One of the great things about guarantor loans is their process speed. Providing everything goes smoothly most lenders will be able to pay the loan out the same day as you apply, however this will hinge on your ability to submit the relevant documentation swiftly and correctly at the first time of asking.
Obviously, each lender will have a different process however throughout this article we are going to discuss how you can speed up your guarantor loan application.
Do the calculations
One sure-fire way to slow down your application process is by changing your mind about the loan term or loan amount half way through. This is because when you change the details of the loan, both you and your guarantor will have to re-sign your relevant agreements. Before you even apply make sure you have calculated exactly how much you need and have stipulated your loan term to ensure that the repayments fit your affordability criteria.
Make sure your guarantor is suitable
One of the main stopping points in the guarantor loan process is when the lender carries out suitability checks on the guarantor. As I outlined, different lenders will have different criteria regarding the guarantor, however generally a guarantor must;
- Be a homeowner
- Have a good credit history
- Be in receipt of a regular income
Some lenders may also require the guarantor to be on the electoral roll at their current address or be in full time employment, but these are the general guidelines. If your guarantor fails to meet any of these criteria points then the lender will require you to find another guarantor which will simply slow down the process.
Be willing to provide additional documentation
The majority of checks in the guarantor loan process will be automated, however occasionally these checks will fail and the lender will require you to submit some supporting documents. This may include; proof of ID (such as a driving license or passport), proof of income (such as a bank statement or payslip) and/or proof of address (such as a utility bill).
There are various ways in which you can send these in including email, text or fax. By taking a picture of these on your smartphone as you apply, you can be confident that if you are asked to provide any of them you’ll always have them at hand.
It is inevitable that the lender will have to speak to both yourself and the guarantor over the phone at some point during the application process. So, make sure that you always have your phone on you, and you make the guarantor does the same. The easier the lender can contact you, the quicker the application can get paid out.