My question is this, I applied for a loan to do some upgrades on my home. I do not own it, I am a tenant in a housing association property. The loan was for £3,000, to buy a new fridge, washer, carpets, do painting, and in general redo the house. The bank said I needed a guarantor. Why would the bank require me to have a guarantor for a loan?
Hope you can answer this.
This is a good question, and one you may want to ask of the bank you requested the loan from, and they required you to have a guarantor.
There can be many reasons why a bank or lender requests a borrower have a guarantor:
- The borrower has no credit history.
- The borrower has a poor credit history, or a low credit score.
These are the main reasons why a bank or lender may require a guarantor on a loan.
Have you checked your credit history and credit score recently?
You may wish to do this and also inquire with the bank as to why they need you to have a guarantor.