Have you
ever came across the dilemma of “to be” or “not to be” someone’s guarantor?
None in today’s world wants to take the responsibility of others. Then, how can
you take the responsibility of the person who might not be able to repay the
amount he borrowed? That is when no guarantor loans help people to get loans without the need of getting a
guarantor involved.
Times when being a guarantor can be
risky
There might
be times when the decision of being a guarantor can prove to be a risky choice
for you. To avoid yourself falling into these situations, you must know what
can be the situations that might be entering in your life when you think of
being someone’s guarantor.
Do not let yourself stumble over
unlimited guarantees
Signing the
documents is not what being a guarantor is restricted to. No matter how close
the person is to you, reading the documents is necessary before you finally
decide to be one. There can be guarantees like, unlimited guarantees, that can
put you into a problematic situation.
These
guarantees, as the name suggests, are on an unlimited basis. That is, in case
the borrower increases the amount of the loan in the future for more
requirements coming his/her way. You, as a guarantor, become responsible for
the whole ‘new amount’. To avoid the same, make sure that you read the
documents at an initial stage.
Are you a ‘guarantor’ or a
‘co-borrower’?
Ask yourself
the question and if you do not really know, that is exactly when being a
guarantor can take a risky turn for you. People often confuse the terms
‘guarantor’ and ‘co-borrower’. A guarantor is only responsible at the time
where the borrower is unable to repay his/her loan amount. But, a co-worker is
equally responsible for the repayment of the loan. You must be clear whether
you want to be a co-worker or a guarantor. And if none, loans for bad credit, no guarantor and no fees from direct lender are anyhow there for the borrowers.
Do not get trapped
Family and
friends are someone who stand by your side. When you choose to be a guarantor,
it is mostly for your closed ones. After all, you trust them and you cannot
even say “NO”. Say, your friend asked you to be his guarantor and you trusted
him and did the same. But, what about the time when he surprisingly fails to
pay his loan? Now, you have to repay that amount. The time becomes worse when
you, at the same time, are also going through some kind of financial crisis and
now you have to take the responsibility of someone else’s payments. In such a
case, you can opt for £1000 pound loans
with bad credit and no guarantor.
Arrival of difficult financial
situations
You chose to
be the guarantor to provide help to someone but the inability of repayments
made the tables turn for you. It is hard to get bank loans approved in the UK.
There is a high possibility that in the hurry, some payments might go
unnoticed. That is when another risk of difficult financial situation emerges
for you.
