Question

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.

James

Answer

James,

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:

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.

Regards,

Jon

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