Who Can Be A Guarantor For A Loan?
No matter what sort of loan you are looking to take out, it is vital that you understand the full terms and conditions involved with the loan. There can be an increasing tendency for people to skim the terms and conditions or even ignore the completely, but this will only lead to problems in the long term. This is why there is a need to make sure that you don’t act in this manner.
It is vital that you take your finances very seriously. Yes, dealing with money can seem dull but if you fail to deal with financial issues and matters in an effective and appropriate manner, you will find that you cause much more trouble for yourself in the long term. This is why you need to take the time to familiarise yourself with every term and agreement that is applicable to your loan.
If you are looking into a guarantor loan, there are a number of different aspects that you need to take into consideration with one of the most important aspects being who can be a guarantor for a loan. Given that finding your guarantor is crucial and should be one of the first things that you do, you will need to make sure that you are fully up to date with the regulations surrounding being a guarantor.
Virtually anyone can be a guarantor
The good news to start off with is that virtually anyone can be a guarantor. This should give you a number of options to consider but there are some people who are unable to act as a guarantor, so make sure that you are aware of the limitations. You are not allowed to ask someone who is financially reliant on you to act as your guarantor. You also cannot ask someone who you share financial responsibilities with to act as your guarantor. If you and your partner split mortgage payments or you share bills between you, you cannot ask your partner to be your guarantor.
This may sound annoying but you can see why this ruling is in place. There are still plenty of people you can turn to in order to act as your guarantor though, which has to be seen as a positive thing for the vast majority of people. If you want to make sure that you are choosing the right person to be your guarantor, how about asking:
- A friend
- A work colleague
- Your parents
Of course, virtually anyone can be your guarantor so you could ask a neighbour or even your landlord. As long as your guarantor is willing to act as a guarantor for you, you’ll find that they can serve this role. However, this is an important role with a great deal of responsibility so it is not as if people should willingly accept to be a guarantor without knowing too much about you.
The guarantor should know you well
Given that if you fail to make payments on your loan, the guarantor will be asked to make the payment, they want to make sure that they know you well. This could leave the guarantor having to shell out a considerable sum of money so it is vital that they are confident about the agreement that they are putting into place. When it comes to arranging a guarantor for a guarantor loan, you should be fully prepared to answer a lot of questions.
Other criteria that the guarantor will need to meet include having a regular income, being a homeowner in the United Kingdom and being within the age limit imposed by the guarantor loan company. Different loan companies have different criteria so make sure that you know what the loan company is asking for from a guarantor.
When you think about the positive impact a guarantor loan can have on your life, the range of criteria isn’t too much. You will likely find that there will be some friend willing to provide you with the support that you need. However, you need to make sure that you are not going to let the other person down. This is a big responsibility and they are showing a lot of faith in you by backing you for this type of loan.
This is why it is so vital to make sure that you find the right guarantor and then do whatever you can to ensure that the loan is paid off on time and in full.
Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.