{"id":26538,"date":"2022-04-18T09:17:09","date_gmt":"2022-04-18T08:17:09","guid":{"rendered":"https:\/\/www.lendingstream.co.uk\/blog\/?p=26538"},"modified":"2022-12-20T11:51:39","modified_gmt":"2022-12-20T10:51:39","slug":"who-can-be-a-guarantor","status":"publish","type":"post","link":"https:\/\/www.lendingstream.co.uk\/blog\/who-can-be-a-guarantor\/","title":{"rendered":"Who Can Be a Guarantor and What Does It Means?"},"content":{"rendered":"\n<p>Are you unsure about what\u2019s involved with a guarantor loan?<\/p>\n\n\n\n<p>If someone can\u2019t take out a loan because of their credit history, a guarantor can help them get one.<\/p>\n\n\n\n<p><strong>The type of people who might need a guarantor are:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>A young person who doesn\u2019t have much of a credit history.<\/li><li>Someone with a bad credit rating.<\/li><li>Someone who\u2019s just started a new job.<\/li><li>Someone with a low salary.<\/li><\/ul>\n\n\n\n<p>Before we look at who can be a guarantor, let\u2019s look at what does it means to become a guarantor?<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f2851908810\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f2851908810\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/who-can-be-a-guarantor\/#what_it_means_to_be_a_guarantor\" >What It Means to Be a Guarantor?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/who-can-be-a-guarantor\/#who_can_be_a_guarantor\" >Who Can Be a Guarantor?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/who-can-be-a-guarantor\/#if_youre_thinking_of_being_a_guarantor\" >If You\u2019re Thinking of Being a Guarantor<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/who-can-be-a-guarantor\/#in_summary\" >In Summary<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"what-it-means-to-be-a-guarantor\"><span class=\"ez-toc-section\" id=\"what_it_means_to_be_a_guarantor\"><\/span><strong>What It Means to Be a Guarantor?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A guarantor is someone who steps in to help someone they know to take out any <a href=\"https:\/\/www.lendingstream.co.uk\/loans\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/www.lendingstream.co.uk\/loans\/\" rel=\"noreferrer noopener\"><strong>type of loan<\/strong><\/a>. By agreeing to be someone\u2019s guarantor, you\u2019re agreeing to make the repayments if the borrower doesn\u2019t.<\/p>\n\n\n\n<p>Once you\u2019ve signed up to be a guarantor on a loan, you\u2019re tied in. If the repayments have started, you can\u2019t change your mind a few months later. This is because the lender would have taken your circumstances into account when they approved the loan. Once the loan is up and running, the guarantor is committed to making sure it gets paid back.<\/p>\n\n\n\n<p>Not all lenders do a <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/hard-credit-check\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/www.lendingstream.co.uk\/blog\/hard-credit-check\/\" rel=\"noreferrer noopener\"><strong>hard credit check<\/strong><\/a> on the guarantor, so the application shouldn\u2019t affect their credit rating. However, if payments aren&#8217;t made and the loan falls into default, this would negatively <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/what-affects-your-credit-score\/\" data-type=\"URL\" data-id=\"https:\/\/www.lendingstream.co.uk\/blog\/what-affects-your-credit-score\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>affect their credit score<\/strong><\/a>.<\/p>\n\n\n\n<p>The guarantor would be seen as having a financial connection with the borrower. This makes a difference if the guarantor wants to borrow any money in the future. Lenders look at any financial connections when approving a loan.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"who-can-be-a-guarantor\"><span class=\"ez-toc-section\" id=\"who_can_be_a_guarantor\"><\/span><strong>Who Can Be a Guarantor?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Anyone you know could be a guarantor for you when you take out a loan. They\u2019re often a family member but they don\u2019t have to be.<\/p>\n\n\n\n<p>Each lender has their own rules about guarantors, but usually the following guidelines apply:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The guarantor should be over the age of 21.<\/li><li>They should have a good credit history.<\/li><li>They would need to have a separate bank account to the borrower. Even if your spouse or partner is the guarantor, you\u2019d still need to have separate bank accounts.<\/li><\/ul>\n\n\n\n<p>The lender would want to know that the guarantor could afford the repayments if the borrower didn&#8217;t pay them. The lender may ask the guarantor to provide proof that they work or they may also want to know about any savings or assets they have.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"if-you-re-thinking-of-being-a-guarantor\"><span class=\"ez-toc-section\" id=\"if_youre_thinking_of_being_a_guarantor\"><\/span><strong>If You\u2019re Thinking of Being a Guarantor<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you\u2019re thinking of being a guarantor make sure you know everything about the loan and the repayments. Read through all the documents so you understand what you\u2019re letting yourself in for.<\/p>\n\n\n\n<p>Guarantor loans are personal loans for people with a low credit rating. As a result, the interest rates are higher than on standard loans. It\u2019s worth comparing different guarantor loans to see who\u2019s offering the best terms.<\/p>\n\n\n\n<p>Check with the borrower that they can afford the repayments and that their financial situation isn\u2019t about to change. You need to trust that they&#8217;ll pay back the loan.<\/p>\n\n\n\n<p>If the borrower is unable to pay the <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-pay-off-a-loan-early\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-pay-off-a-loan-early\/\" rel=\"noreferrer noopener\"><strong>loan repayments<\/strong><\/a>, be prepared to pay them yourself. Even if your circumstances change and you can&#8217;t afford the repayments, as the guarantor you&#8217;ll still be liable. You could put some money aside just in case the borrower can&#8217;t pay the loan back.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"in-summary\"><span class=\"ez-toc-section\" id=\"in_summary\"><\/span><strong>In Summary<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Both the borrower and the guarantor should understand what they\u2019re taking on with a guarantor loan. If you\u2019re the borrower trying to improve your credit score , this may be a good solution for you. But if you stop paying, will this affect the relationship between you and the guarantor? Both of you need to be open and honest with each other from the start. Think carefully before committing to it.<\/p>\n\n\n\n<p><strong>Disclaimer:<\/strong> Please note, we are not providing financial advice. Our blogs are written for informational purposes only.<\/p>\n\n\n\n<p><a id=\"_msocom_1\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Are you unsure about what\u2019s involved with a guarantor loan? If someone can\u2019t take out a loan because of their credit history, a guarantor can help them get one. The type of people who might need a guarantor are: A young person who doesn\u2019t have much of a credit history. Someone with a bad credit [&hellip;]<\/p>\n","protected":false},"author":48,"featured_media":26540,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[267],"tags":[],"class_list":["post-26538","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loans"],"_links":{"self":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26538"}],"collection":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/users\/48"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=26538"}],"version-history":[{"count":4,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26538\/revisions"}],"predecessor-version":[{"id":26592,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26538\/revisions\/26592"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media\/26540"}],"wp:attachment":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=26538"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=26538"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=26538"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}