What Does it Mean to be a Guarantor for a Guarantor Loan?
In this blog we will be looking at what it means if you are asked to be someone’s guarantor for a George Banco guarantor†loan application.
It would probably be a good idea to start with: why you are you dealing with George Banco?
We specialise in helping people with a low or bad credit rating, to access sums of money ranging from £1,000 to £7,500 within a short amount of time, often with a same day pay out. People that apply for a loan with George Banco may have neglected their personal finances in an earlier part of their life and have since understood the mistake they made and are †now looking to do things the right way to improve their long terms credit status. †Equally, other applicants have simply never had a credit card or bank account of their own so they haven’t had the opportunity to create a credit history, resulting in the situation that the larger financial institutions don’t have enough history to work with in order to understand what credit can be given. Either way, the individual ends up being turned down for a loan through the mainstream lenders. That’s where a George Banco Guarantor Loan becomes an option.
Should you agree to be a guarantor for this applicant?
The only person who can answer that question is you and that decision has to be based on trust. However, the question you really need to ask yourself is, would you lend that person the money directly if you had it? Or would you apply for a loan yourself on their behalf?
Even if you had the money to lend them directly, in many cases the borrower would still have the issue of having a low credit rating to face in the future so although the immediate issue would have been resolved, this would still not help them to be becoming financially independent by building a credit score of their own.
The next question to ask yourself is do you trust them to make the repayments on time?
If the applicant starts making late payments, it may negatively affect your credit rating. You may even face the situation whereby the applicant simply cannot make an upcoming payment, leaving you to make the payment for them. Of course no-one expects this to happen but that’s why trust is such a key factor when considering being a guarantor.
How long will you be responsible for this agreement?
You will be responsible for this agreement for the length of the loan repayment period. With this in mind and the knowledge that typical loans can last for two or three years, you have to consider whether the person you acting as guarantor for will still be as trusted to you in that length of time. It’s worth mentioning at this point that with a George Banco guarantor loan, if the applicant is successful and makes all the repayments in the first two years, they can be eligible to take sole responsibility of the final loan repayments in the final year, releasing you from the agreement earlier than initially agreed.
Why is George Banco the right lender to be working with?
We have successfully helped thousands of people who had been turned down by everyone else they had tried, but don’t take our word for it. Many of our customers have left reviews of their experience like the following from Shaun –
Olly (Assistant ) gave second to none customer service… What a pleasure to deal with. Emma (Underwriter) rang me and asked me questions in relation to my credit file with the utmost consideration and empathy to previous circumstance.†I Thank George Banco and the amazing team there for giving me a chance when nobody… and I MEAN NOBODY!! else would. Wonderful company I wish them all the success as a business and the staff in their careers for their help and support, I will always come back to GB in the future if required.†GREAT!!!!
Read more of the great feedback we have received on the independent review website Trustpilot and make up your own mind.
We hope this has given you a little more insight into what it means to be a guarantor when dealing with George Banco.
If you have any further loan related questions at all, please do not hesitate to get in touch and we will be more than happy to help answer them for you.