November 29, 2019

Loan with guarantor – When is it worth taking?

It often happens that, being in a difficult financial situation, we suddenly need cash. Whether it’s for home renovation or a wedding reception for my daughter. Money can be obtained easily because many online loans are available without leaving your home. People who already have several loans on their account are in a worse situation. And they did not pay them back on time and now they have debt from the bailiff. Where to look for financial support in this case?

A loan with a guarantor will be one of several solutions for people in debt. A loan without BIK can give any person a cash injection that will meet their needs. USD 1,000, USD 4,000 and even USD 15,000. A wide range of offers will find its supporters. But what really is a loan with a guarantor and what makes it stand out from other financial products?

Simply put, a loan with a guarantor is nothing but a loan with a guarantor . Here and here you need a person who will pay the debts if we can’t do it. It is a simple matter, but it is not so easy to find a guarantor who, in the event of our problems, will take over the whole commitment.

Guarantor’s creditworthiness


The guarantor can be a person close to the borrower, but also a colleague, colleague, friends from work, etc. There is no clear definition of what the relationship of the ryrant with the person taking the loan should be. The financial standing of the guarantor is important for financial institutions. If you have a loan with a guarantor, you must have good credit standing. The borrower may have arrears in bikes, and he may also be unemployed seeking a loan. It does not matter what the income is, because in this case only the assets of the guarantor will be taken into account.

At best, it would be best if the surety person had:

  • employment contract of unlimited duration;
  • no arrears in maintenance payments;
  • positive credit history, without negative entries in the databases;
  • no bailiff attachment;
  • more than 21 years old;

These are just examples of the “ideal guarantor”, however, each company has its own system to assess the capacity of the girrant. Therefore, when applying for a loan with a guarantor, we must know that the whole process from the moment of completing the application to the payment of money can take up to several days. The lenders thoroughly scan our giraffes and if they notice something that they think is hindering getting a sued credit decision, the application is rejected.

Guarantor’s tasks

Rather, we will rarely encounter a situation where a stranger will be the guarantor. Hardly anyone wants to risk their money against a stranger. It is also worth knowing that the guarantor has the right to view the repayment status of installments. Also, in the event of no funds being credited to the creditor’s account, the resident is immediately notified of this situation. Therefore, he has full insight into how the loan with the guarantor is repaid and whether there are any problems.

Of course, the guarantor’s main tasks are to pay off the remainder of the debt if it is not paid by the borrower. It is also important that the repayment schedule of the ryrant is the same as on the loan contract. So when you take over the liability, he will have to respond to the repayment deadline, which is on the document.

If the guarantor changes his mind during the loan agreement and wants to resign from his function, the loan company can release him from being a resident only if the borrower lies that he has nothing to repay. At this time, the bank may find another form of security, such as an apartment.

Loan with a guarantor – where to look for it?

Loan with a guarantor - where to look for it?

In our non-credit loan ranking we can find companies that give loans with a guarantor. When we are in a very bad financial condition and we have sudden unexpected expenses, we look for different solutions to raise money. One of them is the sale of an apartment with a loan or we save payday loans for those in debt. All solutions are good but we have to choose the ones that will be the best solution for us. Selling your home requires a lot of formalities, but quick loans no longer. It really depends on how much money we need.

A loan with a guarantor may be the best solution for indebted people in need of money for now, but it requires a lot of formalities, and we can wait many days for decisions. The amounts we can borrow are large, even USD 25,000, and usually the payment is spread over many installments.

written by Rosemary Cummins - Posted in Loan