Guarantor Loans Explained

An alternative type of loan whereby a third party (usually a relative or close friend) acts a guarantor to cover your repayments should you fail to keep up with your monthly payments.

Advantages:

• Due to the extra security provided by the guarantor, this is often suitable for people who have been declined for finance in the past. Acceptance is more likely with a guarantor
• Meeting the terms of the agreement by making regular repayments can be a great way of improving your credit rating
• You can budget by fixing the length and amount of repayments
• As the loan is usually unsecured, it allows you the flexibility to choose how to spend it

Disadvantages:

• This type of loan may be more costly than other finance schemes on the market
• The loan relies on finding someone prepared to act as a guarantor. In most cases, this guarantor must also be a homeowner

At Only Car Finance, we have many guarantor options ready and waiting for your no obligation enquiry. Apply now.