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Guarantor loans, or an unsecured loan, are a popular option for people with less than perfect credit or no credit history at all. If you have reached out for a traditional bank loan or credit card recently and you have been denied, it’s time for you to see what’s preventing you from moving ahead in this world when credit is necessary. There are a few pieces of information of which you will want to be aware to keep your credit from getting any worse, and you may be surprised that you can get a guarantor loan to get your credit profile back in order. Lenders Running Credit Checks The most important factor for you to know at this very moment is: Every time a potential lender reviews your credit profile your score drops. If you are caught in a cycle applying to one lender after another trying to find a an unsecured loan, STOP! Every time your credit profile gets ran only for you to get denied you’re just a bit worse off than you were before. Don’t apply for any more avenues of credit until you’re aware of what’s going on with your credit history. Order Your Credit Profile There are two (2) ways you can gain access to your credit profile for free. The first of the two (2) ways is: You have access to view each of the three (3) major credit bureau’s stored information about your credit profile once annually without charge. Knowing what information is contained within each of the three (3) major credit bureaus will help you know where to start. Perhaps none of the information contained in your credit profile is valid and you’ve been the victim of identity theft. Maybe you made a few bad decisions when you were younger which you didn’t realize would haunt you for years to come. Either way, it’s important for you to see what each credit bureau is saying about you before you try to get a guarantor loan. The second way that a person is able to view his/her credit profile for free is by ordering it directly from the bureau whose results ended up in your denial. Every time you are denied credit, you will receive a letter with the associated reporting agency. If you receive your credit profile and it turns out that everything is correct, you have a couple options. You could spend the next couple years repairing your credit and wiping away old debt or you could apply for a guarantor loan. Guarantor Loans Guarantor loans are a type of unsecured loan offered to a person with less than perfect credit and co-signed for by a friend or relative who has impeccable credit. Guarantor loans are generally easier for people to get, especially if there is somebody close to the person seeking an unsecured loan who knows the ways in which he/she has turned his/her life around. Instead of pleading to a loan officer to take into account the aspects of your current life as you’re living, you’re asking a friend or relative to have faith in your current position and vouch for your ability to repay the unsecured loan you’re seeking. The beauty about a guarantor loan is: You get credit from all major credit reporting bureaus for responsibly and successfully paying off the loan – not the person who co-signed for you! Loan Responsibility If you are able to find a person in your life to help you get a guarantor loan, you will have been offered a second chance at re-building your credit profile which many never get. If you fail to pay off the loan you are not only putting your own credit at further risk, you are negatively affecting the credit profile of somebody who trusted you and lent you good faith. It is up to you to make sure you make loan payments on time as outlined in the initial agreement when you were awarded your unsecured loan. Stay active throughout the life of your guarantor loan repayment plan until you have completely satisfied your end of the bargain. If you are able to successfully and responsibly pay off your guarantor loan you will find that you are more easily able to secure credit cards and other traditional loans for which you previously did not qualify. As long as you stay in the habit of not taking credit you’re unable to pay back, the rest of your entire life may be easier if you’re able to protect your unsecured loan and pay responsibly until you are done. Guarantor loans require somebody in your life to place a decent amount of trust in you and let a lender know that they will take the responsibility of your loan in the event that you default. It’s time to take the golden opportunity which has been laid at your feet to finally repair your credit profile once and for all; so remember to treat your guarantor loan with respect and make all the payments as they are due. Chris Davison is Head of Marketing at the UK's leading guarantor loans provider. You can find out more about their offers at http://www.anytypeofloan.co.uk.
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