Money and Loans
A guarantor loan is a way that someone with a poor credit rating will be able to still borrow money. It works by you nominating a guarantor that does have a good credit rating who will be able to cover any repayments that you cannot. This will mean that the lender is not taking such a risk. The fact that the borrower does have a poor credit rating does mean that the loan can be dearer than others but it does open up an opportunity that would not normally be available to a borrower with a poor credit rating
Choosing a guarantor is a big decision. You will need to choose someone that knows you well and would not mind helping you out like this. You will also need to pick someone that has a good credit rating. Some people will not know anyone who will be able to help them out like this and normally it would only be family members that would be willing to help out on this sort of scale. Many people would probably think of asking their parents. This is because parents tend to have more money and it is the sort of t