Guarantor Loans

Should I Use a Guarantor Loan to Pay for a Holiday?

Most of us like holidays and we will often go regularly in order to have a break or to spend time with our family. It can be a really lovely thing to do and a great way to recharge our batteries. However, all holidays have to be paid for. Therefore, you will need to think about how you are going to pay for your holiday. This is something, which can be fine if you have savings, but if you do not, then you may need to look at your borrowing options. It is wise to look at all of your borrowing options so that you can decide which will suit you the best. Consider the features of the specific loan and think about whether it will suit your needs. The example used here is a guarantor loan, so that you will be able to see how it works and then apply it to other types of borrowing.

How Much Can you Borrow?

It is important to start by thinking about how much you will need to borrow in order to cover the cost of your holiday. This will vary greatly depending on the length of your holiday, how many of you are going and where you are going. You may not know exactly how much it will cost, but it is good to have a vague idea by looking up that sort of holiday and seeing what they cost. You will need to then see whether the loans you are looking for will provide you with enough money. The guarantor loan will lend between £1,000 and £10,000 and so it would be suitable for a more expensive holiday. Of course, even if your holiday is cheap, you might be tempted to borrow extra money. While it can be fun to have some extra money to treat yourself, you could find that it makes it much more difficult for you to be able to repay the loan if you are borrowing more money. You may also have some money of your own, perhaps in savings that you could use, rather than borrowing more money.

Will you Qualify?

It is also good to make sure that you will qualify for the loan. There are different requirements for different types of loan. With some you will need a good credit record or other things. With a guarantor loan, you will not need a good credit record but you will need someone who has a good credit record to be able to act as your guarantor. You will also have to fulfil some general rules which apply to all loan such as being ages eighteen or over and being a UK resident with a UK bank account.

Can you Afford the Repayments?

It is also really important to make sure that you check to see whether you will be able to afford the repayments. You will find that there are different requirements for different loans and so you will need to check carefully. For a guarantor loan, you will need to make monthly repayments and therefore you will need to find out how much these will be so that you can check to see whether you can afford them. With a guarantor loan if you cannot make the repayment, then your guarantor will pay it for you. However, you will not want to rely on them all the time. They will be someone that you know and you will not want them to have to keep making your payments for you. So, it is still important to make sure that you check that you are going to be able to manage the repayments because you will want to make them as often as you can manage.