Given that the presence of a guarantor is the key factor in a loan company providing guarantor loans with such an attractive rate of APR, it is obvious that the loan company will run a couple of checks on the person who is standing as a guarantor. Inevitably, some people will be dismayed to hear about any form of check being carried out but this stands to reason and it is down to these checks that it is possible to provide these loans to people. There is a lot to be said for the checks filtering out the number of bad risks who may take out a loan, because this ensures that the rest of the recipients are able to receive a much better standard of service.
Checks are carried out on guarantors
The only real restriction placed on someone acting as a guarantor is whether they share financial responsibilities with you. This means that your spouse or partner wouldn’t be able to act as a guarantor for a loan for you. Apart from that, virtually anyone can act as a guarantor for you if they are willing to vouch for you and take on the responsibilities of the guarantor. If you are asking what checks are made to stand a guarantor for a loan, we have the answers for you right here.
There are, however, three key requirements for being a guarantor, which are:
- The guarantor must own a home in the UK
- The guarantor must be aged between 18 and 75 years old
- The guarantor must be in receipt of a regular income
These aspects will all be checked by the lending company, so it is best to choose a guarantor who meets the criteria.
The guarantor will be contacted by the lending company
The lending company will also request contact details to speak to the guarantor before they conclude the agreement and provide funds. This is an understandable step and it prevents a situation where a loan applicant may have put a guarantor forward without their knowledge. A quick phone will be carried out prior to the loan being approved. If you are looking for the loan to be pushed through as quickly as possible, it makes sense to inform your guarantor that they will be contacted by the loan company, normally by telephone.
These steps ensure that the lending company can feel confident about the guarantor and the steps they have taken to ensure that everything is in place and the criteria and conditions have been met. There aren’t a lot of checks carried out prior to a guarantor loan being approved but there are some important elements that need to be met.