Who can be a Guarantor and what is the role?
If you have been asked by someone you know to be a Guarantor on their Guarantor loan you may be asking yourself what this entails and whether you fulfil the criteria. At TFS Loans we have created a helpful infographic to guide you through our criteria for Guarantors.
Essentially anyone can be a Guarantor on a TFS Guarantor Loan as long as they fit three simple criteria:
- The Guarantor must be a UK Homeowner – by Homeowner we don’t mean you have to own your home outright, it can be mortgaged. The TFS loan isn’t secured against your home, but we ask our Guarantors to be Homeowners as part of our criteria for acceptance.
- The Guarantor should have a good credit history. We will run a credit check on you, with your permission, as part of the application process. If you aren’t sure about your credit score you can always use one of the many free credit checkers to see your score before you agree to be a Guarantor.
- As the Guarantor you should be able to pay the loan if the Borrower cannot. At TFS Loans we work in partnership with the Borrower and the Guarantor if the Borrower does get into difficulty with payments. It is always our last resort to come to the Guarantor and ask for a monthly repayment or a given amount to be covered, but the Guarantor should be aware of this risk upfront and have the means to pay the loan if the Borrower can’t. Failure to pay could affect the Guarantor’s credit score and access to borrowing in the future.
Being someone’s Guarantor effectively means you are guaranteeing that the loan will be repaid. If it cannot be paid by the Borrower, as Guarantor, you will be expected to pay it.