The question:
Do I need a guarantor to apply for an unsecured loan?

Archie's answer:

An unsecured loan is based on the credit score of the applicant. You do not need a guarantor to apply for a loan of this type as acceptance is based on the credit history of the individual alone. Because this type of lending is not secured against any collateral, the lender is taking a risk. The lender’s decision to accept or decline an unsecured loan application is based on the applicant’s previous ability to manage debt. For this reason, the best interest rates are given to applicants with the highest credit score, as they pose less risk. People who have been rejected for an unsecured loan due to a poor credit score may choose to take out a guarantor loan instead. This is a type of unsecured loan that does not take credit reference into account. Instead, the lender accepts a guarantor of your choosing. This guarantor should be someone that you know well such as a good friend or family member who trusts that you will repay the loan. This trust is then transferred to the lender who is able to give the unsecured loan at a reduced risk because if any payments were missed, the guarantor would be responsible.

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