Can being a guarantor affect your credit rating?
When first applying to be a guarantor, this typically does not affect your credit file as lenders do a ‘soft search’ to check your eligibility
- If loan repayments are missed, this will affect your credit file and potentially your future ability to get credit.
- Most lenders are reasonable and will give you the opportunity to make a payment if the borrower defaults, though you do need to be aware of this.
- For more info see our Guide to credit score improvement.
During the loan application process, you will be credit searched so
It’s suggested the borrower does not make multiple loan applications with you as guarantor, this does not look good on your credit file.
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