In most cases, this is the maximum a guarantor lender will offer a borrower, so it can cover most purposes.
A £10,000 loan, due to its value, could cover the majority of large-scale requirements. This could be used to pay for weddings, home improvements, car finance and business costs.
How much would you like to borrow? £3,000
How long for? 3 year
£10,000 guarantor loans can be used to cover debt consolidation or home improvement.
If you have a bad credit rating, £10,000 guarantor loans may be your best option for finance without suffering from extremely high interest rates. This also depends on the loan purpose.
This type of loan, compared to others, provides borrowers with a flexible option and, is often approved quickly. Younger loan applicants could use the funds for car finance or travel. Older applicants could use the funding for wedding costs or business finance.
A loan of this size comes with different payment structures, depending on your financial situation. You should research all of the options available to work out which is the most affordable for you and a monthly budget.
If you want to borrow less than this, a £5,000 loan could be a useful alternative.
With this being a high price loan, this value can cover the majority of financial purposes. A £10,000 loan can prove to be a flexible option on the market.
Most home improvement projects can be covered by this size of guarantor loan. It could fund extensions, conversions or external work. Some lenders offer tenants a home improvement loan, providing a landlord agrees to the plans. In some cases, £7,500 is the maximum sum available if a guarantor is not a homeowner.
If you have multiple debts that have built up from credit cards, a guarantor loan is a useful way of consolidating and paying debt off. If your total debt is below the loan amount, this option could pay off remaining debts under one account.
A popular use for this sized loan is car financing when savings accounts won’t cover it. This loan value will usually provide funding for a new vehicle. If you are starting a new job and need a source of travel, or extra seats for a growing family, a guarantor loan is a useful option.
From a commercial aspect, for a new business, this size of loan could provide invaluable funding. Your guarantor may be a partner or someone with company knowledge.
Due to this size loan involving a larger value, repayments can extend anywhere up to 60 months, varying by each lender. The options you have will depend on your financial status.
Provided you budget accurately for each month, you should meet payments, on time and in full. Approaching your loan like this will display financial accountability and could help raise your credit score.
If you are in a position to make your monthly payments ahead of schedule, there will be less interest on your loan. By doing so, this would show financial stability and could help improve your credit rating over time.