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Your guarantor can be any number of people in your life, however, to improve your chances of approval, it’s important to pick someone that lenders will trust.

Having a strong guarantor can increase your chances of approval as it shows to lenders that there’s less risk of default, and a higher chance that the loan will be repaid. Your guarantor cannot be changed once the application has been approved.

When picking a guarantor for your guarantor loan, it’s important to check that they meet certain criteria to increase the chances of success with the application. Some of the main areas to consider when choosing a suitable guarantor include:

• Relation to borrower
• The guarantor’s stability
• Age Restrictions
• Credit score

By ensuring that your guarantor meets the criteria for these main areas, your application stands a bigger chance of success.

Relation to Borrower





A guarantor is usually either a spouse, sibling or other type of family member. They can also be a close friend or a work colleague. You can choose to have your spouse as a guarantor, however this is only if the two of you have separate bank accounts.

It’s crucial that whoever you pick as your guarantor knows the full extent of this role and the responsibilities that come along with it, including what happens when the borrower can no longer keep up with repayments on the loan.

Therefore, having a serious, in-depth discussion with your chosen guarantor is vital before going through the loan application process. This will help to ensure your guarantor is fully aware of their responsibilities in this role, and will make an informed decision as to whether they want to carry on with being your guarantor.


Guarantor’s Stability




Lenders deem a guarantor to be more trustworthy when they have a stable income, as it increases the likelihood they can make the repayments if the borrower defaults. Picking a guarantor that has a stable job, and regular income can therefore play a major part in getting an application approved.

A guarantor might also have to own a house in order to be eligible with certain lenders, although tenants may also be accepted. This helps to further establish the stability of the guarantor, and their ability to handle the responsibility of this role.


Age Restrictions




There are usually age restrictions on who can be a guarantor. Lenders will only typically accept guarantors that are over 21, as those this age and above are more likely to have built up a credit history and thereby have evidence of their financial responsibility and stability.

Some lenders may also have a maximum age limit for guarantors, however, this will vary between lenders, with some having no maximum age limit. When applying for a loan, it may be good to check any age limitations they may have, and make sure that your guarantor meets the criteria.


Credit Score




As with most forms of borrowing, the credit score of your guarantor will also play a part in the success of your application. Having a guarantor with a strong credit score can make lenders feel more assured, as it reflects financial responsibility and credit-worthiness, further suggesting that the loan can still be repaid even if the borrower defaults.

It’s important to choose a guarantor with a strong credit score. Guarantors can find out their credit score through the UK’s three credit referencing agencies (CRAs) – Experian, Equifax and TransUnion.


Who Can’t Be My Guarantor?




There are only certain people that make good guarantors, which is something you should bear in mind when it comes to picking yours. Lenders will only usually accept guarantors who have a strong credit history. Therefore, picking a guarantor with bad credit can drastically reduce your chances of success with an application.

Anyone who does not meet the criteria listed above may be a detriment to your loan application, and can even render an application invalid (e.g. being under the age restrictions).

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