Did you know that the first guarantor loan was offered in 2007? That means that the financial product has only been around for a number of years. Compared with other personal loans for people with bad credit, the option is relatively new but the demand has been rapidly increasing over the years prompting more lenders to offer the financial product. Today, there are now more lender than ever online and more loan deals to peruse for borrowers.
How do you find the best guarantor loan deals for your needs? Here are practical tips you can follow to find your way to affordable guarantor loans:
One common mistake borrowers keep on committing is failing to shop around. Once they spot one good deal, they grab it thinking that there are no better deals out there. But that's usually where you're wrong. As more lenders offer the product, competition is also getting fiercer and stiffer which means that lenders are scrambling to offer you better deals when given the chance. Before signing anything, do shop around.
To find the best deals on your guarantor loans, availing of free and no obligation quote services from top guarantor loan websites online also helps. Getting a quote is in fact highly recommended so you'll have a better idea of how much fee you'll be paying per month if you borrow a certain amount payable at your desired term.
Taking advantage of top comparison sites is another practical step you can take to find the best guarantor loan deals. If you don't have sufficient time to spare shopping around for the right lender, you can zero in on the top lenders in the UK based the site's list. You can then proceed compare more specific factors such as loan amount, loan term and interest rate.
One of the best parameters to use when comparing the cost of guarantor loan deals is the Representative APR. APR or annual percentage rate covers the loan's interest rate, charges and related fees. Ideally, the lower the APR, the more affordable the guarantor loan will be. When looking around, make sure to look for lenders offering the lowest APR.
While APR is important, equally vital is the extra charges and fees detailed on the small print. Before signing any dotted line, double check the small print for additional fees and charges that may be applied on your loan for cases such as late repayments, miss payments and more.
Another very simple step you can take is to ask family and friends for recommendations. If they've taken out a guarantor loan before, chances are high that they know a reputable lender that offers competitive rates on their offers. This way, you won’t have to spend time shopping around or comparing deals. Just make sure that the person recommending the lender or the deal was completely satisfied with the product and rates.