What Are Guarantor Loans?
An Unsecured Loan or Guarantor Loan is a loan that is not backed by collateral. This type of loan is based solely upon the borrower’s credit rating, however, the loan can also be lent in good faith – merely being secured against the borrower’s good-name and therefore much easier to obtain.
However, a guarantor loan is a type of finance that is backed by a “guarantor” who agrees to pay back the full amount should you, the borrower, be unable to do so, for example, should you lose your job or your income is cut.
An unsecured loan or guarantor loan is considered by many to be much cheaper and carries less risk to the borrower than a secured loan.
Click here for more information on unsecured loans.