, providing you keep up with your repayments.

You do not need to leave home to get one. Online applications are straightforward and do not require as much documentation as conventional loans do, as here at 1Plus1Loans we use open banking to assess you and your guarantor for affordability and credit worthiness.  We also complete checks with a credit bureau.

Terms and conditions

Like any loan a guarantor loan has strings attached. It needs to be repaid, with interest, over a fixed term.

If you miss payments, more interest will be added meaning you pay more than if you had kept to the repayment schedule. If you do not pay your guarantor loan, your guarantor may be asked to step in and make the repayments.

Be sure to read our terms & conditions page.

Applying for a guarantor loan

All lenders have unique requirements but you should expect to provide the 1Plus1 guarantor loans with proof of identity, age, income, and banking details, a verified email address and mobile number to contact you.

At 1Plus1 guarantor loans we will complete creditworthiness and affordability checks on you and your guarantor. Bear in mind that if you do not pay your guarantor loan on time your credit rating will be affected, making it more difficult to obtain loans in the future.

Guarantor loans work in the same way as any loan, you borrow money from the lender, and then pay it back in monthly instalments. The only difference is that a third party, your ‘guarantor’ is part of the agreement – having guaranteed to make your payments if you can’t.

At 1Plus1 guarantor loans, the guarantor will initially receive the loan. At this stage, they can decide whether to give it to you, or return it to 1Plus1 guarantor loans within the two-week ‘cooling-off period’. Providing your guarantor is happy with you the borrower and the agreement, you (the borrower) will get your money from the guarantor. You’ll have to pay it back to 1Plus1 guarantor loans as per the terms of your agreement (usually between one and five years).

Last updated: 22/03/2021