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Do I need a guarantor to get a short-term loan?

two friends chatting on a sofa
two friends chatting on a sofa

You can get short term credit without a guarantor.

The majority of companies don’t ask for a guarantor before they’ll lend you money. Of those that do, usually, these are firms that specialise in exactly that, they ask someone to vouch for a borrower to make sure they can afford to repay the loan. What’s more, guarantor loan companies tend to lend larger loan amounts to customers over longer periods.

What is a guarantor?

It’s someone who agrees to repay a loan on behalf of the person taking out the money, if they can’t repay it. Usually, a guarantor can be anyone who has a relationship with the actual customer, such as a family member or a friend. There are usually restrictions that the guarantor has a good credit rating, they may need to own their own home, and will need to be able to make the repayments if they’re ever asked to.

Who guarantor loans are for?

They are for people who want to borrow higher amounts of money, but due to factors such as a bad credit rating or because they’ve never had credit before, they have difficulty borrowing from traditional lenders. As some guarantor loans are as high as £7,500 and others could be even higher, they might be an option for a customer who needs more than the typical £1,000 limit of some short-term lenders.

To find out more about glo guarantor loans, click here.

What type of short-term loans don’t require a guarantor?

Most kinds don’t need a guarantor. For local Credit Unions, it depends on the Union. Some might want a guarantor, while others might not.

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