How to Approach and Ask Someone to Be a Guarantor

 If you are considering taking out a guarantor loan, one of the major components of that loan I to have a guarantor, someone to guarantee the loan for you.

 

If you are considering taking out a guarantor loan, one of the major components of that loan I to have a guarantor, someone to guarantee the loan for you.

The other major component of a guarantor loan is affordability, you must show you can afford to repay the loan.

In choosing someone to be a guarantor, you just need to look at your friends and family, and decide who you wish to approach and ask to be your guarantor.

Finding a guarantor may not be so difficult, but how do you approach that person to ask and explain to them you are seeking a guarantor for a loan.

In doing this, there are a few things to keep in mind:

* Asking someone to guarantee a loan involves yours and there’s finances, and credit.

* The person you ask to be a guarantor may have some questions for you, such as why you are seeking out a guarantor.

* You need to make sure the person you ask to be your guarantor understands the full implications of this, and you need to instil confidence in them, which we will explain.

We even have a Guide to Being a Guarantor you may wish them to read.

How to Approach and Ask Someone to Be a Guarantor

Approaching Someone to Be Your Guarantor

You are in need of a loan, and for some reason you may not be approved for the loan just on your own, and so you need someone to be a guarantor.

You know the person you are going to ask for this responsibility, and now you just need to discuss it with them.

Prior to speaking to your future guarantor, you may wish to put pen to paper and jot down a few things, in addition to completing a budget or income and expenditure sheet.

Most lenders are going to have you complete and income and expenditure form in order to see if you can afford to repay the loan, so having this done prior to applying is essential, and will be a part of your loan, in addition, you can show this to your guarantor; showing them you can afford to repay the loan.

You also need to be prepared for the question, “why do you need a guarantor?”.

This is a fair question for someone who is about to guarantee a loan for someone to ask, and you can answer it however you wish.

It may be you have no established credit history, and this is a way for you to get that credit history.

You may have had bad credit in the past, and this loan is a way to re-establish yourself credit wise.

And not that someone who is guaranteeing a loan for you may ask, but having proof, documentation of all your income, may be required by a lender, and if need be, you can show this to your guarantor.

As you can see, being a guarantor, and having someone guarantee a loan for you can be somewhat financially intimate. You are sharing a part of your personal finances together.

In choosing a guarantor, you want to be sure they are not financially linked to you. In addition, the person you choose as your guarantor does not necessarily need to be a homeowner. As long as they have good credit, they do not need to own property.

One way to put approaching someone to be your guarantor is to put yourself in their shoes. How would you feel, and what questions might you have if someone asks you to be their guarantor.

You can then approach your guarantor using that perspective as to know what they may ask you.

How to Approach and Ask Someone to Be a Guarantor

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