People who apply for unsecured loans with a guarantor will do so
knowing that they then have access to an easy source of money usually
within three days of applying. You can pay the loan before term if
you want to without any redemption penalties. The loan may be used
for most purposes.
With unsecured loans with a guarantor people may gain access to
credit again even with bad credit with things like arrears, defaults
and CCJs to your name. This is a liberal approach to credit and will
once more let a large section of people access to lines of credit
which would not otherwise have been the case.
The idea of unsecured loans with a guarantor came about as a result
of fallout from the credit upheaval recently. Lending practices had
to change to allow folk with bad credit ratings to be able to access
new lines of credit. The answer was the guarantor loan and this has
proved very popular.