If you’re a guarantor, you agree to repay the loan if the borrower doesn’t.
This means you may have to pay any missed payments and keep paying until the loan is fully repaid. It could also lead to extra charges, legal action, and harm to your credit score.
Most guarantors are close friends or family members (not spouses or partners) who trust the borrower to repay the loan.
Being a guarantor has risks. If the borrower doesn’t pay, you will have to cover the payments and future repayments until the loan is fully repaid.
To be a guarantor, you need to:
As a guarantor, you’re agreeing to step in if the borrower can’t repay. This means you could be required to cover missed payments and any remaining balance. If you’re not sure the borrower will pay, or if you don’t know them well, it’s best not to be their guarantor.
If you are a guarantor, you can help a friend or family member get a loan to:
Before you decide, its important to know that you are required to pay back the loan if the borrower doesn’t. This means you might have to pay any missed payments and future payments until the loan is fully paid. This could affect your credit score, and if the loan isn’t paid, you might have to pay late payment fees and face legal action.
When the borrower has read and signed their contract, they will get an email and text with a link to your contract as the guarantor. You will receive this link by text or email.
When we finish our checks and have made sure you and the borrower understand your roles and can afford the payments, we will send the loan money straight to your bank account.
This keeps you safe from fraud and gives you time to feel comfortable as a guarantor before passing the money to the borrower.