Being a guarantor

adriangarard

For information mainly though I had been considering going for a Santander 123 card to get the interest free shopping deal. I already have a regular Santander card and did by the way contact them to ask if I should close that before applying for new card but there response was not of any help.
I digress though. The point was I was asked by a close friend to be a guarantor as they were last year attempting to borrow some money for christmas shopping. They tried with 2 companies. Can't just recall the first but then they tried Amigo loans. Well, I signed up to Noddle a short while ago and yes, I have a record of Amigo loans searching my file. Afraid that might impact on a credit card application now!

CKhalvashi

They can ee a loan search, but not by who

Don't worry

kirstybum

I would say please don't be a guarantor for your friend, in my experience there's a reason that they can't get credit. I got a phone contract for my friend and she promised to pay, etc, paid nothing and I'm left with a default for six years

JJ_Egan

Being a guarantor means exactly what it says .
They dont pay then you pay .

National_Debtline

I've spoken to a lot of clients who agreed to be a guarantor for a friend or relative in good faith and have ended up with the debt burden themselves when the person couldn't afford to pay.

It can not only mean you end up with the debt but it can also affect your relationship with that person, so think very carefully about whether it's really worth it.


James
@natdebtline

Nasqueron

If someone needs a guarantor then, no matter their personal situation now or their best intentions, they are a risk and cannot get mainstream credit as they've likely missed payments, defaulted etc

If you act as a guarantor (too late now I appreciate) then you will need to make financial allowance for the monthly repayments of your friend's bills on the assumption they will not pay.

I understand Christmas pull and wanting to give your best for your family but if you cannot afford Christmas, don't get in debt for one day of the year, go to pound shops or budget supermarkets - friends of the debtor (i..e you in this case) may never forgive them for adding a monthly bill to their own outgoings to cover the lack of payment from the borrower

PaulW922

Amigo will want to know that you are good for the money should they need to call on the guarantee, hence the credit check.

DCFC79

adriangarard wrote: »

For information mainly though I had been considering going for a Santander 123 card to get the interest free shopping deal. I already have a regular Santander card and did by the way contact them to ask if I should close that before applying for new card but there response was not of any help.
I digress though. The point was I was asked by a close friend to be a guarantor as they were last year attempting to borrow some money for christmas shopping. They tried with 2 companies. Can't just recall the first but then they tried Amigo loans. Well, I signed up to Noddle a short while ago and yes, I have a record of Amigo loans searching my file. Afraid that might impact on a credit card application now!

I take it your aware of what being a guarantor entails, you will end up paying up once the friend stops paying. I hope she doesn't stop paying though.

Shouldn't take a loan out for shopping at Xmas.

matttye

Why would anyone be a guarantor, it would surely make more sense to help someone out by applying for a (hopefully low rate) loan in your own name and then lending them the money rather than paying extortionate guarantor loan rates.

Difference is that when your friend stops paying the loan which inevitably happens in a lot of cases, you'll be paying back the debt at the low rate.

forgotmyname

It's not just the fact that they dont pay then you do, You going to be paying the loan at a higher interest rate than you could have got one for in the first place.

You may as well get the loan for them and give them the money, crossing your fingers they pay you back. If they don't at least your paying less interest.

adriangarard

Thanks everyone for your replies. Some valid points there though in the end I wasn't required to be the guarantor. Not sure what arrangements the person made instead so the only negative is the search record on my file.
I'm not finding this forum too user friendly. I wiould have expected to get an email alert if someone replied to my post or at the very least to see some kind of flag when I log into the forum. Unless I am using it wrong it seems I only know I have replies when I view my posts and it seems somewhat cumbersome navigating through the site to display my previous posts. Took me quite a few minutes just now trying to remember how to get here!!!