If someone asks you to be a guarantor for them with respect to applying for a guarantor loan, there are a number of things that you will want to consider. While you should think about the responsibility of the role, the first thing you ask yourself is if can I be a guarantor for guarantor loans? It may be that you are not able to take up this position and therefore you don’t need to spend any time thinking about the process.

However, you’ll find that the vast majority of people can be a guarantor for a guarantor loan.

You cannot share financial responsibility with the person applying for the loan. If you share a bank account, a mortgage or you have obtained joint finance with the person looking to apply for the loan, you will not be allowed to stand as their guarantor. After that, though, there are very few limitations or restrictions on who will be allowed to act as a guarantor.

Some of the criteria you need to meet include:

• You need to be of the right age – at least 18 years old and usually still of working age
• You need to have a good credit rating
• Some lenders may require you to be a property owner or at least own a car

If you can meet all of these requirements and you are happy to act as a guarantor for the applicant, there is absolutely nothing to stop you from acting as a guarantor. Whether you are a family member, a friend, a colleague, an associate or neighbour, you will be allowed to act as a guarantor if you meet the relevant criteria.

Can I be a guarantor for a loan?

Of course, you need to make sure that you are happy to act as a guarantor. Being a guarantor is a major responsibility so you have to make sure that you are happy taking on this responsibility. Hopefully the borrower will be able to pay off the loan on time and in full but if they can’t, it will fall on you to pay for the loan.

If you are not in a position where you can afford this responsibility, you shouldn’t take on the responsibility of being a guarantor. This means you should take over the position with the person looking to apply for the loan and then come to the best possible decision.