It’s a loan where you don’t need to find someone who’ll keep up the repayments if you can’t make them. So most loans are loans without a guarantor – where it’s just between you and your lender. But non-guarantor loans are generally aimed at people with poor or bad credit who don’t have a guarantor.
Also to know is, can a 20 year old get car finance?
Car finance for 19, 20, 21 year olds
Generally as you get older your credit history gets better which could improve your chances of getting access to car finance. … Lenders may still accept an application if you have poor credit history, but some may offer you car finance at a higher rate of interest/ high APR.
Similarly one may ask, can I get car finance if I have a guarantor?
Can I get car finance with a guarantor? The short answer is yes – there are guarantor car finance loans. If you’re a young driver or someone applying for car finance for the very first time, you might find that car finance with a guarantor is an option available to you.
Can I get car finance with bad credit with a guarantor?
Yes – Guarantor loans are a brilliant way to access car finance if you struggle with poor credit scores due to a rocky credit history! Of course, guarantor loans do come with many points to consider, particularly for the person who is to act as the guarantor in the agreement.
Some lenders will permit a parent to obtain finance for their child. However, the person who takes the finance will need to be the registered keeper of the vehicle. Some lenders also require the borrower to be the main driver. This will be included in the terms and conditions of the loan agreement signed.
We credit check the guarantor differently to the borrower because the criteria for our guarantors is slightly different. We check they’re financially stable and haven’t had trouble paying back their bills in the past, which lets us know the responsibility of standing guarantor is right for them.
There is no such thing as being blacklisted for finance. … At Arnold Clark, we have a panel of 20 lenders, meaning you have lots of options when applying for car finance.
Your income – you need to make sure you can afford the monthly repayments on offer, and the finance meets your requirements. A reliable income shows a lender you’ll be able to afford your payments, which may mean you don’t need a guarantor. Length of agreement – you can choose how long you’d like to pay for your car.
The finance company uses its ownership of the car as security against the loan (like a mortgage), so if you fail to pay it can seize the car. This can mean it’s easier to get than normal loans, though you’ll usually need to pay a deposit (often 10% or more of the car’s price).
Being a guarantor involves helping someone else get credit, such as a loan or mortgage. Acting as a guarantor, you “guarantee” someone else’s loan or mortgage by promising to repay the debt if they can’t afford to. It’s wise to only agree to being a guarantor for someone you know well.