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Frequently asked questions
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What is a guarantor loan?
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A guarantor loan is where a third party, the guarantor, provides reassurance that they'll repay the loan if the borrower can't.
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How does a guarantor loan work?
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During the application for a guarantor loan, you'll provide details of your guarantor. The lender will carry out credit checks on them to be satisfied they can repay the loan if needed. You'll make repayments, but if you're unable to at any point, the guarantor can step in.
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Are guarantor loans a good idea?
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Guarantor loans can help people with poor credit history access borrowed funds, but they should be used carefully as they often carry high interest rates.
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