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Repaying a guarantor loan is the responsibility of the applicant but is backed up by the guarantor.  Each month the lender will try to take the repayment from the applicant and only failing that will they seek to recover the funds from the guarantor.

If the applicant always makes their payments the guarantor should not need to be bothered at all by the lender.

This is one of the biggest questions when dealing with guarantor loans.  Who do you pick as a guarantor?

A guarantor can usually be anyone, friend, family member, co worker, landlord or anyone else who meets the right criteria for the lender you choose.

So how do you approach the question?  First of all, remember this person is doing you a huge favour, so go into it with that in mind and understand if they say no.  Choose someone who believes in you, someone who knows that you’ll pay back very penny and therefore will never need to bother them for a payment.  If this person trusts you and believes in you hopefully thy will stand as guarantor for you and you can get your guarantor loan.

What do you do if you have bad credit and cannot get a loan, but need to obtain finance.  There are companies out there who claim to be able to find you a loan but instead charge you and then simply recommend the same old lenders you know can’t help you.

Guarantor loans might be the answer, a guarantor loan is a normal loan, in your name, but with the backup of a guarantor.  This is a friend or family member who is willing to back you, to say “yes, he’ll pay the loan back, you can trust him.”

For more information on gurantor loans, and to apply, please visit: www.guarantor-loan.co.uk