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.