If you have bad credit, or a low credit score due to a past history of bad credit, and need a loan, one option to get a loan are guarantor loans.

Guarantor loans work this way:

Think of a guarantor as a co-signer, a joint loan.

Should you default on the loan, the guarantor is then liable and expected to make the monthly payments.

Sounds intriguing, and have more questions?

Let’s explore both sides of the coin.

I Need a Guarantor For a Loan

This can be someone who may have bad credit, and had credit issues in the past, or even someone with no credit history.

They have applied for a loan, and the lender has requested based on the applicants credit score or credit history, they will require a guarantor to grant the loan.

The applicant then has a few choices:

I am a Guarantor For a Loan

If someone asks you to be a guarantor for a loan, there are a few questions you need to ask yourself:

As a guarantor you are just as responsible for the loan as the borrower. So should they default, the lender will look to you for payments.

It is a responsibility not to be entered into lightly.

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