While a guarantor loan is seen as an effective way for many people to obtain finance when they may have otherwise been denied, it is important to know that there are criteria associated with guarantor loans. It may be a loan that is more flexible than other loans but there are still elements that need to be met, and it is important that you understand all of these elements and aspects before you sign up for the loan agreement. As you can understand, as a guarantor is promising to pay back the loan should the borrower default on their payment, there are a number of criteria that the guarantor needs to meet.
One thing that needs to be remembered about guarantor loans is that every company is different, and some will have their own criteria. While we will try and provide an overview of what most companies appear to say, it is always important that you fully check the terms and condition that your choice of loan firm provides. This should be the case with every style of loan; you should always take the time and effort to read over the terms and conditions.
Be sure to check the terms and conditions
For guarantor loans, it seems as though the maximum age a guarantor can be is 75 years old. You may find some firms who are willing to provide loans when a guarantor is older but the general consensus seems to be that this is the case. This seems to be a reasonable age considering that the loan will likely last for a year or two but again, you may find that some firms have different criteria.
If you are concerned about the minimum age a guarantor can be, you will find that the majority of firms will request that a guarantor be at least 18 years old. There are some firms that ask for guarantor to be 25 years old but if you take a look at the SUCO FAQ page, you will find that the age limits to be a guarantor runs between the ages of 18 and 75.
The wide spread of ages means that there should be an opportunity to find a guarantor who is able to support your loan application, but it is important to be confident that you can pay back the loan. It is good to have the support of a guarantor but for most people, paying off the loan and improving their credit rating is important.