How to find a Guarantor
Guarantor loans are normal unsecured loans designed especially for those who seek fast financial help but have trouble with poor credit ratings. However, unlike normal unsecured loans, a requirement of guarantor loans is that you have someone ready to take care of the debt. Because of this, it is possible to secure thousands of pounds with just one phone call to a friend or family member; hence the massive increase in popularity of guarantor loans in recent times.
Who can be your guarantor?
- 1. Family members or friends – As much as family members or friends would love to offer us financial aid when we really needed it, they may often not have the sums of money lying around to do so. Acting as your guarantor is the next best thing for all concerned as they will be able to help you financially and to get the money you need.
- 2. Work colleagues or your boss – Everyone within your workplace will know perfectly well that you have a steady stream of reliable income each month and therefore are ideal candidates for guarantors. Whilst there may be many colleagues with whom you would rather not share your personal financial information, there is no shame in asking for a guarantor for help, especially during such hard economic times.
- 3. Landlords – Anyone who collecting regular income from you, such as a landlord collecting rent, will know that you are reliable and capable of meeting monthly repayments. As such, landlords make a good choice for a suitable guarantor.
The concept of guarantor loans is relatively new and therefore not everyone knows how to find a guarantor. Popular choices of people to act as your guarantor are:
What your guarantor requires
Finding a guarantor is often much easier than contacting them and building up the courage to ask for the financial assistance. Prepare yourself will all the necessary details, including your full financial situation, your credit rating and even CCJs. Write down all of your income and expenses so that you can show your guarantor that you can afford to pay the loan payments back each and every month so that they won’t have to. It is important that you both feel completely comfortable so that you can establish the trust necessary for the process.
Ensure them of how you plan to reach your monthly guarantor loan repayments and why it is you require them in the process, and why you can’t attain an unsecured personal loan or secured personal loan. It is also important that your guarantor understands their role within the loan and that they are liable should you not be able to make your payments. Remember that whoever you find to be your guarantor is taking a risk and doing you a massive favour in repairing your credit rating and offering you financial assistance. Ensure that once your loan is repaid, you repay your personal debt to your guarantor to show that their favour was not forgotten.