Alternatives To Guarantor Loans
Though cheaper, in terms of its interest rates, than payday loans and other personal loans for people with bad credit, guarantor loans are still expensive compared with traditional options. This is why experts highly recommend borrowers to always check cheaper alternatives before resorting to guarantor loans. In fact, it is encouraged to apply for a guarantor loan only after you’ve exhausted all other alternatives. Below are some of the more affordable options you can try:
1. Cash Advance:
If you’re employed whether part time or full time, chances are high that you can request for cash advance from your employer. The amount may be limited but it’s a better not to mention cheaper way to obtain quick cash.
2. Family Or Friends:
Probably the cheapest way to borrow money is with family or friends. Most of the time, there is little to no interest involved. The danger, however, is with mixing money and relationship. Make sure you pay off the loan on the date you promised to repay it.
3. Credit Union:
If you’re a member of a credit union, that’s also another great place to borrow low interest funding. In general, you can borrow from £100 to a couple thousands of sterling pounds at interest rates much lower than guarantor loans.
4. Credit Card:
Another way to get cash advance is through your credit card. If you have remaining balance in your account, go ahead and use it because the interest again is much lower with credit cards than guarantor loans.
5. Peer-to-Peer Lending:
You might also want to try P2P lending. This new platform of borrowing money eliminates the middleman so the interest is lower. It happens online where individual lenders connect with borrowers to complete the transaction. Click here for more information about P2P lending.