This has been the common information for the borrowers that credits work as the basic ingredient to get financed from any kind of source. Generally, the lenders pick this attribute as the best mean of measuring the eligibility and security. The credits are the track record representing the previous debt repayment of a particular borrower. So, as a borrower of a loan, you must need to have better credit rating if you consider the general idea!
But, things have changed a lot these days. Today, having less credit is not that much bigger problem for the borrowers as there are a variety of bad credit personal loan are available in the market. The guarantor loan is such a financial aid.
How important is the credit for a guarantor loan:
We can not deny the need of credit in this regard. But, the original borrower may lack the credit rating if the guarantor is a better eligible one. Now a biggest question may arise in your mind about the need of credit for a guarantor. As the original borrower needs to have credit, the common sense goes for the need of better credit rating for the guarantors as well.
Yes, this is true that a guarantor needs to possess a batter credit rating which is needed to be shared with the original borrower while availing a financial solution. But, at the same time this is also true, having a better credit is not the one and only attribute required by the guarantor. Rather the lenders want the guarantor to be the best eligible person who can be trust worthy for getting financed by them.
Then what else the lenders need if the credit is not the basic ingredient? Well, the lenders definitely require credit. But, that does not mean that the guarantor can not be the friend of the original borrower in matters of getting financed if they lack richer credit rating! Rather, the unsecured personal loans lenders would only judge whether the guarantor possess the qualifications to afford the debt repayment or not.
What else lenders need than a better credit rating? :
As a borrower, a question definitely arises in the mind about the other qualifications to become a guarantor. Well, the lenders firstly check the asset status of the person who is being the guarantor. At least that person needs to have a home by himself/herself. Also, the age limit has been also provided by the lenders which require a minimum age of 18 and a maximum age of 72.
The other important attribute goes for the requirement of the proof of steady income. The lenders need to know about the income status of the guarantor. In that is a sufficient, steady income having all the right of documentation, the lender can easily provides approval for being a guarantor of a loan. In fact, if the guarantor can prove himself/herself that he/she is the one capable of repaying the debts in time, there remains no need of credit after all.