Help needed again if poss regarding being a guarantor

[bb41]

Someone has asked me to be a guarantor for a loan for a flat rental deposit. The company is Trust Two loans.

I really want to help but the APR is nearly 40 percent.

My questions are is this company reputable and also would there be an alternative

Many thanks

[Diana M]

Re: Help needed again if poss regarding being a guarantor

Someone has asked me to be a guarantor for a loan for a flat rental deposit. The company is Trust Two loans.

I really want to help but the APR is nearly 40 percent.

Trust Two Loans is a trading style of Everyday Loans Ltd which has an even higher APR of 79.4% for their loans.

They lend to borrowers with impaired credit that no one else will lend to. Is that your situation or could there be an alternative option?

Who recommended you should use these people? Was it the letting agent who may receive commission for introducing business?

If your friend can't afford the deposit can they afford the rent? Are you guaranteeing their deposit only or their tenancy agreement (i.e. their rent if they don't pay that)?

Di

[bb41]

Re: Help needed again if poss regarding being a guarantor

the guarantee is for the deposit of 2500 not the rent . I'm still unsure as if they default then the APR is huge. I have no debt or credit cards so can't imagine my credit would be that good and paid my mortgage off a long time ago
I was thinking of loaning the deposit myself that way I'm not tied to some credit company with hidden agendas. I'm really unsure to be honest

[des8]

Re: Help needed again if poss regarding being a guarantor

The problem of being a guarantor is that you are guaranteeing a loan to a person who is already a sub prime borrower.

lending the money yourself (do it properly) and at least your risk is only the £2500

[bb41]

Re: Help needed again if poss regarding being a guarantor

yes Des that was my thought's , I'm still not comfortable as in previous postings I have had a tenant who I am having to evict surprisingly so can't afford to lose more money being soft hearted

[Debt Camel]

Re: Help needed again if poss regarding being a guarantor

I was thinking of loaning the deposit myself that way I'm not tied to some credit company with hidden agendas.

I think that is good thinking.

If you trust the person you will be making the loan to to repay you, then lending them the money yourself will be much cheaper for them. And for you it is clear what risk you are taking on. If you do this, you want it it in writing from them that this is a loan and an agreed timescale for it to be repaid - £150 a month or whatever.

If you don't trust them enough to lend them money, then you shouldn't be prepared to act as a guarantor.