Credit stories are not always like romantic stories that end in a happy ending. Creditworthiness is something that we can work for years, and we are not always sure whether in a crisis the bank will grant us a loan. How to achieve a happy end and receive the necessary funds? A growing number of banks and loan companies consider collateral as collateral for the amount borrowed. Payday payday surety is the perfect solution for the client, for his or her giraffe – a big risk. Find out what the instant pay guarantee is and what you should know about them !
Loans with a guarantor
For many, loans with a guarantor are a much simpler solution than payday loans taken via the Internet. Even indebted people with a negative credit history can use them. The question is whether, having this financial situation, it is worth assuming more obligations and, in addition, burden them with third parties. Such a decision cannot be taken lightly. Let us remember that guaranteeing payday loans is not one of many possibilities for borrowing money, but a last resort. Each form of loan should be tailored to the borrower’s financial capacity. Having a giraffe increases the chances of getting an injection of cash and guarantees the bank or loan company its return, but let’s measure the strength of our intentions – let’s not ask for a loan guarantee if we know that our budget will not be able to bear the next debt.
Credit of trust
When a relative or close friend asks for a loan, it is really hard to refuse. On the one hand, we do not want to spoil our mutual relations by lack of trust, but on the other, we face a dilemma of whether in the situation where the borrower will not be able to repay subsequent loan installments, we will assume this responsibility. This is the main idea of a surety – a commitment of the girrant to repay the debt when the creditor is unable to do so. If he does not cope with this task, he can attract a debt collector and then a bailiff, who without sentiments will take over part of the property adequate to the pledged obligation. The dark side of gyration is brightened by the fact that thanks to this, banks and companies from the payday loan sector allow customers without a positive credit history or regular evidence to apply for a loan of cash. As a result, anyone can access this service. What more do you need to know about bail?
Is the loan surety a gentlemen’s agreement?
The deal – yes, or gentlemen’s, it’s up to the creditor. As we have already mentioned, it is a guarantee for a bank or loan company such as Wonga or Vivus that they will receive a refund of the money borrowed. To this end, they also need to check the creditor’s financial position – so what if he gets engaged for the borrower, since he alone will not be able to pay his debts. Therefore, both parties must present documents certifying the amount of income, possible debits on bank accounts and undergo the creditworthiness examination procedure. The surety is established at the time of signing the loan agreement – it may relate to the whole amount, its half or other, smaller part and be limited in time. Then, with the expiry of the deadline, the contract between the borrower and the resident expires, even if the commitment has not been fully repaid. This is a good solution for people who are unable to guarantee the creditor that in the future they will have the means to repay his debt.
Payday loan – consequences
The decision to grant a loan must be well thought out, because the surety itself is of a legal nature and is regulated by the Civil Code. Information that we have guaranteed a loan and become joint and several debtors goes to the Credit Information Bureau. Remember that this will affect our creditworthiness, even if the loan will be repaid on time.
This will happen because BIK sends a warning to banks that we may be charged with repayment of someone else’s loan in the future, which will radically affect our financial situation. It is possible that due to guaranteeing a loan to someone, the bank will refuse to grant a loan to us. Let’s take this into account before we say the sacramental “yes” and become someone’s resident.
Let us note, however, that not only the guarantor, but also the bank has obligations. Before he can ask the co-debtor to pay the debt, he must use all possible means to enforce their repayment from the creditor. It can, for example, reach for additional collateral for the loan and take over the mortgage of the debtor. If, despite this, we have to bear financial responsibility, when we do it, we have the right (with the help of a court or bailiff) to demand a refund of the money used to pay the debt.
Protection of own interests
Let’s assume that we decided to guarantee payday pay. The consequences can be serious for us, so it is important that we ensure the most favorable contract terms for us. Let’s not delude ourselves – no bank will do it for us, because it’s simply not in his interest. Here’s what to look out for:
- it is safest if we take responsibility only for the part of the loan (the smallest possible) – it will give the creditor creditworthiness and will not overcharge us if we repay it
- let’s try to negotiate a surety limited by a specific date, as we wrote above – we will not be responsible for the borrower’s non-payment of debt after the date indicated in the contract
- let’s make sure that the agreement contains a clause stating the priority of the bank’s or the loan company’s operations relative to the debtor – only when they use all the possibilities of enforcing the debt from the borrower will they be able to turn to the girrant
- let’s take care of the provision regarding the information system – we may lose contact with the creditor for some reasons, so let us agree in advance with the lender that we will be immediately informed when the debt ceases to be repaid. This will help us avoid the problem of growing interest, and thus our credit history in BIK. Just in case, let’s systematically check the current repayment history – we also have the right to do so.