Advantages and Disadvantages of Guarantor Loans

All loans have their own advantages and disadvantages. I am aware of this thing already. But even with the awareness I have, that doesn’t mean I know what these advantages and disadvantages are, especially when it comes to guarantor loans, which I just learned about recently. 

 

I did some research and found out that this loan requires no specific credit rating because anyone can apply for it. It is as fast as payday loans but unlike payday loans, it can rebuild a person’s credit rating and allows a person to borrow more cash. There’s also no personal liability because the liability of not being able to pay the loan goes to the guarantor. 

 

Of course, there are disadvantages such as higher interest rates compared to bank loans or secure loans. The fees can be risky sometimes. And the biggest disadvantage here is breaking up your ties with you guarantor because asking someone as a guarantor is an agreement of trust. Failing to pay your obligations and breaking your agreement with the guarantor would mean you cannot be trusted as a person.

 

The key thing about this loan, is to be on time in paying it off and choosing a good company such as piggyguarantorloans.co.uk.