Sometimes, younger people or those with little to no credit history may be required to name a guarantor in order to secure the finance they require. A natural first port of call in this circumstance may be one’s parents. But do parents make good guarantors? Let’s find out…
Let’s back up just one second. What is a guarantor? A guarantor is essentially someone who promises to make loan or other credit repayments, should the borrower be unable to make them him/herself.
There are, of course, many loans available from lenders who don’t require a guarantor, but often a lender may ask for a borrow to provide a guarantor if they have a poor credit history or no credit history at all. This gives the lender a level of confidence that, even if the borrower can’t make the repayments, they will still be made. Read more about this at the Experian site.
