Hi. I have been reading up on guarantor loans but I’m still not sure whether this is the right option for me? I’m not quite sure I fully understand what one is and wondered if you could help? Is this something you offer?
A Guarantor loan is a loan that requires somebody to guarantee to make the loan repayments if the borrower doesn’t pay. A guarantor is typically a parent, family member or close friend.
The Guarantor will usually have to be a homeowner with a good/excellent credit rating. If you have a low credit score it is likely that a guarantor loan will be cheaper than getting a loan solely in your name.
I have missed a lot of credit card payments in the last year and I think I have a default. I think my mum would be willing to be a guarantor, as I want to pay off my debts. Is this my best option?
If you have a default and numerous late payments it is likely that a guarantor loan will be the cheaper option if you are able to get someone to be a guarantor for you.
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