Why is the interest higher than a ‘normal’ bank loan?
Guarantor lenders specifically helping those with a poor credit rating 😀
- This means that they can help millions of customers, who by often no fault of their own find themselves battling with:
- A less than perfect credit score and who;
- The more conventional lenders will not lend to
- But overall this type of lending comes with a higher level of ‘risk’, which means that the lenders need to charge;
- A higher rate of interest, as;
- On a small percentage of loans, they won’t get their money back;
- So the higher interest rates reflect this.
It’s worth remembering that a guarantor loan can still be up to 25 times cheaper than a payday loan, so it’s all relative!