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If you are looking for a first time loan you might be surprised to find that it is not an easy process. The chance you will be denied is quite high, in that you have no credit history and without it lenders have no way to really evaluate your financial history. The situation it presents is that you will be placed into a high risk category, and since you are looking for an unsecured loan you need to look for options to your loan needs. A guarantor loan, or no credit check loan might be the answer to your needs, but there are requirements that you will need to also meet. You will need to find a person to act as your guarantor for the loan, someone with good credit, and willing to sign for you in case of default. If you have a bad credit score, or have never before requested a loan, then guarantor loans can also be very beneficial. If you make your payments on time and the loan is prepared correctly you can raise your credit score with this action or repair it should that be the need. The guarantor takes on a large responsibility when signing on the loan, putting themselves in a position to have to pay if you do not. It is risky and should be someone who can trust you and assist you in all aspects of the loan. The guarantor loans are unsecured loans and based on the credit history of the guarantor, rates are competitive with secured loans and have nothing to do with the applicant in these cases. A guarantor can be a family member, or a friend or associate, anyone with good credit history that understands the position you are asking them to undertake. You want to be sure that whomever steps up to assist with the loan knows your financial situation as well so they are aware of your ability to make the payments. A guarantor loan company will allow you to borrow money even with no credit history at all or if you have bad credit if you have the guarantor to step in a back you up. Most companies prefer you to be over the age of twenty-three and be a citizen of the country. Interest rates can be varied by the loaning company and should be checked to be sure you are getting the best rates. Guarantor loans are a great way to get started in building credit or repairing credit if you have the right person to help you in the guarantor role. You want to be sure you respect the person that steps up for that position as they are doing you a favor and you want to insure you honor your responsibilities. Building credit and taking care of your financial duties are important and will assist you as you decide to make larger purchases in your life. Lauren Caterham is a consultant to the Guarantor Loan company. You can find out more by visiting http://www.anytypeofloan.co.uk
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