Getting a guarantor for loans could be an option that you can look at when you have been subject to some major finance problem that has affected your credit history to such an extent that an unsecured loan company will not give you cash.
As getting credit is needed for rebuilding your credit score this might be the sole option available to start again.
By getting the assistance of a co-signer you’ll get the benefit of that person’s better credit record and that will help you to arrange a loan and one where you’ll presumably be able to get a reasonable rate of interest.
There is a danger for both people with this sort of an arrangement and although your credit score may well be low you do not want to add more bad info to your records if your co-signer doesn’t make payments.
Both you and the co-signer are responsible for the payments and any neglecting to make the payments required for the loan will end in damage occurring to both yours and your co-signers credit scores.
On the other hand you can stand to make some gains with an arrangement where your co-signer has a good credit score and all of the payments are made on time. This can help to enhance your own credit score and help you to be in a position to prepare your own finance the next time you sign up for a loan.
This is a great way to get started back on the path to recovery when there appears to be no other alternatives.
This may also show banks that somebody else has enough trust in your ability to make the payments that they have chanced their own credit score to help out and some lenders will see that as a good sign to inspire them to lend you cash once they have seen the co-signed loan paid off with no Problems.
The author is a financial advisor primarily focused on instant money loans for those with poor credit. Visit his blog to find out more about payday loans and logbook loans.