I Want Guaranteed Payday Loan, Should I Need Guarantor or Not?

Multiple lending options provide two sorts of scenarios for the borrowers. First, they are happy that a number of loan options are there to utilise in tough situations. Second, they get confused which one is more suitable or which loan belongs to which lending term. Apart from that, it also depends upon the lenders how they have formulated their loan deals so that borrowers do not have any confusion or their every query gets answered.

While reading this blog, you might be thinking for which types of loans that we are talking about. Let’s take an example. Many people borrow money through the products like guaranteed payday loan from direct lender in UK. Some of them usually get to know A-Z knowledge about the loans but few of them have plenty of queries in their mind. One of their queries is, do these loans need guarantor or not?

In most of the times, we used to read that guaranteed loans must be backed up by the ‘third party’ i.e. guarantor to ensure the repayments on time on behalf of the main borrower. But when the term ‘payday’ attached between them, then the confusion occurs when you already know that these small loans usually do not need any guarantor. Thus, should they approach any guarantor or not, becomes very puzzling for them. To assist you, we are concentrating our discussion further.

When You Don’t Need A Guarantor...

Different lenders have different lending policies and no one wants to imitate others. However, placing an accurate explanation would not be possible but we can think in an overall manner. Lenders do not need any guarantor when the borrowers have the following requirements:

• Funds are required during the financial emergency where most of the time borrowers need a small amount like from £1000 to £2000
• When they do not want any delay in the loan disbursal and they want funding as quickly as possible

In such scenario where lender does not need guarantor’s signature, they usually prefer borrowers’ income status to judge whether they are capable of making repayments on time or not. 

When You Need a Guarantor...

Guarantor’s presence brings a lot of benefits for the borrowers. There is another thing that not everyone has the backup of a reliable person to take their loan guarantee. The most important benefit is related to the low interest rate. However, you can provide a guarantor if you have certain aspirations like:

• You need a large amount to fulfil your long financial goal 
• You have a guarantor with good credit history and who is a homeowner 

Note: If you do not have the guarantor but want large funding, then you can use collateral as the guarantee and London Cash lenders do accept your loan application. 

A short but comprehensive analysis 

The above explanation clearly indicates that guaranteed payday loans from direct lender do not need any guarantor’s acceptance. If are employed somewhere, you can easily attract lender’s nod to your loan application. However, those people, who do not have any full time job, can also seek approval via their side income sources but the borrowing amount should be small. 

Description: This blog dedicates the explanation on whether you need guarantor or not whenever you will go to apply for guaranteed payday loans from direct lender in the UK financial marketplace.