How Can I Find the best Value Guarantor Loan?

If you are researching guarantor loans you will find that they can be more expensive than other types of loans. However, if you have a poor credit report and need a guarantor loan so that you can borrow money, then you may have no other option. They are expensive because the lender is taking a risk by lending to someone with a poor credit record. However, if you find the right loan, then you will be really pleased that you used one. It is therefore worth trying to find out which is the best value. There are different ways to find out which is the best and below are some tips on doing so.

– Financial advisor – an independent financial advisor will be able to find out all of the information that you need easily and will be able to tell you which guarantor loan currently provides the best value for money. This is great but they do charge quite a lot of money. You may find that the money that you can save from their recommendation will not be enough to be covered by the potential savings you make asking them compared with doing some quick research yourself on a comparison website. So think hard about this option and whether you think that it will be worth it.

– Comparison website– there are quite a few comparison websites available. These will take a selection of products and compare them so that you can see which has the cheapest interest rate. This can save a lot of time and allow you to quickly see which will charge you the least. However, these sites may not compare every single lender as they tend to only use those which pay them commission and not all of them do. Some lenders also do not put themselves on these sites. The comparison websites also tend to only compare interest rates, when there might be other costs that need to be considered as well.

– Friends and family – it can be worth talking to friends and family and see whether they can recommend a lender. They will have no reason to be biased and so will be able to tell your straight whether they have used this sort of lender and whether they had a positive or negative experience. Although guarantor loans are relatively new, you may still find that there are people you know that have experience of using them. They might tell you to avoid certain lenders or have lots of praise for particular ones.

– Money forums, message boards and blogs – these websites can be a useful source of information. They are less likely to be biased than some other sites and might have reviews of different types of guarantor loans. You do need to be wary as the authors may get commission if they produce leads on certain products. However, on message boards and forums this is less likely. It is best though to ignore the odd comment of one opinion but if many people seem to agree on something then it is more likely to be true.
– Compare them yourself – there are not that many companies that offer guarantor loans. This means that you might have time to search for them and compare them yourself. You will be able to take a look at their websites and see what the costs are and how they compare as well as looking at other features that you are interested in. You will need some time, but it could be well worth it if you are able to save money.

It is also worth remembering that you will have a different idea of value with regards to guarantor loans than other people. Therefore you need to think about what factors are important to you and include these in your search. It could take a while to do all of these checks, but it will be worth it. You will be able to apply for a loan that you know offers you the best value. You will be able to be confident in your choice and know that at the time, you picked the best option for you. Obviously rates may change in time and you may find that other loans become better, but as no one can predict the future we have to just compare what is available now. It may be possible to switch to a different lender anyway, if there is a better one after a while of having the loan.

It is worth noting that with a guarantor loan you will need to nominate a guarantor to make repayments if you are not able. You may want to include them in your decision so that they can feel part of it. They may feel that because they have to sign the paperwork and potentially make some payments, that they need to be included as well.

How Do I Pick the Best Lender?

There are many lenders available for us to choose from and it can be really daunting knowing which one to choose. Some people will turn to an independent financial advisor to help them to pick because they find the choice so difficult. However, they are expensive and so it can be better to do the research yourself or if you have no spare money you may have no other choice!

There are a number of different things that you might want to look for in a good lender –

– Offering the products you need – it is important that they offer the types of loans that you are looking for. This sounds obvious, but you should work out what type of loan will suit your needs the best first and then pick form the lenders that have those. It can be easy to set your hopes on a lender and then find out that they do not have what you want and pick something unsuitable or feel really disappointed. So start by deciding on the loan type then look at which lender will suit you the best.

– Costs – cost is a really big issue for most people when they are borrowing money. You can compare lenders using the interest rate and so this will give you some idea of which costs the most You do however, need to be aware that they may have other fees as well. There could be set up fees, early repayment fees and fees for late or missed payments. It is wise to be aware of these as well and think about whether you are likely to need to pay them and if so, which looks like they will charge the most. It is nice to think that we will not need to pay late fees, but it is good to be aware of how much they are, just in case. Also you need to think about the set-up fees as you will have to pay this and how these compare. If you hope to pay the loan back early, then any early repayment fees will also be relevant.

– Repayments – It is a really good idea to find out how much the repayments will be and how many there are to pay. Consider how much you can afford to pay in the way of repayments and whether these are going to be affordable for you. You may wish to repay the loan as soon as possible and therefore do not want many repayments. However, this will mean that each repayment will be more expensive and so you need to consider whether you can afford them. So make sure that you calculate what you can afford and find the loans which have affordable repayments but the least possible of them.

– Reputation – for some people the reputation of the lender is important. They want to go with a lender that they have heard of because they feel they will be a more valued customer or get a better service and price. Especially if they’re taking out payday loans and other types of short term credit. This may not be the case, but you should be able to check the reputation of the lender online. There are reviews of different lenders so if you find some then you will be able to find out more about those that you have not heard of. Also ask friends and family as they are not biased and will give you their honest opinions about their experiences with different lenders.

– Customer service -for many people the customer services is an important factor. If you have any problems then they will be who you turn to for help. This means that you will want to be able to get through to them easily, understand them and find them helpful and polite. The customer service can vary a lot between lenders and so you could find that it is not as good as you had hoped. It can therefore be wise to get in touch with them before you take out a loan and find out what they are like. Ask them questions and see how helpful and polite they are.

These are just a few factors that might be important to you when choosing a lender. Think about what you might find important and include those factors as well. It is a good idea to research hard because it could make a huge difference to how much stress your loan gives you. Finding the right lender which charges fairly as good repayment terms, good customer service and a good reputation can make a huge difference to your experience as a borrower. So take your time and ask friends and family and look online for help as well so that you can get as many opinions as you can before your commit to your loan.