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Understanding The Difference Between Payday Loans And Guarantor Loans?

Finding yourself in financial difficulty can be a challenging time, particularly if you are already struggling from debts and a poor credit score. However, you can receive the financial aid you need even with a poor credit score. In this article, we will be helping you to understand the differences between payday loans and Guarantor loans as well as decide which is right for you.

What Is A Guarantor Loan?

A Guarantor Loan is a loan specifically designed for those that have been rejected from other loan providers. This loan requires a signature from both a borrower and a guarantor. As a guarantor, you are responsible for ensuring that the loan amount is paid in full should the borrower be unable to do so. Applying for a loan such as this is easier than ever before as there are multiple guarantor loans UK providers online that you can speak to.

How Does It Differ To Payday Loans?

This differs from a payday loan as these do not require an additional signature during the application process. However, the initial checks for eligibility are the same, you are required to have a respectable credit score to apply for a payday loan. If you can show to payday loans lenders that you are responsible with your money you are likely to be accepted. For those with a below-average credit score, this is a loan type that they are not likely to be accepted for, therefore multiple lenders offer an alternative such as bad credit payday loans to accommodate.

How Can I Apply?

Applying for a loan type such as this is easier than ever before thanks to the power of the internet. To apply for a guarantor loan, you can either get in contact with a lender directly or online. During this application process, you and your guarantor will be guided through the whole process to ensure that you can have the money within your account in just a few days. This is ideal as this will help to get you out of financial difficulty in the most responsible way.

Can I Apply With Poor Credit

If you have been rejected from other lines of credit in the past, you will be happy to know that a secured loan or Guarantor loan is likely the best option for you. They not only provide you with the security that you expect, but they also ensure that you have the emergency funds that you need within just a few days. All you need is a responsible guarantor to sign paperwork alongside you and you can have your application processed quickly. However, it is important to remember that there will be eligibility check for both you and your guarantor.

With this in mind, it is important to monitor your finances closely and ensure that you are aware of all your options before applying for finances of any kind. This is so that you have the best possible chance of playing the loan back on time and in full.

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