Guarentor loans

bargainbetty

Brains64 wrote: »

Perhaps this is why this idea of Amigo's actually works, because let's face it, anyone who would be willing to be a guarantor must be absolutely confident that the person they are doing it for won't default because it'll be their head on the block,

Have a read of the thousands of threads relating to people who have taken out guarantor loans and then stopped paying, leaving the guarantor up that famous creek. Relationship breakdowns, failed repayments, sob stories on change of circumstances etc.

How do the loan companies know who needs a guarantor? By checking their credit rating. How do they accept the guarantor? By checking the guarantor's credit rating.

Don't think for a second that this harkens back to old-fashioned times! This is a calculated marketing ploy that tries to imply it's a warm and fuzzy thing to help out a mate by co-signing for them. It's not. A real mate wouldn't bloody ask you to do it.

tlh858

Guarantor loans are simply a way for dubious finance companies to charge gullible people far more interest than they should be paying.

In all instances, the guarantor could get the same value loan themselves for a fraction of the interest rate, then just give the money to the person who wants it.

Chrissie72

Loan companies are going to continue to systematically ruin peoples lives... Why the hell are they allowed to charge such extortionate rates?

dealer_wins

Chrissie72 wrote: »

Loan companies are going to continue to systematically ruin peoples lives... Why the hell are they allowed to charge such extortionate rates?

Until it becomes compulsory to take out a loan, companies should be free to set whatever rate they want, and customers should be free to accept or decline their offer.

Chrissie72

dealer_wins wrote: »

Until it becomes compulsory to take out a loan, companies should be free to set whatever rate they want, and customers should be free to accept or decline their offer.

But they are preying on the vulnerable. And I re-iterate, these kind of loan companies are ruining lives. There is no reason for them to charge such high rates, other than to rip off vulnerable and desperate people. Loan sharks, that is all they are.

dealer_wins

Chrissie72 wrote: »

But they are preying on the vulnerable. And I re-iterate, these kind of loan companies are ruining lives. There is no reason for them to charge such high rates, other than to rip off vulnerable and desperate people. Loan sharks, that is all they are.

People by their greed, stupidity, nativity, addictions ruin their own lives. If it wasnt a payday loan, it would be some other form of financial suicide.

Some people really never learn when to say no.

Chrissie72

I seriously give up. I'm outta here.