Will an Adverse Credit Score Affect Getting a Guarantor Loan?

Reduced income, unemployment, poor financial management, and unexpected expenses are few reasons why people end up with bad credit score. Due to this, banks and other traditional lending institutions turn down loan applications, assuming that the borrower won’t be able to make timely payments. For such people, bad credit loans have been designed to help them cope with their financial needs and get in a better financial position in order to improve their credit score.

Some people also find it difficult to get loan because they never borrowed money before due to which it becomes hard for lenders to assess their ability to pay back loans on time. So if you have a bad credit score for any reason whatsoever, you can opt for guarantor loans to cater to your financial needs. Qualifying for these loans is quite easy as all you need is an eligible person who can act as a guarantor for your loan, and the lender will transfer the loan amount to your bank account within a few hours of approval.

Effect of an Adverse Credit Score on Guarantor Loan

Typically, guarantor loans are made for people with bad credit score. So if you are a loan applicant, you don’t have to worry about your adverse credit score, as it will not have any effect on your guarantor loan. However, if you are entered an Individual Voluntary Management Plan, are currently in a Debt Management Plan, or have declared bankruptcy, then you cannot apply for a guarantor loan.

The lenders look at the credit ratings of your guarantor. It is necessary for your guarantor to have a good credit rating and payment history, so that if you fail to pay your debt on time, they can turn to the guarantor for payment.

Criteria for Guarantor Loans

The lenders that provide guarantor loans know that the past credit history is not the reflection of your current financial situation. They understand that people require loans to get back on track and improve their credit score. That is why they approve your loan application based on the guarantee of the person who understands your situation. There are a few things that you will need before you can have the money transferred to your account.

First, you must be eligible for guarantor loan as per lender’s affordability criteria. This means that you must have a regular monthly income along with a certain amount that you can use to make the monthly loan payments. Second, you must have a bank account. Lastly, you must lie within the legal age limit set by the lender. The minimum age is 18 years while the maximum age is 75 years, but it may vary from lender to lender.

Benefits of Guarantor Loans

If you go to a mainstream lender, your loan application will be rejected right away for having a bad credit score. But with guarantor loans, you have the advantage of borrowing money with bad credit rating. As long as you have an eligible guarantor and are capable of making monthly payments, you will be able to get the loan. Another great benefit is that you can have the money in your account within a day.

Gifted

If your average, everything is laid out for you. Society is simply geared to cater for masses of average people. But what if you’re not average? What if you’re above average? The way things are today… you’re at a similar disadvantage regardless of whether you’re above average or below average. This isn’t a good thing. The point we are trying to make is that is the majority of cases if you’re exceptional you are at as much of a disadvantage as someone who is not, in the state-funded schooling system.

Children who excel easily at school are often under stimulated, which can cause all sorts of behavioral problems. This in turn can mask a child’s ability as once they have started to misbehave, most teachers will focus on the problem and not the cause. In these situations, it is important to identify high achievers at the earliest stage possible. Once identified, you need to assess their level of performance. This way a gauge can be made to determine their unique development needs. Once known, teachers can effectively strategies on an approach to a more bolstered curriculum for the child.

This is all well and good and will go some way to the proper development of a gifted child… but in our view this is a stop-gap measure that needs a permanent solution if it is to be truly effective in the long term.

We encourage parents to find extra-curricular help for their gifted children as the state system simply isn’t geared to provide the kind of support needed to most gifted children. Put another way, we once worked with a child of 10 years of age. The child was able to read three times the speed of the average adult AND retain the information. Their level of aptitude for English, maths, and science was circa per-graduate stage. There isn’t a primary school in the country, save the world, that has the facilities, resources, or expertise to deal with a child like this.

GRC is well versed in such challenges. Our staff have been specially trained in supporting children of this nature. Our materials and resources are advanced but tailor made for your younger adults so that they can be used effectively. The biggest benefit of our service is that your gifted child will be around like-minded children. They feel accepted and free to express themselves. We do more than provide intellectual support. By working with us children get a holistic range of support and development, which stands them in good stead for later life.