If you want to take a loan but you have a bad credit history, then you can avail the Trust Two guarantor loans. Such loan can help you in your financial needs at any time. You can take a loan of any type like home loan, business loan, education loan etc. These loans help you to overcome your financial troubles.
Benefits of guarantor loans
A person who is capable to repay your loan in your difficult situation acts as a guarantor. Such person may be your family, friend or an organization. Here are some benefits of guarantor loans:
- Easily accessible – guarantor loans are there to help people with the poor history of credit. It is easy to access a guarantor with good credit score and above the age of twenty five. You should consider a person that is not bankrupt when you are looking to take the loan.
- No limit to borrow – you can borrow large amount of money because guarantor provides safety if there is a problem in repayment. If your guarantor is a home owner, then you can borrow more money. It is an advantage especially when you need funds for expensive purchases.
- Quick approval – upon successful availability and application of guarantee, the process takes less than 24 hours to get an approval of secured loan.
- Flexibility – guarantor loans are flexible because the amount you borrow, you have to repay it on the terms. But if the deadline of thirty days is over and you are unable to repay that amount the guarantor provides more time and allows longer term for repayment.
- Improves credit rating – guarantor loans give an opportunity to improve your credit score. If you wish to improve your credit rating, you should make sure that the repayment of the funds is done in time. This report is received by the creditors and it will help you to boost your credit score.
Risks involved in being a guarantor
- Affect your credit rating – if the borrower is not capable to repay the amount of home loan, then it is the responsibility of guarantor to pay or cover that repayment. But if the guarantor is unable to pay it then it affects the credit score.
- Affects your future loan – when a guarantor agrees to give a loan to a particular person, his loan capability gets reduced from the banks. It may affect your future plans and bank will not approve your loan until the past loan is paid.
- Affects your relationship – if you are tired of repaying a loan amount of the borrower and you end up that process, it will affect your relationship with the borrower. So, you have to consider the risk and have safety precautions about the repayments. It is also advisable to be a guarantor of a trustworthy person.
But if you consider becoming a guarantor for your family or friends then you have to reduce the risks by some ways. It is very hard to keep away your emotions when your friends and family are involved.