Choosing a guarantor can be a bit of a tricky process. This is because you will find that you will not always know many people that fit the criteria. It is good to be aware of the criteria and then you will be able to choose the right person to help you.
Good Credit Record
Your guarantor will need a good credit record and this means that they will be good at handling money have a good income and things like this. There are different factors though that lenders will use when they are considering someone’s credit record. The different lenders will have different criteria and this means that you can never be completely sure as to whether they will be happy with your choice of guarantor. However, if you know someone that seems good at handling their money, then they will be a good choice. Of course, this might be something that people keep very private and so you may have to ask them.
Be Able to Afford Repayments
You will also need to make sure that you pick someone that will be able to afford to cover the cost of the repayments if you are not able to. It is wise to find out how much they will have to pay if they do need to make a payment. You may know whether they will be able to afford this, but it could be a good idea to actually make sure that you let them know as well. This is because only they will know the specific details of their finances. It is wise to tell them to assume they have to pay every month and whether they can afford that. Of course, you will not want them to have to do that and it is probably very unlikely, but it is a good idea to prepare them just in case.
Will be Willing to Help
You will also need to pick someone that is willing to help you. You will need to think about who you think might do that for you. It will need to be someone that you are really close to as they will be happy to help, whereas someone that you are not that close to is far less willing to. It could be more likely for most people that it will be family members that will help them rather than friends. However, each of us is different and you will need to think about who you might ask. It could be good to have a list and move through it, asking different people so that you can hopefully find someone that will be willing. It is a good idea to make sure that they are fully aware of what they are letting themselves in for. It can also be wise to discuss with them what will happen if they do have to make a repayment for you. Come to an agreement with them with regards to whether you will need to repay them or not and if so when they want you to do it. The reason for this being so important is that you and them may have different expectations. It could mean that you will expect that you do not have to repay them, but they might expect you repay as soon as you can. Therefore, it is a good idea to make sure that you have an agreement about this before you take out the loan. Even if dealing with payday loans in the UK. It can even be good to have something in writing and then you will not be able to have a disagreement with them about it, if they do have to make a repayment on your behalf.