Being a responsible lender we undertake assessments of each guarantor loan application individually and on its merit. These assessments not only minimise our risk, but also ensure to a great extent that we don’t put the borrower through a difficult situation.
At Guarantor My Loan, our belief is to give another chance to people who have had a difficult past with debt. Poor debt history affects your credit score and potentially deprives you of most borrowing options. We can give you a second chance to sort out your debt and money situation.
However, being a responsible lender we undertake assessments of each guarantor loan application individually and on its merit.
These assessments not only minimise our risk, but also ensure to a great extent that we don’t put the borrower through a difficult situation. Our belief is to consider an applicants’ credit history, which may not be ideal, on an individual basis. We seek to assess that you have made at least some effort to correct your previous debt situation, and that you have the ability to afford repayment of our guarantor loan once lent to you.
So how do we carry out an individual screening once an application is received? This post will help you understand the information about yourself needed for a guarantor loan application with us and what we seek to achieve from the assessment. In practice this means we generally find out, consider, and document a borrower’s income, assets, employment, credit history and monthly expenses.
We generally carry out assessments over the phone and you may find this post helpful to know what to expect on such a call. All your information provided to us is secure and treated with the highest level of data privacy. We will never share your personal details, or situation, with anyone.
That said, we are a friendly bunch here and you will find the process is very relaxed and informal. Don’t take it from us; take it from the many testimonials from customers on TrustPilot that we are very proud of being able to maintain.
Our guarantor loan assessment criteria:
1. Your requirement: As you might expect, we start with your individual requirements for a loan. What do you need the loan for and whether you are convinced you need a loan for your requirement.
2. Your income sources: it does not matter where you work or what you do, even if you are self-employed. So long as you are not using our guarantor loan to invest in a business or money-making venture. Depending on the amount you want to borrow and the repayment term time, we seek to understand whether repayment will put unnecessary burden on you or not. Being completely honest about income sources and assets can immensely help your application.
3. Your expenses: the purpose of the assessment is to check whether repayment of the loan will place any burden on you. After we assess your income we try to understand the granular details of regular expenses, such as running costs of a car/commuting expenses, mobile phone bills, leisure, any other loans you are currently repaying or credit card bills, going out for meals and drinks, shopping, groceries, utility bills, house rent etc.
We may also consider other factors, such as whether you divide household expenses with your spouse/partner, the size of your family and related expenses. These assessments give us a better grasp on your ability to afford repayment without excessive hardships.
4. Your credit history: the whole point of a guarantor loan is to make credit available to borrowers without an ideal credit score. However, keeping in tune with the purpose of these assessments, we may seek to understand certain aspects of your credit history.
Affordability is almost always why your account manager may enquire further and depending on your circumstances you may be asked, for example, why you had defaulted on a previous loan. Our advice is to be honest about your situation and tell us about the effort you have made to improve your debt situation. Most situations where an account manager has had to enquire further have been resolved because applicants have been very honest.
5. Your guarantor: as you might expect we will also ask questions, generally regarding factors such as your relationship with the guarantor, whether the guarantor is aware of your application, how long you have known the guarantor to name a few.
Your Account Manager will also have a separate phone call with your guarantor to ensure they understand they are able to afford repayments if the borrower is unable to repay. We also ensure the guarantor understand the implications and responsibilities in detail and whether they feel comfortable consenting to be your guarantor.
It is important to bear in mind that assessment exercises do not follow a script or a pre-defined questionnaire. Your Account Manager will consider your individual circumstances and will only ask questions relevant to your situation. The objective of your account manager will be to establish a good understanding of your ability to afford repayments without excessive hardships, and all assessment questions will seek to achieve this objective accurately.
These assessment exercises will not be a daunting or lengthy process, and we always put you at ease. It makes the assessment easier and quicker when the applicant is completely honest about their circumstances and requirements. You can learn more about Learn more about our guarantor loans here and about our cashback reward here.
© 2015 Match the Cash Ltd trading as
Guarantormyloan.co.uk. We are authorised and regulated by the Financial Conduct Authority. Interim Licence 661304
Registered in England as Match The Cash Ltd. Registration Number: ZA055459 (ICO)
Registered Office: MATCH THE CASH LIMITED ACRE HOUSE, 11/15 WILLIAM ROAD, LONDON, UNITED KINGDOM, NW1 3ER. Company No. 08667447