The idea of a loan sponsor resulted from fallout due to the credit
crunch recently. Something had to change to allow folk with bad credit
histories to be able to access new lines of credit. The solution was
the guarantor loan which has proved itself to be popular.
With a loan sponsor you can borrow money easily no matter what your
credit history. If someone will consent to be your guarantor, like
a close friend, parent or relation, you will not be credit scored,
so your credit history doesn't matter.
With a loan sponsor people can access credit again even if you have
previous bad credit items to your name like CCJs, arrears and defaults.
It is a liberal approach to lending which will again let a large proportion
of people access to finance which would not otherwise have been the
case.