How does the guarantee affect the loan?
An effective way to increase your chances of getting a positive response when applying for a loan from banks is through a surety bond. Each financial institution is more lenient towards borrowers who have a guarantor. Who can be taken as a guarantor, what are the peculiarities, pluses and minuses of guaranty when applying for a bank loan? This article will help to answer these questions.
Special features of a loan with a guarantor
Financial institutions are more willing to accept loans with a guarantor. Many banks are willing to give loans with one or two guarantors without additional fees at a fairly attractive interest rate. More information on the website: https://apps.apple.com/us/app/cash-advance-tsaip-loan-app/id1492828465. When deciding on a loan, banks often pay attention to the guarantor’s age and ability to pay. To make sure that the guarantor is solvent, he or she has to provide the same list of documents to the credit officers, as the borrower. Credit managers necessarily check the guarantor’s credit history, so if the guarantor has had frequent delays in debt repayment, the bank may refuse to sign a contract of guarantee.
How to avoid rejection
The ideal borrower from the standpoint of any bank – a perfectly healthy person 23-40 years old with a work record of not less than a year, with a high or at least medium income, living in your own house or apartment. It is desirable that he was formally married, but was childless or had at most one child, and did not expect to add to the family in the foreseeable future. What should a borrower who does not meet these criteria do? Do not hide anything, to report knowingly false information, the bank security service will still find out the truth.
There are different ways to increase the chances of a positive decision:
- Calculate in advance what part of your income will be a monthly payment. If the portion exceeds 40%, it is better to reduce the loan amount.
- Banks are more willing to consider applications for loans secured by real estate.
- If it’s a relatively small amount, it’s better to go to an organization engaged in microloans. The interest rates there are higher, but the requirements for borrowers are not as strict. You can also use modern cash advance apps and get money with their help.
- The bank has the right to refuse a client without explanation. But if you have already been refused by several banks, and the reason is not clear, you can try to find out by contacting certain organizations.