For most of us, a car is a pretty essential part of life. You may use yours to get to work, take your children to school and to take you from A to B when you need to get somewhere quickly. There are many who would be completely stranded without one – those who live in remote areas with poor public transport links and people who struggle with their mobility, for instance. Keeping your car serviced, MOT’ed and insured can be costly, but when something happens which requires a large repair, or if you need to replace your vehicle completely, the costs can spiral to unmanageable rates.
A guarantor loan is used by many to help in situations like these, especially by those who have a poor credit history. The type of guarantor loan which is best for you will decide on many factors – read on to find out more.
If your car has broken down:
An unexpected breakdown can be an annoyance at best. If you’re on the road when it happens, the recovery costs (assuming you’re not registered with the RAC or the AA, for example) can be difficult to meet on their own, and this is before the repair costs have even been quoted. If the breakdown is due to something relatively simple to fix, you may get off with a relatively small bill. If it’s a larger problem however, you may find yourself worrying about what to do next.
Borrowing money could be your only option – and if you don’t have any family or friends who are able to help you for the full amount, then a guarantor loan (where they can still lend a helping hand but would not need to physically lend you the money to do so) could be your best bet, especially if you’ve got a poor credit history.
A guarantor loan can allow you to borrow money in a cheaper and more manageable way if you’ve been turned down by high street lenders in the past. While banks and supermarkets can lend money at relatively low rates, these opportunities aren’t open to everyone. You may not have had to borrow money before, you could have missed a payment a few years ago or you may not have lived in the UK for very long – these and many other issues are the reasons why your credit history may not be very good.
Companies that are offering guarantor loans online can lend from £1000 to £5000 at a much lower rate than other lenders who cater for borrowers who have poor credit. If you’ve been turned down by a bank, it’s likely that you would find it hard to receive this amount of money from elsewhere unless you secured the loan against a valuable item. Once you and your guarantor have completed your application, they will be able to get the money to you on the same day – perfect for emergency car repairs.