Guarantor loan can help in case of no credit history


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » Guarantor loan can help in case of no credit history

Guarantor loan can help in case of no credit history

The content is accurate at the time of publication and is subject to change.
Let`s begin with the issue of credit history; it is necessary to comprehend the same prior to further advancements. In short, credit history is the documentation of previous borrowing, along with repayments. This also consists of information in regards to arrears, non-payments and bankruptcy. It is to be noted that this information is most used by loan lenders to resolve the applicant's keenness to reimburse the debt. This is also known as credit worthiness. Factors leading to no credit history Studies confirm that an assortment of factors may make an individual have or lead to the generation of no credit history. The most prominent factors happen to be immature age, absence of a bank account at any time, or never getting a credit of any sort. On the contrary, you or any other individual can build up a history through adopting a variety of credit agreements. These include credit loans, credit cards and mobile phone contracts. Fallout of no credit history Absence of no credit history with any individual is never accepted as a positive aspect. What`s more, lenders, in this day and age, consider this as risky. This is because your efficiency as a debtor is not proven, and they are unable to determine whether they will receive the repayment in due course. Perhaps these are enough for you, but many persons with no credit history are finding it difficult to have finance in their hour of need. Guarantor Loan What is the best way to deal with the abrupt crisis then? It is to capitalize on the notion of guarantor loan. Guarantor loans perform on the concept that the applicant adds an extra property holder into his application. This individual acts in the form of a guarantor, and assures the credit will be paid back, provided that the debtor becomes unable to cope with the repayments. What are the basic effects then? Any such development emboldens the spirit of the guarantor and renders him an additional security regarding the lending. Another development also takes place in one fell swoop. This points out that they are competent to turn out to be more helpful to people denied credit in a different place. Positive effects of guarantor loan Guarantor loans, without doubt, have been of great assistance to many people in the United States of America. Thanks to the same, copious numbers of people have realized that they can fix their own credit history. The moment a persons` credit history has improved, they are subject to qualify for a greater number of credits, including mortgages. What is your lesson then? If anyone has partial contact to credit or remains devoid of any strong credit history on the whole, guarantor loan can be a great help in the long run.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Posted: February 12, 2018

The sun shines more and more each day, flowers are in bloom and you already feel how hot it is getting - summer is here. Summer holidays are almost here, and you are in need of dire preparation. You can lift in spirits and let CreditLand ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!