Payday loans with a guarantor are one of the forms of securing the repayment of the liability. The guarantee that we will settle them is a guarantee of a third party. Sometimes a guarantee can be provided by a company that works with a lender. We will then have to deal with an institutional guarantor Futher reading at gaoodgle.com
Payday loans with a guarantor – what do they rely on?
Payday loans with a guarantor is a financial liability with additional security. These are just a guarantor for a bank or payday loan institution. Owing to having a guarantor for a payday loan, you can also apply for indebted persons or for a negative credit history. After fulfilling certain conditions, the payday loan with the guarantor will also be available for higher risk customers. This is about people who are unemployed, who have low income or who have been seized by a bailiff.
If we choose the guarantor alone, he will have to complete several formalities. Usually, we have to indicate it at the time of filling out the application. Questions regarding the guarantor may appear in the payday loan form or constitute a separate document. In a situation where the guarantor was sought alone, he will have to sign a special guarantee contract. Some lenders require that this document be made in the presence of a notary or other signatories. Usually, you will also need a copy of the identity card of the guarantor. Depending on the given lender, it may also be necessary to complete other formalities (eg presentation of a bank account of the guarantor). Only when we have fulfilled all our obligations will the payday loan procedure be launched.
What speaks in favor of payday loans with a guarantor is that thanks to additional security, we can apply for higher amounts than in the case of traditional non-bank payday loans. payday loans with a guarantor bring certain benefits also to their institutions. These bear lower credit risk, because in the case of problems with the repayment from the debtor, they can ask for a lender.
Who can be a survivor?
A citizen is a person who confirms the possibility of paying off a liability by a third party. If the debtor fails to comply with this obligation, the guarantor will be responsible for the lack of payment with all his assets.
Every natural person who meets the conditions set by the lender can guarantee the payday loan. First of all, it must be at a certain age and have a good credit history. Of course, she should know the borrower and be a stable and financially reliable person. You also need a bank account. Sometimes, a potential guarantor is also required to own a property. However, it is worth knowing that a payday loan with a guarantor is not a payday loan secured by real estate. Its possession is proof for the lender that the guarantor has a stable financial situation and that in the case of delays in repayment he will be able to settle the obligation incurred by the borrower.
Who will get the money from the payday loan?
The payday loan with the guarantor goes to the guarantor’s account not to the borrower. The payday loan company wants to protect against fraud in this way. In addition, it is often the only option when the account of a person in need of financial resources has been seized by a bailiff. Remember that the liability of the guarantor for the repayment of the obligation is joint and several. This means that it will be the obligation to return the debt if:
– the person who actually uses the payday loan will stop paying it,
– the borrower will declare consumer bankruptcy.
The death of the borrower also does not release the guarantor from the repayment obligation. What is important, the guarantor is immediately informed about the lack of timely payment. Thanks to this, for example, he can contact the debtor himself and try to persuade him to settle the obligation. The aforementioned obligation results from the fact that, similarly to the debtor, the guarantor is also a party to the contract concluded with the lender. When the guarantor settles the payment for the borrower, he will be able to claim the right to return it in court and then in enforcement proceedings.
The individual requirements as to who may be a giver may vary slightly depending on the particular lender. An additional requirement may be the registered address in the country. It is also good to have personal property, which the guarantor can freely dispose of.
The most important criterion is the financial situation of the person who becomes a guarantor. From the guarantor’s point of view, it is important that a payday loan that has been vouched to someone reduces its creditworthiness exactly as if it were him who enlisted it. You can find detailed information on who can be a survivor in the payday loan agreement or on the lender’s website.
Payday loans with a guarantor – how to receive?
In most cases, the entire process of applying for a payday loan with a guarantor takes place online. Thanks to this we can apply for it without leaving home. As with other non-bank payday loans, we must first choose the amount and period of repayment that interests us. Next, we fill in the form available on the website, also providing the guarantor data. Once we do, the guarantor will receive a link to the application, which will have to be completed. Then, the payday loan company will contact both you and our guarantor. After the positive credit decision has been issued, the payday loan money will be immediately transferred to the guarantor’s account.