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Being asked to be guarantor on a loan?

Pen Rua · 2021-03-23 10:25:57

What are the implications of being asked to be a guarantor of a short term (less than 5 years), small value (less than €3k) loan? I understand it will show on my credit report also. Would it majorly impact ability to get my own loans if I needed to, as well as mortgages? I have neither at the moment.

23-03-2021 11:25am

#1

Pen Rua

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What are the implications of being asked to be a guarantor of a short term (less than 5 years), small value (less than €3k) loan?

I understand it will show on my credit report also.

Would it majorly impact ability to get my own loans if I needed to, as well as mortgages? I have neither at the moment.

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Comments

#2 23-03-2021 10:09pm

Henry Ford III

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It means you become liable for the debt if the borrower defaults.

Be careful.

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#3 23-03-2021 10:13pm

Vestiapx

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Who is asking you to do this? If they are young I'd say fire ahead but over 25 and needs help raising 3k then nope.

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#4 23-03-2021 10:14pm

gogo

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For the purpose of your own future borrowing, it’s considered the same as having a loan yourself, they don’t take into account the repayments but do factor it in as a liability.
As above you are fully liable and if the actual borrower defaults you would be expected to repay in full, not take over the repayments but pay the full balance due via one lump sum.

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