Why We Take Someone Else's Word
First things first, it makes little sense to have someone else guarantee your loan if you can get it for yourself. This makes one thing clear - our guarantor loans are for those people who cannot get access to ordinary loans themselves. Our loans are also for individuals, who avoid getting the usual bad credit loans because of sky-rocketing interest rates that accompany them. Having said that, it becomes apparent that your credit history and ability to pay back the loan is of little importance here.
A good credit rating is an assurance of low risk associated with lending money. If we disregard your credit ratings, it doesn't mean we don't need this assurance at all - we do. When you get a guarantor, we substitute their credit ratings and ability to repay the loan for yours. Doing so allows us to hold them responsible in case of late payments and defaults. This makes this position of your guarantor a rather responsible one.
We don't just take their word, but also their credit ratings and other details before deciding on whether they are eligible to guarantee the loan for you. Anyone who is not financially linked to you, is above 21, is a citizen of the UK, and owns a house here is usually considered eligible, given they are able to show a satisfactory credit rating.