Who can I ask to be my Guarantor?
Most of our customers ask their close family members – a parent, grandparent, aunt, uncle or cousin are the most common types of Guarantors.
You can also ask friends, colleagues at work or even your landlord. You just need to find someone who fits the criteria we have outlined above. Remember that the Guarantor Loan will be in your name but it will be given on the strength of your Guarantor’s ability to pay it back if you cannot, so you need to make sure you ask someone who is in a position to do this.
We can’t accept spouses who are financially linked to you, as your Guarantor. In other words anyone who you have a joint bank account with we cannot accept as your Guarantor.
It is worth drawing up a shortlist of people who could be your Guarantor. Be realistic. If people in your close circle don’t have great credit histories, look further afield.
How do I approach them about being a Guarantor?
When you ask someone to be your Guarantor you need to be prepared to talk about why you need the loan, how you will use it and how you will pay it back. You should have a contingency plan in place if you are unable to pay the loan back, this will help to reassure them.
Let them know that you will keep them up to date with your financial state during the period of the loan. You should also give your prospective Guarantor information about who you are taking the loan out with, as this helps to reassure the Guarantor about the loan company and its intentions.
Where possible, it is a good idea to have a face to face meeting with your Guarantor. You can talk them through the loan and answer any questions they have. If this isn’t possible it’s definitely good to talk it through over the phone.