Guarantor loans are designed to help out anyone needing to borrow money for essential purchases who can?t get an unsecured loan themselves for various reasons. Nearly anyone can act as a guarantor for a loan, as long as they are over 25 and have a good credit history. There are many reasons to take out such a loan and they can be used towards all manner of different things. Here are five of the top uses for a guarantor loan.
Emergency Bills
Even though it is advisable to save up an emergency fund?for a rainy day, there can often be vital yet expensive bills that come out of nowhere. If you don’t have an emergency fund saved up, you may be forced to resort to other sources to pay for these unexpected expenses. From unexpected vet fees to private medical bills, a loan may be the only option if you?re not financially prepared. These are essential costs which often need to be covered immediately and when it can be hard to find the funding a guarantor loan will help out.
Car Repairs
In some cases using a loan to purchase a new car or getting your car repaired may be required, such as if you have a long commute and need it to get to work so you can keep earning a living. Car repairs are one of the most common emergencies that require imminent funding though, and it is better to save up in advance when you know a new car will be on the cards. Car repairs can appear out of the blue though, whether after an accident or due to unlucky circumstances, either way they will need to be made and paid for.
Home Improvements
All homeowners should be able to take out a secured loan if they need to make expensive home improvements, such as purchasing new appliances. However, if you rent a property and have permission to make smaller improvements then a guarantor loan can help. New curtains to crockery and more can all be covered.
Consolidation
Anyone who has a range of debt repayments to keep on top of can make the most of a guarantor loan for consolidation. From credit and store cards along with other short term loans, consolidating these repayments together can make it easier to budget on a monthly basis. Consolidation is one thing many people forget to consider when they are working to get out of debt, but it can be a good option to lower your monthly payment and save money on interest.
Engagement Rings
Borrowing for purchases should only really be done for expensive items or absolutely vital ones. An engagement ring fits under both these categories and when you?ve got the perfect proposal set up it would be a shame to miss it because you lack a ring. This is why people sometimes choose to finance an engagement ring. Always think carefully before taking out a loan for a large purchase like an engagement ring.
Would you ever consider a guarantor loan? What might you use a guarantor loan for?
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