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What is a loans guarantor

If you have had financial problems in the past and your credit history has suffered as a result than you will probably be used to being turned down for loans. Most banks and loans specialists require a person to have an average credit history at best. However, some companies now consider lending money to people who are able to find a loans guarantor. This is basically a person, a family member or friend, who can guarantee you will make the repayments on the loan.

Of course, there is a catch to having a loans guarantor and that is, technically it is them who is taking the loan out. This is because if you did fall behind on your repayments, the company would turn to your guarantor to pay the outstanding amount. Many specialist companies who offer this type of loan require the loans guarantor to not only have a clean credit history themselves, but they are also required to own their home. This means the loan is secured on your family member's or friend's property, technically putting them at the risk of repossession if you did not pay the loan.

One of the largest companies who offer this type of loan is FLM loans. They do not offer any other loan service beyond the loans guarantor type. Their application form is available online, as is more detailed information regarding their loans, repayment terms and possible consequences of failing to pay.

If you are seriously considering taking out this type of loan you will need to be absolutely certain you can afford the repayments for the length of the term. You will also need proof your guarantor is a homeowner and they will have to complete and sign an application form of their own.

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