The guarantor can be a salvation in a situation when the borrower cannot boast of an impeccable history of BIK, as well as good creditworthiness. In such a situation, the loan company will request additional security for the financial liability. This is where the guarantor comes in, who, having high creditworthiness, can affect the fact that we get a loan. However, are loans with a resident profitable? What do we need to remember?
Who can become a resident?
Anyone can become the guarantor of our loan. It can be someone from a family or a group of loved ones, or a completely stranger who would like to devour our loan. A resident must, however, have high creditworthiness and have the capacity to perform legal acts. Many loan companies also expect the guarantor to document their monthly income. Therefore, the requirements are quite restrictive.
This, of course, is not surprising. Loans with a resident are often given to people with a negative credit history. At this time, the guarantor becomes the only collateral for the borrowed funds. This means that a resident must more often demonstrate better creditworthiness than a private individual applying for a loan.
What obligations does the guarantor have?
After positively verifying your creditworthiness, the time comes to sign the contract. By signing, the guarantor undertakes to take over all debts of the borrower in a situation where he has problems paying off the obligation. In other words, serious consequences in the event of any problems will strike the girder with full force. His property will be at risk and will be the basis for initiating debt recovery proceedings. In such a situation, the credit score of the BIK will also decrease.
Can the guarantor protect himself against the necessity of paying off his debts? Only within certain limits. The loan agreement may include a clause that the resident secures a predetermined part of the liability. The surety can also be temporary. For example, in the case of a loan for a year, the guarantor may undertake to raise this amount only for a period of several months. However, such provisions affect the maximum amount that the borrower can apply for.
Are Loans The Best Choice?
Given the more formalities necessary, we may also consider other options. Our poor creditworthiness often does not definitively limit the chances of getting a loan. To this end, it is worth checking the offers of non-bank companies in the area of loans without guarantees. Perhaps the company will offer us a slightly smaller amount, but thanks to this, we will gain comfort and we will not have to decide to devour the loan.
We should also remember that many non-banking companies often only require a certificate of earnings. However, it omits detailed checking of the history in the databases. In many situations, it will not be necessary to get a loan from a resident.