A guarantor is a person who helps someone else get credit, a loan, or a mortgage. He or she acts as a guarantor, guaranteeing that they will repay the debt of the borrower if they can’t do so.
Who can be a guarantor?
Anyone can be a guarantor. However, a guarantor is someone who is usually close to you. Someone who knows you very well. It is often a parent, sibling, relative, close friend, or spouse. A person should choose to become a guarantor to someone he or she trusts. Furthermore, a guarantor must be of legal age. He or she must have a good credit history and is financially stable.
Why does someone need a guarantor?
There are several reasons why someone will need a guarantor. Here are the reasons:
Should you agree to become a guarantor?
To agree to become a guarantor, you need to consider these things first:
Who can be a guarantor?
Anyone can be a guarantor. However, a guarantor is someone who is usually close to you. Someone who knows you very well. It is often a parent, sibling, relative, close friend, or spouse. A person should choose to become a guarantor to someone he or she trusts. Furthermore, a guarantor must be of legal age. He or she must have a good credit history and is financially stable.
Why does someone need a guarantor?
There are several reasons why someone will need a guarantor. Here are the reasons:
- The borrower has no credit history, such as a young adult.
- They have low income.
- They have a low credit score.
- They have just started a new job.
Should you agree to become a guarantor?
To agree to become a guarantor, you need to consider these things first:
- Why does the borrower need me to become the guarantor?
- Does the borrower have the capability to pay his or her debt?
- Is he or she responsible and trustworthy?
- Does he or she need the loan or is it something he or she could save up for?.
- Can you afford to pay the loan?
- Would covering the loan change your relationship?