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When someone you know is in need of a loan, but their credit score is bad, there is a way you can help them out. They may have asked you to become a guarantor for their TFS loan. What does this mean for you? Well, it means you’re helping them borrow money when other banks and lenders will not have approved them – due to their poor credit. There’s a few things you should know about becoming a guarantor for someone. You’ll find out what you’ll need to be a guarantor as well as what the role entails for you.
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 four simple criteria:
*(This does not apply to our Tenant Guarantor Loans)
** (Minimum age of guarantor is 25 on our Tenant Guarantor Loans)
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. This means that the decision to become a guarantor shouldn’t be taken lightly. At the end of the day, your credit score and more could be on the line if the borrower is unable to repay the loan. That’s why it’s essential to only become a guarantor for someone you truly trust to make repayments on the loan.
Whilst the loan will be taken out in the borrower’s name, it can still affect your credit score in the short term and, in cases where the borrower doesn’t pay, in the long term too. That’s why most guarantors are a friend or family member, boss and in some cases a landlord. If you need any information on becoming a guarantor, and the responsibilities you’d be undertaking, please use our Guarantor FAQ section or give us a call on 0203 476 4170. To find out how the application process works, visit our Guarantor Hub page.
Loans are subject to status and affordability. Consolidating debts may increase the term and the total amount payable.
Before entering into any credit agreement please make sure you can afford the monthly repayments, we recommend that you seek independent advice if you are unsure of any of the terms of our agreement. There may be other taxes or costs, not paid through us or charged by us, that you have to pay in connection with the agreement.
Late repayments can cause you serious money problems. For help go to www.moneyadviceservice.org.uk