No fuss guarantor loans
No fuss guarantor loans
The most annoying thing about applying for any loan or credit is the fuss and bother you have to go through to get the loan. Form filling, telephone questions, referencing, etc. It is a fact of life that loans are not only unexciting but they are also tedious to obtain and let’s face it, we could all be doing better things.
That is why a no fuss guarantor loan is the way to go. A loan that is guaranteed by a friend, relative, neighbour, work colleague. This means that in the event that you are likely to default on your loan payment (ie.not make the payment) then there will be someone standing behind you who will. So that means a guarantor will effectively, ‘guarantee’ your payment even if you decide not because you can’t or won’t.
The guarantor will also have to understand that they will be responsible for the loan and that if payments cannot be made for any reason, either by the applicant or the guarantor, then the guarantor is the one who will have their credit history impaired and will also be the one that will be credit blacklisted. So, forget what you hear about no fuss guarantor loans being safe for everyone involved. For the applicant they almost certainly are, for the guarantor, they are almost certainly not as they still have an obligation and responsibility to make sure the loan is repaid regardless of who is making the payments.
We advise any applicant to understand the consequences of a no fuss guarantor loan. If they do not make a payment then the responsibility falls on the guarantors shoulders. As you can imagine, this will put a strain on even the strongest of friendships or relationships, so our advice is simple;
Do not involve friends or family unless you have made them fully aware of the consequences to them if you fail to repay the loan.
Guarantor loans can be a great way to obtain a oan if you have had credit problems but remember that a loan is a loan is a loan and needs to be paid back.
