What does being guarantor entail?

athensgeorgia

My friend asked me this morning if i would be a guarantor for her loan, i know shes had problems in the past with getting finance her dh is self employed and shes been trying to get a loan for a couple of months and someone has offered her one but she needs a guarantor for this, someone with their own house and a good credit rating. TBH i'm not sure why shes asked me i do have my own house (with mortage) and sort of repairing my credit rating with 2 cc's and an overdraft, so yes i have had products but i wouldn't say they were for a good credit rating.

Can anyone tell me if its wise to do this for my friend i do trust her, but i don't want to be credit checked at all and i don't want to have to pay this if anything does happen to them is that what a guarantor does?

Any advice much appreciated

FROSTYFRECKLE

Hi,

Please do not mix friendship and money - seriously bad idea. Being a guarantor means if your friend defaults the loan company will be expecting you to make repayment. Also, if your credit rating is a bit shaky the loan company may not accept you as guarantor. I believe the loan company will credit check you, they will want to know if you can afford repayments if your friend defaults.

HeadInSand_2

"What does being guarantor entail?"
1) Bending over (without lube) if she defaults.
2) Losing said friend.
3) Ruing the day you did it.
4) Paying back the loan.

jonesMUFCforever

5) Paying back loan includes all charges and interest that may accrue in arrears.

sportage1kia

Hi there
Sorry being a guarantor is very very risky especially if you value your friendship
Wish you luck anyway
Regards

iolanthe07

My uncle lost £14k as guarantor for my b-i-l. Just don't do it. You will be absolutely liable if she defaults and of course you will be credit checked.

wishiwasarichgirl

don't do it. A guarantor has to pay back the loan if she doesn't.

If you don't just want to give a flat "no" just tell her your credit rating is not good at the minute.

ekkygirl

No dont do it. If she defaults the finance company will chase you, by which time you and her will have fallen out because she is not paying for a loan that you are guarantor for. I would only be a guarantor for a loan I would not mind paying back i.e for my kids or my parents, maybe my siblings

CHR15

Its the same as you taking out the loan on your own, but giving all the money to your friend, but she promises to pay you back every month.

If she fails to pay, you will have to.

for the love of all that is Holy, say NO!!