Loans with a guarantor – is it worth it?

Getting a high loan is not easy, because the bank scrupulously verifies the creditworthiness of its customers. Some people may have difficulty even getting a non-bank loan if their financial standing is not sufficient. In this case, the solution can be a loan with a guarantor. What is it about and is it worth deciding on such an offer?

Non-bank companies offer their clients various financial products, and one of them is a loan with a giraffe. It provides a form of security in the event that the borrower ceases to meet the repayment schedule.

Usually, such loans are offered to high-risk clients whose unstable financial situation cannot guarantee repayment. If the loan is no longer repaid, this obligation passes to the guarantor and he becomes the debtor towards the non-bank company.

How do you get a loan with a guarantor?

How do you get a loan with a guarantor?

The loan procedure is almost identical to standard loans. Everything is limited to submitting the relevant online application and completing the form. The differences, however, result from the fact that the lender is more interested in the financial situation of the guarantor.

The customer applying for a loan will be required to submit a declaration of income not only his but also the guarantors.

In addition, the company may require the grant to document his earnings, good creditworthiness and favorable history in Credit Checker. In contrast to the mortgage, loans are granted without real estate, which is why the ownership or absence of a flat is not taken into account when assessing the capacity.

Payment of a loan with a guarantor

Payment of a loan with a guarantor

An important issue is that the funds received are transferred to the account of the guarantor, not the borrower. This is to protect against possible fraud and provides additional security for the transaction. Loans with a guarantor are often granted to indebted persons, the unemployed and a bank account seized by a bailiff. Therefore, paying out to a giraffes account is often the only solution for the borrower to receive money.

A loan with a guarantor – is it worth it?

For people in financial difficulties, a loan with a resident is sometimes the only way to get extra money. The advantages of such a solution are that you can apply for larger amounts, even without creditworthiness. An additional benefit is that thanks to the loan you can start building your credit history.

Although financial products have been granted for 18 years, young people are not very reliable customers. By taking out a loan with a guarantor and paying it back regularly, you have the chance to increase your Credit Checker scoring and improve your credit history. This will make it easier for you to access other financial products in the future.