Why do I need a Guarantor for a loan?
One of the most commonly asked questions is always why do I need a Guarantor to get a loan? The answer is simple, right now there are thousands of people just like you who do not have a good credit rating. This is at the exact same time that the high street lenders; banks and building societies have shut down their lending to anyone who has a slightly less than perfect credit rating. The options for your average Joe are looking bleak, if you need credit and are not already a home owner and have other valuable assets you are going to struggle to get it. This is why guarantor loans fit you. Getting the guarantor agreement is actually a lot easier than you may think, be calm collected collate all the information you think your family member or friend will need and construct a convincing argument to get their agreement. Above all else be honest to yourself and the prospective guarantor. Be prepared for any question or query that can be asked. There are several simple criteria that must be met so do your research and have all the answers for the questions before you ask anyone.
You have a bad credit rating, your family may be home owners
As with most things in life there are haves and have nots and if you happen to be on the up but are a have not you are almost certainly going to know someone who is a have and owns their own house. Quite often this maybe a family member or a close friend who know your life is going well and that you are able to make modest payments regularly. Let's face it, they're going to trust you more than a faceless bank run by money grabbing, bonus taking turds will, your friends and family care about you, the people in the banks only care about their bonuses. So you can turn to them, they are of course unlikely to have the £3000 pounds lying around that you need but they can back your loan application by saying something like: "While the banks may not trust this person, I know them and do trust them, so I assure you the lender that you will be paid back in full".
How to find a Guarantor
Obviously finding a guarantor for your loan application is not always the easiest thing in the world but remember these key things and do not give up easily:
- family will always try and help you
- friends will always try and help you
- people are on the whole good, and if you are good to them they will be good to you
Before you approach anyone write down all your finances, how you will be making payments and when, how you will be able to afford it, and your contingency plan should anything go wrong. You can usually do this online with the free Google Apps and if you do not have access to a computer you can visit your local library and do it on their free access computers. If none of this is a possibility you can always write it all down on a piece of paper. Make sure all the facts and figures are accurate and instantly understandable. If you need help it may be worth asking your accounts department at work, they are usually more than happy to help their fellow employees with these sorts of things.
It often helps to take your guarantor form with you to these discussions so you can get the ball rolling quickly when you reach an agreement and to show the guarantor there is nothing to worry about and you are dealing with a professional organisation.
