Payday Loan Without a Guarantor or With a Guarantor?
The most common type of modern loans. Today, you can do without a guarantor in the vast majority of cases, for many of us it is just the music of the distant past. In the socialist era, the payday loan practically did not work without a guarantor; siblings or close relatives were normally guaranteed. This was also a relatively small sum of money compared to today.
The nineties of the last century were in a similar vein, with banks routinely requiring a guarantor to be able to lend an amount in the order of hundreds of thousands – for housing, car, reconstruction – in fact anything. And yes, of course, in most cases, the reason had to be stated.
Today the guarantor is not easy to bring, no one wants
Today’s situation is clear. Even if the payday loans where the guarantor was required were a little more, it would certainly not benefit the cause. Although this type of credit has not yet disappeared from the market, there is one clear rule. There is a certain set of people who would undoubtedly need a guarantor in such a case, but would not find it in the least.
Who would be interested in making a guarantor, especially someone he doesn’t really know? The exceptions are the minimum, as the guarantor is actually responsible for ensuring that the debtor honors his obligation. Own money.
Of course, for a loan of several thousand crowns, the guarantor will not be required anywhere. But if it goes about three hundred thousand crowns for a new car, it will be better to get a guarantor, although it is a very difficult task. In particular, a non-banking company will be given a clear message that the client is creditworthy – and thus credible and there is no reason to be uncomfortable to approve the loan.
And who can actually make a guarantor?
The basic assumption is an obvious, adult citizen of the Czech Republic, who has no outstanding obligations from the previous period (not only to the entity for which he will be the guarantor). To be valid, the guarantor must have sufficient creditworthiness, at least as good as the applicant (and rather a little higher).
But you can not guarantee, among other things, the husband or wife, which is perhaps quite a surprising rule. Here, however, it is possible, at least for some companies, to find a life partner as a co-applicant – at which time the total amount borrowed can be substantially increased.
Let’s summarize all the knowledge to date, if you have a guarantor, it means that:
In any case, your creditworthiness will be significantly higher, the provider will be satisfied.
You can achieve a larger loan, the credit limit will increase substantially with the guarantor.
If you have a guarantor, this can reduce the original interest rate and bring more interesting conditions.
While your spouse is directly excluded from possible guarantors for your debt, this does not apply to your parents, grandparents or even your underage children. Obviously, getting a friend known as a guarantor equals winning a lottery, and even then there will probably be some mistrust, so look better at the family, here the whole thing will be more certain.
If you are a guarantor and there is a repayment problem with the debtor, there is definitely no end to the world, as many might think. You can recover the money you might pay for the debtor through the courts – including insolvency proceedings.
Nowhere is it written that you have to lose that sum of money forever. Despite all this, however, the position of the guarantor is very unpopular and it is true that someone will not just guarantee you, especially against a non-banking company.
If you were to be a guarantor, check the debtor well – his payment discipline may not be as great as he tells himself. Likewise, there may be a problem where you did not expect it. So it must be a person you know very well and literally put your hand in the fire.