Questions To Ask Yourself Before You Become a Guarantor
Being a Guarantor on a TFS Guarantor Loan means you are helping someone with a poor credit score or no credit history, to access borrowing that they may not be able to obtain elsewhere. There are a number of questions you should ask yourself before you agree to be someone’s Guarantor. We have outlined these below:
Q1: Why do they need a Guarantor and a Guarantor Loan?
If you aren’t sure that they do and they haven’t explored other forms of lending, you should advise them to look at all their lending options before they decide they need a Guarantor Loan. If they have a poor credit score or no credit history and have explored other options, but have settled on a Guarantor Loan, then ask yourself the next question….
Q2: What will they use a TFS Guarantor Loan for?
If they need the money for something immediate, go to the next question. If they can afford to wait they could look at savings options.
Q3: Can you trust them to pay the loan back, on time, every month?
If the answer is Yes, they are a trusted friend/family member and very reliable, go to the next question. If the answer to this is No, you should not agree to be someone’s Guarantor. If they don’t pay the loan you will be responsible for paying it on their behalf.
Q4: Do you have a lump sum you can lend them?
If the answer to this is yes, you should consider lending them the money from your savings, providing you are happy to collect monthly payments from them. If you do not have a lump sum available or are not happy to collect monthly payment, go to the next question…..
Q5: Could you pay back their loan in the event of them not paying?
If you have available funds and would be willing to pay the debt if needed, go to the next question. If you cannot cover the loan amount do not agree to be a Guarantor as you will be responsible for the debt if they do not pay.
Q6: Do you want to help them to build up their credit score to make borrowing easier for them in the future?
Yes – a Guarantor Loan would be a good option. Even if you aren’t concerned about their future lending ability it is still worth considering a Guarantor Loan.
If you have any other questions before you decide to be a Guarantor for a TFS Guarantor Loan visit Frequently Asked Questions for Guarantors on our website.
Please feel free to call us if you wish to discuss anything – 0203 476 6438.
We offer Guarantor Loans from £1,000 to £15,000, over 1 to 5 years.
Representative APR is 39.9%