Joint Loan v Guarantor Loan

lolly0117

Hi there

Please could you advise what the difference is between a joint loan and a guarantor loan? Also, does a guarantor loan also mean that you are financially associated with that person?

Thanks so much for your help.

Lolly0117 x

immoral_angeluk

A guarantor doesn't generally have any involvement with the loan until the borrower defaults, whereas a joint loan involves both parties from day one. Both financial link you.
In terms of liability there is little different. The other person would be fully liable for the debt anyway, but as a guarantor they wouldn't be chased until the main borrower couldn't pay.

KingElvis

Only get someone to be a guarantor for you if you really hate them, when you don't pay they will be hunted down like a dog until they cough up what you owe.

I would rather get my nuts caught in the gears of a combine that sign my name on one of those puppies.

Apples2

Joint Loans - Good rates available. Access to higher loan values due to combined incomes.

Typical scenario - Joint loans for brand new BMW for him. He runs off with young Mary Jane Rottencrotch from Accounting and stops repaying.

She joins MSE complaining the bank are chasing her for all payments on this loan she didn't benefit from.
MSE reply, sorry, you are both liable for the WHOLE amount, they are going after the easiest target.

Guarantor Loans - Ridiculously high interest rates. Loan paid into the Guarantors account, guarantor transfers it to the applicant (just to ensure the guarantor knows full well what is happening).

Typical scenario - After two payments the applicant stops repaying. Lenders goes straight into the guarantors account and cleans it out.

Guarantor joins MSE complaining they had no right to do that, they have left me without money for food, this is Illegal.
MSE reply, sorry, you are liable for the whole amount in accordance with the agreement you signed, they are going after the easiest target.

In both cases, finaincial association - credit files smashed if payments falter.

Conclusion - Both are not a good idea. If you want it, save up for it yourself or accept you may have to pay even though you didn't spend it.

Read this thread
https://forums.moneysavingexpert.com/discussion/3781015

KingElvis

Apples, you should write a book or something?

"All you needed to know about financial shysterism but were scared to ask"

lolly0117

Thank you for your help.

To Apples2 and King Elvis, I simply asked a question that required a clear and concise answer, not sarcastic smug answers! They aren't witty, intelligent or needed.

People come onto this forum for practical advise or answers to questions and these should be provided in a clear, concise and respectful manner, instead of being hammered by judgemental people like you and yes, I have seen other posts that you responded to and some responses are downright nasty.

Have a little concern for people who look for answers and advice, after all, would you speak to them that way if they stood in front of you!

Have a great day!

Lolly xx

Jess23x

I don't think a guarantor loan financially ties you. I had one around 2 years ago with my partner and still to this day we have no fiancial link and I regularly check my credit reports

Apples2

lolly0117 wrote: »

would you speak to them that way if they stood in front of you!

Yes, I think it is safe to assume you are the one who cannot get a loan by yourself so are looking for options of dragging others into your mess.
If it were the other way round, you'd be breathing a sigh of relief undestanding what was going to happen.

EDIT: Ah, I was correct, multiple Welcome Loans and multiple ppi claims going on.

limitation

lolly0117 wrote: »

Hi there

Please could you advise what the difference is between a joint loan and a guarantor loan? Also, does a guarantor loan also mean that you are financially associated with that person?

Thanks so much for your help.

Lolly0117 x

Guarantor, Is someone with no direct involvement where the credit is concerned unless the debtor defaults on a payment, They basically are collateral on the finance until its paid off. Think of it as added security for the lender should the debtor go into arrears or default. I don't think the loan will show on the guarantors credit file unless a payment is missed or defaulted on.

A joint loan or financial product is when 2 parties benefit from the credit in question, And account conduct is reported to both person's credit files. You are indeed financially associated with the person in question.

KingElvis

lolly0117 wrote: »

Thank you for your help.

To Apples2 and King Elvis, I simply asked a question that required a clear and concise answer, not sarcastic smug answers! They aren't witty, intelligent or needed.

People come onto this forum for practical advise or answers to questions and these should be provided in a clear, concise and respectful manner, instead of being hammered by judgemental people like you and yes, I have seen other posts that you responded to and some responses are downright nasty.

Have a little concern for people who look for answers and advice, after all, would you speak to them that way if they stood in front of you!

Have a great day!

Lolly xx

Thanks Lolly, I will take that under advisement, when I get my head replaced by a cabbage

And yes, I would (and do) speak that way if people are in front of me and couldn't give a dead rat's butt what they think, say or do....just the way I'm cut out I guess.

DCFC79

lolly0117 wrote: »

Thank you for your help.

To Apples2 and King Elvis, I simply asked a question that required a clear and concise answer, not sarcastic smug answers! They aren't witty, intelligent or needed.

People come onto this forum for practical advise or answers to questions and these should be provided in a clear, concise and respectful manner, instead of being hammered by judgemental people like you and yes, I have seen other posts that you responded to and some responses are downright nasty.

Have a little concern for people who look for answers and advice, after all, would you speak to them that way if they stood in front of you!

Have a great day!

Lolly xx

What on earth was wrong with apples post,