Loans | Chateaux Isere Finance

Finance: How to Acquire Guarantor Loans

25 Mar 2021 Ray Chen Leave a comment

You may have a quiet work life, but that doesn’t mean there aren’t problems with you; you can face a crisis at any time. Through financing, you are very likely to find the cash to help you meet your individual needs. But getting loans such as guarantor loans is not that simple. There are some measures that you need to fulfill for your loan application to be accepted.

Introduction to Guarantor Loans

If you have a severe credit record but want to acquire money, you should consider a guarantor mortgage. Nevertheless, it can be a hurdle to get one if you have a guarantor. There is no guarantee that you will get the loan. Remember that the guarantor acts as additional security for the lender. Thus, you need to make sure that they have a good credit rating.

Another thing they may look at on you will be a minimum amount of annual income. Make sure that you are not in default on some of your previous loans or credit card bills. Here are some tips that can help you increase your chances of getting a loan.

Make Payments On Time

Remember that getting a guarantor does not mean that you will get the loan. The loan company will still take a look at your credit score to get an idea if you can repay the loan on time. The amount should be within one-tenth of your monthly salary. This way, the lender will be able to close the deal. It increases your chances of being approved for a personal loan, and you can get attractive interest rates.

Know The Risks

We recommend that you let the guarantor know the risks and responsibilities involved. The guarantor can be anyone, such as a friend, parent, sibling, or simply another person. Your credit score is what lenders decide before giving you a loan. If your score is not good enough, you will have to take out a loan yourself.

Apply Directly

If you get your loan through a broker, you may want to give additional fees for the service. You don’t want to pay unnecessary expenses. The only thing you can do is apply directly to the lender to avoid the extra fees. When you apply for your loan, make sure you provide all the details to the best of your knowledge. They may consider seeing you or providing you with a phone number to verify the information you have provided.

Choose The Right Lender

You certainly shouldn’t choose just any lender. It is a great idea to get quotes from several lenders. This way, you will be able to pick the best lender for the financing. Even if you have a bad credit score, your guarantor will give you a chance to get a loan. Do not ask for large amounts if your application may be denied.

Another mistake many people make is using in multiple places. Lenders will doubt your goals, and your chances of being approved for the loan will decrease. Also, recurring applications will hurt your credit score. Therefore, before applying for a personal loan, make sure you know the terms and act accordingly to get approved for the loan. You may discover other attractive offers depending on the situation you are in.

20May

Why Are Personal Loans a Good Idea

20 May 2018 Ray Chen

Are you in need of financial help? Are today’s financial troubles putting a strain on your hard earned cash? Is what you make not enough to sustain yourself and your family? Due to all the financial problems, affecting millions around the world, it’s essential to know some of the reasons why we need loans.

Increasingly in today’s society, people are faced with scenarios in which they need a primary source of funds, but short-term borrowing is unfeasible for any of some reasons. For anybody in this situation, the most convenient solution is a personal loan (also known as a ‘cash advance’ or ‘fast cash’). Especially for people who cannot demonstrate a good credit history or those who cannot turn to family & friends for help, a personal loan is the quickest way to get through a short-term cash flow crisis. So, are loans really helpful? Well, below are some of the reasons why you need a loan.

Unexpected Bills

Imagine the hardship caused by an unexpected bill. All of a sudden you are faced with having to pay out a significant amount of money by the end of the week, and you don’t get paid until next month. More and more people are faced with precisely this problem and the stress that follows. One of the few solutions is to secure the cash you need with a personal loan to avoid any potential penalties or other consequences of later bill payment.

Medical Expenses

We are all aware that medical treatment or hospital stays can be costly; if you are involved in some accident and don’t already have health insurance or medical cover, you may need to find some extra money very quickly to pay the costs incurred by your care. Taking out a personal loan should be one of the first options you consider to get the cash you need in the circumstances like this.

Home Renovations

If you’re a homeowner and you’ve ever started on some home improvements, you’ll remember how often your renovation plans take a turn for the unexpected. More often than not, starting one project around the house leads to finding other things that need repair, blowing out your carefully planned budget with a whole load of unexpected expenses. You can stop work and leave your renovations unfinished, or you can look at getting some fast cash through a personal loan.

Better Interest Rates

It’s crucial that you always do your research before committing to borrowing money. You’ll usually find that you can get the lowest interest rates, and thus more affordable repayments, from a direct lender’s loan, because direct lenders are not structured to have to pay commissions to agents or brokers, and they can pass these cost savings straight on to the borrower.

During the process of loan application, it’s also essential to ensure you read through all the relevant terms and conditions attached to the loan, especially the ones that relate to ‘hidden’ fees & charges. The best way to avoid extra expense after you’ve secured the loan is to know what’s involved before you start.

26Jan

What You Need To Know About Personal Loans

26 Jan 2017 Ray Chen

You can borrow a personal loan from any financial institution or bank. Personal loans are classified under the general purpose loans. This loan can be used to meet your personal needs such as payment of hospital expenses, consolidating debt, home repairs or improvements any much more.

These loans are also used for catering other expenses such as fees payment and paying for holiday trips. The borrower is expected to meet some pre-requisite qualifications when obtaining these loans. Here are some of the characteristics of personal loans that you need to know.

They are secured

This means as a borrower you are not required to have any asset to qualify for a loan. This makes it harder to obtain such a loan since lenders are unable to claim your asset or any other property in case you are unable to repay your loan. However, other actions can be taken by the lender if the borrower fails to repay the loan such actions include hiring collection agencies or filing a lawsuit.

Most of the collection agencies are known for using intimidating tactics such as constant harassment even though this is illegal. The loan amounts offered are fixed rating are offered loans at a lower rate as compares to people with a poor credit rating.

These loans are fixed

The amount offered is based on the income of the lender, credit rating, credit history and borrowing history. However, there are some banks which offer pre-fixed amounts as part of the personal loans.

They have fixed interest rates

The interest rates on loans do not vary depending on the repayment period. The interest rates on the pre-fixed loans are mainly based on the credit rating. This means that individuals with a good credit rating can get loans with low interests. They also offer loans with variable interest rates. Loans with varying interest rates are sometimes difficult to manage when making the payments.

These loans have fixed repayment periods

The repayment period for the personal loans is usually spread over a fixed term. The repayment period for the short term loans ranges between six and twelve months while for large amounts can be scheduled over five to ten years. This means that long-term loans have high interest rates due to the longer repayment periods as compared to the short term loans.

Affects credit scores

The credit bureaus also monitor personal loans. The account details of your loan are submitted to this body by the lenders. Default on payments is likely to affect your credit rating thus reducing your chances of securing future loans.