The Loans That the Finance Industry Doesn't Want You to Know About

The universal global recession known as the credit history crunch is still alive and kicking and if you listened to the news everyday you would then stay in bed with the duvet too deep, as the experts keep telling us that things won't obtain any better for a long time.

Well, listed here is a revolutionary bit of thinking... the credit rating crunch isn't that harmful!

The credit rating crunch has probably affected the financial services industry more than any other and these problems have had a devastating effect on the availability of credit score, everything from car loans to homeowner loans. Yet there are many loan corporations in the uk|around [ city ]|] who are reporting that the demand for loans has never been higher and there seems to be demand for one particular product more than any other... the guarantor loan.

In simple terms this type of loan is given to the borrower but the lender assesses the credit worthiness of the application not necessarily on the debtor but on the guarantor, i.e. The person who is supporting the application and this person normally has a good credit score history with no record of county court judgements or defaults. However you will hard pushed to see these kinds of loans advertised anywhere because the brokers lie about their existence:


  • Lie 1. Loan creditors state that they don't lend to those who are unemployed, yet they do this every day of the week.

  • Lie 2. Lenders state that they do not lend to individuals who fail their credit history score, again, edge in the game all the time.

How do they do it? By offering a guarantor loan.

This type of funding is a fundamental part of most businesses lending strategy. The reason they don't want to publicise it is because of reputational risk, after all, how many companies may wish to publicise the fact that they lend cash to those who are unemployed, on benefits, part time only, students and tenants?

Lenders are in the business to lend cash and there's only one thing they need to check with all their potential borrowers...will they repay the loan? With a guarantor supporting the loan and being there to settle the debt should the debtor not be able to pay back the loan unconditionally, then the reply is yes they will.

So remember that what a lender or bank says isn't always what it appears at first and the UK loan industry is one of the worst culprits.