A friend asked you to guarantee a loan? Or maybe you are looking for a guarantor yourself? In every situation, you have to make a difficult decision.
A surety is one of the most common forms of bank securing receivables by far. It is used when taking out mortgages, installment loans, etc. A person with stable employment and financial standing will significantly increase their chances of getting a loan.
Banks and loan companies want to repay their liabilities
And recover capital, it is not important for them whether the installer will pay the debtor or the resident. A good resident can also help us get money when we have a negative credit history or no credit history at all.
A Jew is a colloquial term for a guarantor, i.e. a person who confirms the ability to repay a loan by a third party. In the event that a person taking out a loan or borrowing cannot repay the obligation – this obligation is transferred to the errant.
When agreeing on the existence of a loan, the guarantor should know his rights and obligations. Thanks to this, you can do someone a favor and stay in a comfortable situation.
What is credit keeping?
Loan surety (chewing) is a kind of collateral for repayment of a loan. If you pay someone a loan and the person who took it stops repaying the liability, the bank has the right to demand repayment from you. As a guarantor, you are therefore responsible for paying the debt just as much as the borrower.
A guarantor may be an adult and with creditworthiness. What counts is the form of employment and the income of the potential grant. It is important that the person who borrows the loan has a positive credit history does not have debt collection activities and is not indebted.
The main responsibility of the tyrant is to pay the liability when the original borrower is unable to do so. The guarantor has certain rights in this respect.
- First of all, he may demand from the borrower information on the repayment status of the loan, inter alia, what amount of the loan has already been settled and what is still outstanding;
- The guarantor should also be informed on a regular basis about delays in paying back the payday loan. He should obtain such information from the institution granting the loan/credit;
- If there is a situation in which the resident is forced to pay the debts, he automatically becomes the creditor of the original borrower and may require him to pay that amount.
Can you opt-out of the loan?
Choosing the right guarantor is not a moment. The borrower should choose such a person whom he trusts with reciprocity. The guarantor should also know his rights, obligations, and consequences of such an obligation. A bank that gives the guarantor the character of his role during the loan period also gives a moment to think. Before signing the contract, the bank makes sure that the resident wants to become a loan repayment provider.
It is also often the case that a person who preys on a loan wants to withdraw from income tax because of the worsening of his financial situation. Unfortunately, the decision to gyrate is irreversible and you can not withdraw from it.
Most banks provide credit, relying on the creditworthiness and financial credibility of the borrower, not the borrower. When signing the contract, signing it by the guarantor is necessary to make it binding and binding. A bank that loses a good guarantor also formally loses the guarantee that it will recover the money borrowed.
It is possible to withdraw from the guarantee. Provided that the main debtor pays diligently. At the moment when there are delays with the settlement of the loan, the guarantor will lose any chance of resigning from coercion.
If a resident wishes to give up his role, he should submit a letter to the financial institution which gave the commitment. At that moment, the banking institution may request other collateral from the borrower.