What You Need To Know About Being a Guarantor
Many guarantor loans have started to sprout in the United Kingdom, as more and more people need their services. These guarantor loan services are a sure way to help people who have had bad credit history and therefore they are rejected by loan companies because of that. With many companies rejecting them, they need to find an alternative solution in order to be able to get loan because it is really needed in this recent time as the economy is at a fluctuating growth. These borrowers need guarantor for them to be able to get a loan, and they need to get a guarantor to be able to push through with the loan application. Have you been tapped by your friends or workmates to be their guarantor? Or are you being asked by your relatives and you could not just say no to them? Whoever needs your help, you still need to know whether you are eligible to be one.
As a guarantor, you need to be able to be at least 18 to 70 years old. This is because at these ages, people are more likely to have an income. Also in order for you to be a guarantor, you must be a UK homeowner. This guarantor loan is available in the United Kingdom therefore you have to live there and be present in that particular country. This made because when in case the borrower is unable to do the repayments that he or she needs to do, the company will be asking you to do it in behalf of the borrower instead. So, you should think through it whether you want to be involved in this kind of situation, especially when you are really not close with someone who has been asking you to be his guarantor.
Your good credit history that made you eligible to be a guarantor may only be put to bad light when you are not able to do the repayments of your borrower, which is why companies do all the proper investigations and verifications so that in case something bad might happen, you will be able to pay them because you have a good credit history. However, guarantors are usually a family member because you will know that you can trust them and they will never put you to a bad situation.
Also, a word of caution, you cannot be considered a guarantor if the borrower and you have financial links, especially when you are spouses. This is because you are married to each other therefore your income and other things are related. When you consider to be a guarantor, you should be able to face the consequences that it entails. In case things turn out the way you do not want it to and your borrower is not able to pay the repayments, you need shell out money because in behalf of them you agreed to be their help when it comes to getting a guarantor loan. Think wisely and research more about guarantor loans.