Those who apply to get a loan with a guarantor do so knowing that
they have access to an easy line of credit usually within three days
of applying. You can pay the loan before term if you wish with no
redemption penalties and no early redemption fees. The loan may be
used for any purpose in most cases and there are some insurance options
available in certain circumstances.
Some people might argue the main benefit of being able to get a
loan with a guarantor is that your previous financial record becomes
totally irrelevant. Every one of one's past arrears, defaults and
missed payments have become just a thing of the past. Provided that
a credit worthy guarantor is found then you can obtain money again,
despite all the things that had gone on in the past.
With the ability to get a loan with a guarantor people can access
credit again even if you have a poor credit history featuring things
like defaults, arrears and CCJs. It's a more liberal approach to finance
which will once more allow a significant section of society access
to lines of credit which would not otherwise have been there.