What is a guarantor loan?
A guarantor loan is a loan involving the borrower and also a guarantor, who is legally bound to repay the loan if the borrower cannot. They are typically used if, for example, the borrower cannot obtain a loan because they have a poor credit record or no credit history at all, as in the case of a young adult straight out of university/education. Parents often act as guarantors to help out their adult offspring. | 02.08.17 @ 10:45