Become a guarantor like Bob...



Register to be a guarantor today

If you have a unique code to become a guarantor, you can enter it below.

To understand more about what is involved in becoming a guarantor, please read all of this web page before continuing.

Remember, to become a guarantor you must...

 []Be a UK resident  []Have a good credit rating   []Be aged 18 to 74 years

 


What does being a guarantor mean?

A guarantor is someone who will make payments on a loan if the borrower fails to pay.

Never having any credit before means the borrower may have no history, so credit reference agencies will score them low as they are not sure if they will repay the loan or not. If people have failed to repay loans in the past, credit reference agencies will score them low, making it nearly impossible to get credit.

That's where the guarantor comes in. The guarantor will know the customer and know if they are likely to make the loan payments or not. No one is going to be a guarantor if they think the borrower is not going to make payments, which is why most of our borrowers guarantors are close family and friends.

 

Can I be a guarantor?

To meet our guarantor criteria, you need to.....

  • Have a good credit history
  • Be a resident in the UK, tenant or a homeowner
  • Be aged from 18 and no older than 75 when the loan completes
  • Can afford to make payments if the borrower fails to pay

If your not sure the borrower is going to make repayments or you don't know the borrower well enough, DO NOT be a guarantor on their loan.

Check out our handy decision tree to help you decide if being a guarantor is right for you.

 

Why should I be a guarantor?

There are many reasons why you would be a guarantor, here are a few...

  1. A friend or family member needs help to get a loan
  2. You want to help your friend or family member to start to build/re-build their credit score
  3. You want to help out a friend or family member, but you don't have the funds to do it yourself

 

Do you credit check guarantors?

We do perform a credit check, this is classed as a soft check and only you will be able to see this on your credit file, it will not affect your score.

 

Where do I sign the guarantor contract?

After the borrower reads through and signs their contract they will receive an e-mail and SMS with a link to your contract. They will send this to you by text message or email.

1. Read the Pre-credit information carefully this is everything about the loan, then tick the boxes to state you have read it.

2. Now Read through the guarantor contract and if your happy, electronically sign it by typing your full name in the box at the bottom. This is the same as signing in ink with a pen.

3. If all goes through without a hitch you can then like our facebook page or follow us on twitter.

4. Finally we go through a quick verbal agreement to make sure you can afford to make repayments if the borrower ever fails to do so.

 

Paying out the loan

Once we have performed all our checks, made sure you and the customer understand your obligations and you can both afford repayments on the loan if required, we will then pay out the loan into your bank account. This is to protect you from fraud and allows you more time to think about being a guarantor before you transfer the funds over to the customer.

 

What if the borrower misses a payment?

If the borrower fails to make a monthly repayment we send you and the customer a text and email alert. This is to let you know what's going on as soon as we know about it. We will then attempt to contact the customer first to see what has gone wrong. If we fail to contact the customer we will try to take the payment from their debit card, if that fails we will continue to try and contact the customer. After five working days we will then use the CPA to clear the arrears with your debit card. If both cards fail, a late payment fee may be added and a letter sent to the customer. As guarantor you will receive a copy.

Once you are aware of the customer not making a payment we would recommend you contact them to see what has happened and contact our team as soon as you can. If you are aware of the customer having issues you can log in and make a payment online to clear the arrears yourself before a late fee is added or the loan goes into default.

If the loan goes into default we will notify you and the customer allowing you 14 days to clear the arrears. On the 15th day of us sending you a default notice we will use the CPA to clear the arrears with your debit card or enforce the guarantee provided.

Once payment has been received by card we notify you by email and text SMS.

 

I need more information?

Call the team: 0330 1200 313**

You can email: guarantors@1plus1loans.co.uk

twitter: @1plus1loans

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