Applying for a guarantor loan is a fairly simple process, especially when compared to something more complex like a bank loan. However, there are still certain requirements you must meet to be eligible for such a loan. The lender will be looking for specific proofs and certain documents to back up your application. We’ll cover the documents you need so that you can apply for the loan with confidence.
There are a few different forms of ID you can use to prove that you are you. Besides just showing that you are the person whose name you are signing on the lending contract, you also need to prove that you are a citizen of the UK and that you are of legal age to borrow money through a financial institution.
In order to do that, you will need to present your UK driver’s license or your passport. That should be enough to prove your identity and your age. Be sure these documents are up to date and not expired before you try to use them to prove your identity.
Guarantor loans are deposited directly into your bank account. If you don’t have a valid bank account, then you can’t be approved for the loan. The lender will run your bank account numbers before approving you for the loan to ensure that it checks out and that you have a valid account. You can present your bank ID card, bank account number or debit card as proof of account and to give the lender a way to deposit the money. Your cash will be electronically deposited shortly after your loan is approved. In most cases, guarantor loans are deposited within a 24-hour period after the loan is approved.
Proof of Residence
You will also need to prove where you live. This is a common lending practice, because it gives the lenders a way to track you down or send mail to you if you do not answer phone calls or responds to messages they leave for you. As proof of address, you can bring in a utility bill, an electoral roll, a lease or rental agreement, a deed to a property or a bank statement. Any of these will have your physical address on them. The lender will need a physical address, and a P.O. Box will not suffice.
Certain residential documents can strengthen your application and make you a better candidate for certain loans. For example, if you own your own property instead of renting one, you are demonstrating that you are financially successful and able to make payments regularly.
Keep in mind that all these documents need to be up to date. For example, a utility bill that is six months old probably won’t be accepted. The lenders want you to demonstrate that you have lived at the address recently, so usually anything older than three months is out of the question.
Proof of Income
Finally, you need to show that you are earning income. This demonstrates that you are financially sound to a degree, and that you have a way to earn more money to repay the loan. This is easily proven by bringing in a payslip. Once again, the document needs to be up to date and show that you are currently employed; so, you should bring in a pay slip that is as current as possible.
The amount of money you make in a month, which will be shown on the payslip, will help the lender determine how much you can borrow safely. Keep that in mind as you are requesting a loan of a certain size.