If someone asks you to be a guarantor, you need to make sure that you are comfortable with this request. It is very important to ask yourself should I act as a guarantor and then think about what the situation involves and what you may be required to do. There is definitely a lot to be said for helping out a friend or a family member in need but you have to make sure that this is the correct option for you. Taking the time to learn about what the role of guarantor entails and what will be required of you is extremely important.

You’ll find that there are questions that you should ask yourself before you commit to acting as a guarantor. Some of the questions you may want to ask yourself include:

• Do you know the person well enough to know if they can be relied upon to make payments on time and in full every single?
• Do you trust the person enough to meet the loan requirements?
• Has the loan applicant displayed that they need the loan?
• Has the loan applicant displayed that they are in a position to afford to pay the loan?

Many people are hesitant to talk about money and you can see why. Finances are a very personal matter but if someone is asking you to help them obtain a loan, they are involving you in their finances and you have a right to understand what you are letting yourself in for.

Acting as a guarantor can be a real help for a friend

When it comes to being willing to act as a guarantor, there is a great deal to be said for thinking about whether you would be willing to loan the money to the individual yourself. If you had the money but you were hesitant to provide them with funding, you have to ask yourself why. If you don’t trust the individual to pay you back, can you trust them to maintain payments to a loan company?

Guarantor loans are a great way for people with bad credit to obtain the finance they need, but they need someone with a positive credit rating to help them out. This is why you need to think about your finances and see if you are in a position to help them out. If your credit rating isn’t personally the best, you may find that you are not in a position where you are in a position to help out a friend.