People search for loans without guarantors all the time but that doesn’t stop people from asking friends and family members to be a loan guarantor. Signing as a loan guarantor is a big asks and there are thousands who are struggling to overcome their fears of being a guarantor. It’s not hard to see why so many people are wary when it comes to being a guarantor as it’s a lot of responsibility. So, should you look at signing as a loan guarantor?
How Much Is the Loan For?
Being a loan guarantor is a great thing because it helps those who cannot get loans without guarantors; however, that doesn’t mean to say there aren’t still risks. When you ask yourself whether or not you should sign as a loan guarantor, you have to firstly think about how much the loan is. For example, are you happy being a guarantor for a loan over a $1000? What about $10,000? You need to understand the loan and how much you are being a guarantor for. This will be very important when it comes to being a guarantor because the amount might be a little more than what you’re prepared for.
How Well Do You Know the Borrower?
You have to take a moment to think just how well you know the borrower. Is the person asking you to be a guarantor a good friend, a family member or just an acquaintance? How well do you know them? You have to ask yourself these things so that you can be sure you’re getting a good deal. Loans without guarantors are ideal because they don’t require a guarantor but, of course, it’s not everyone who’s going to be eligible for them. Being a loan guarantor is a big asks and you really have to know the borrowers well in order to feel as though the risk to you is low.
Do You Feel Comfortable with the Loan?
Are you happy to act as a guarantor? Do you feel it’s best for you and your family to act as a guarantor? These are the things you must think about when it comes to signing as a loan guarantor. Yes, it might seem simple enough but there are risks to deal with. You really have to look at this from all sides so that you can decide if it’s really the most appropriate situation for you. It’s important to understand what loans without guarantors offer as well as what it means to be a guarantor. Guarantors have a lot of responsibility so you have to understand those risks first. more explained in this post: http://www.equityedn.com/guaranteed-guarantor-loans-people-bad-credit/
Be a Signer Only When You Are Sure It’s Not Such a Big Risk for You
Guarantors are useful in a variety of ways and there are many who think it’s not the ideal solution for them as it’s a big risk. In a way, it’s a big risk and certainly a big ask for anyone who requires a guarantor but it doesn’t have to be such a big risk if you think about it. For example, if you are comfortable with the loan and you know the people well enough, it shouldn’t be too much of a problem. Loans without guarantors have their uses and sometimes you might want to consider them too.