According to some reports, someone is turned down for a credit card once every 7 seconds. As the economy starts getting back on its feet again, credit card companies are finding that applications are on the up, as people are no longer afraid to spend their cash (or indeed, the bank’s cash initially). We may have all settled into this idea a little too soon however, as the amount of people being declined is rising. This is because the credit card companies, as well as the banks and supermarkets, are still very wary about lending money. In other cases, credit companies are too eager to lend, causing issues with things like payday loans and doorstep loans that people may not be able to afford. If you want to borrow some money at the moment, but your credit rating isn’t the best, then you could find that the banks, supermarkets and credit card companies are unwilling to lend to you.
Research Your Options
If you’re sure that you want to borrow money for the right reasons, and you know that you can afford to pay back what you borrow, then it’s important not to give up on your credit hunt. Many people, once they’ve been turned down once or twice, fall into getting a payday loan for a small advance on what they want to buy, only to find that the loan is hard to manage. There are plenty of other options out there for those who have been turned down by the more mainstream lenders, and they don’t all have to be very expensive.
Consider Guarantor Loans
Guarantor loans may be a good option in this case. They’re an emerging kind of loan which used to be popular in the past and which is now coming to the fore once again as a responsible way of both lending and borrowing. With a guarantor loan, you get someone to co-sign your application, which means that they are vouching for you and giving you their support. If you cannot or do not pay the loan instalments, then they will be liable to pay in your place. All good guarantor lenders will perform an affordability check with you before paying you any money, so your guarantor should have no worries that the loan will slip through your fingers. As long as they trust you to pay, then your guarantor-applicant relationship should go without a hitch.
Understand The Contract
Before you sign on the dotted line, it’s important that you understand the contract that you’re signing. Read through it carefully with your guarantor if possible. If you have any questions about it, then contact the guarantor lender as they should be more than happy to answer your queries. This is a good way for you both the gage what the lender is like as a business; their customer service will be a good indication about what they’re like as a whole. If at any point you feel uncomfortable about it, then don’t sign. A loan is something you commit to for years, so it has to feel right.