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Standing Guarantor?

Discussion in 'Personal' started by Mullam, Dec 4, 2015.

  1. Mullam

    Mullam Occasional commenter

    Would you stand as a guarantor for someone else's loan, eg, an Amigo loan?
    If so, why?
    If not, why not?
     
  2. Eureka!

    Eureka! Lead commenter

    I wouldn't. It would make more sense to loan the person the money myself at a low interest rate. The risk is the same but the other person is not lining the pockets of a money lender!
     
  3. Duke of York

    Duke of York Star commenter

    I would be inclined to agree with Eureka in the case of a loan to help someone out of a problem with the exception that interest wouldn't be involved. I would need to know that my money would solve the problem and not be spent on something that wasn't really required.

    If my guarantee helped someone have a roof over their head, someone with a poor credit score, for example, so long as I felt confident they would pay their rent and the risk was minimal, i.e. no more than the standard six months tenancy agreement, it wouldn't be a great hardship to cover.

    I know from experience though that letting agents will attempt to try and make guarantors responsible for subsequent tenancy agreements and there I would draw the line. A tenant who has paid his dues on time, deserves to be treated as a good tenant and be given the respect he deserves.

    At that point the risk has been shown to be lower than the credit score initially indicated and it's time for the landlord to accept the risk himself, if there ever was one.
     
    colpee, midnight_angel and ScotSEN like this.
  4. Mullam

    Mullam Occasional commenter

    I was just watching one of those 'Can't pay?' programmes and in the latest one some obnoxious girl tells the parents the debt is theirs, when they acted out of love and support. Disgusting!
     
  5. FrankWolley

    FrankWolley Star commenter

    No.


    Next question?
     
  6. foxtail3

    foxtail3 Star commenter

    I have 'loaned' money to family members, with no expectation of having it repaid.

    I wouldn't loan a substantial sum to anyone else and couldn't anyway these days. I wouldn't stand guarantor either because I wouldn't be in a position to repay if the person defaulted on it.
     
    FrankWolley likes this.
  7. FrankWolley

    FrankWolley Star commenter

     

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