What is a guarantor loan?
Unsecured credit that requires the borrower to find someone to guarantee their application 🧑🤝🧑
- Typically, a family member or friend (with a good credit rating and regular income).
- A type of loan that helps people with a bad credit rating access affordable finance.
- The borrower and guarantor both sign the credit agreement.
- If the borrower defaults on their repayments, the guarantor has to make the monthly payments.