If you think that a guarantor loan would be of benefit to you, there are a number of things you should consider. It is always important to ensure that you do need the money for the loan and that you will use the money in an effective manner. Just because you can obtain a loan doesn’t necessarily mean that you should take the loan. Many people have found that their financial problems have deepened or got considerably worse after taking out a loan that they didn’t need or weren’t financially prepared for.
However, if you are confident that you need the loan and that you are in a position to pay the loan back, a guarantor loan may be exactly what you are looking for. This is why it can be helpful to go over the requirements of who can be a guarantor. Thankfully, there are not too many barriers to people acting as a guarantor, so you will hopefully find that there are some options available to you.
A guarantor cannot share financial responsibilities with the applicant
It is important to note that if you share financial responsibilities with someone, they cannot act as a guarantor for you. If you share a bank account, a loan, a mortgage or any form of financial agreement, that person is not allowed to act as a guarantor for a guarantor loan for you.
You should also note that the guarantor should be:
- At least 18 years of age
- Someone with a good credit score
- Someone who owns a home or a car
- Should be of working age
The terms and conditions that a guarantor needs to meet will differ from company to company, so it is important that you look to see what each company is looking for. Knowing the criteria that has been set by the lending company should be one of the first things that you check out when wondering who can act as a guarantor.
The role of the guarantor is an immensely important one and it can have a huge impact on the solutions on offer to an individual. This is why being a guarantor can be of great benefit; offering vital support to a friend or loved one but it is not a decision to be taken lightly. This is why the applicant and the potential guarantor should sit down for a full and frank discussion with respect to finances and the implication of the loan.