Guarantor Loans

Soleil_lune

27col wrote: »

Yes! I suspect that that is exactly what they think.
They never stop to think that there is a reason why the borrower needs a guarantor.
The reason is that they have a track record of defaulting on loans..
If the potential borrower were to put themselves in the position of being a potential lender. They would also never lend to someone whose credit record was as bad as their own. But, of course, they would never look that far ahead. All they want is some money to appease some perceived "need", and they want it now.

Sometimes though, it's nothing to with having bad credit; it can be about having NO credit.

I have half a dozen relatives and friends who have young people in their family who have needed a guarantor because they have no credit history. Several have had a prospective landlord who wanted a guarantor, and four people I know have refused; even for their own child.

One of my work colleagues is such a person; she said the reason is that if her son does not pay his rent, or one of his housemates doesn't pay, they will come after her for the money, and she simply doesn't have it.

It's just as well she did refuse as he has not paid the last 2 months rent due to lack of funds. If she had been his guarantor, she would have been chased for the 2 months rent. As it was he didn't have one, and his mates parents who chose to be a guarantor are being hounded for his share.

Many many many people do think that you are simply giving a reference. I cannot believe people think this! You are almost literally signing for a loan, and promising you will pay it back, but someone else is getting the money.

I wonder when people ask someone to be a guarantor, if the company/landlord itself explain to the person what being a guarantor actually is?

Clive_Woody

Pixie5740 wrote: »

I think it's mostly done online these days. Amigo, the very well loan guarantor loan company has this webpage that the guarantor has to go to in order to complete the loan application.

This is a link to the Guarantor page on the Amigo Loan website which guarantors have to go to in order to complete the application. If people can't glean that they have a responsibility to repay the loan when the person being guaranteed stops making the repayments then there's no hope for them.

Liked the bit...

"We believe asking for a guarantor is the best way to lend as your family and friends know you better than a computer ever could. "

Which is BS as friends and family have no experience of lending money and no access to credit histories showing that the borrower has a long history of not paying what they owe. The computer is programmed to manage both of these and is in a far better position to judge risk.

Ciro

I can't believe the stupidity of some people. It's such a shame common sense is so scarce!

I went through the guarantor loan experience a couple of years ago and I checked out three companies. Glo, Amigo and George Banco.

All of them were crystal clear about the facts and were also very clear with my guarantor about what it meant being a guarantor, both on the phone and email.

I eventually went with George Banco who were great btw. They were clear. We understood. It has since been paid off early!

The world is full of people not taking responsibility for their decisions/actions and crying ignorance when things don't go their way. Grow up.

Grrr. Rant over. Sorry!

TadleyBaggie

Two post praising George Banco...clearly you work for them.