Who should you ask to be Guarantor on a Loan?

If you have decided to take out a guarantor loan or even regular short term loans, then you will need to think carefully about who you choose to be your guarantor. You will need to consider that your guarantor will be obligated to make any loan repayments that you miss and they may have to also pay charges if you get any and if you struggle to make repayments, they may have to make a lot of them. Obviously you will not want to miss repayments and get them to pay for you, but sometimes you get into a situation where you cannot afford them and you need help with it. That is the purpose of having a guarantor, but they may not expect to actually have to make any repayments or may just expect to make a few of them. Therefore there are some factors that you need to think about when choosing a suitable guarantor to ensure that you do make the right choice.

Financial situation

It is wise to start by thinking about their financial situation as well as your own. Consider how capable you are of making the repayments and whether you think that you will be able to continue to make them into the long term. Think about your income and the chances that it will change as well as what you pay out on things and if that is likely to increase as well and if so, whether it will increase in line with your income or not.

You also need to consider the financial situation of the guarantor. Although the lender will take a look at their credit record and use that to judge, you should also have a think about it. Consider what income they have as well as the expenses that they have and whether they will be able to afford any repayments that they need to make. Consider whether they have a mortgage to pay, any debts, a family to take care of an whether they have a job, pension income or whatever as well. You should be able to decide whether you and they will be capable of making repayments on the loan this way.


Age of the guarantor is worth considering as well. If they are getting older then they may be heading towards wanting to retire and therefore may find themselves having to stay at work so that they can cover repayments on your loan if possible. They will be accepted if they are far enough away form retirement age, but they may have been hoping to retire early and may not be able to do so if they are responsible for covering loan repayments. It may be something that they do not think of when they accept the position of guarantor or they may be prepared to give up their dreams of early retirement to help you out, which might be something that you would not want them to do, had you known about it. If they are younger they may be likely to want to buy a home or start a family and this could affect their ability to make repayments as well. So just think about their age and their stage in life to think about how likely their financial situation is to change during the course of the loan.

Relationship with you

It is so important to think about the relationship that you have with the person. By setting them up as a guarantor it may have an impact on your relationship with them. If they do not have to pay anything out, then it is unlikely to make a lot of difference. However, if they have to make some payments for you, particularly if there are a lot they have to pay, then this could have an impact. They may feel cross that they have had to pay out this money. They may expect you to repay the money to them as soon as possible and if you cannot, this may make your relationship with them strained. They may even just think of your differently because you had to ask them to be a guarantor. So think about how important your relationship is with them and whether it could possibly be put in jeopardy if you ask them to be a guarantor. However much you need the money, it may not be worth risking a relationship with this person over.

Relationship with others

You could find that if you ask someone to be a guarantor and other family members or friends find out about it, there could be problems. It could be that they will be jealous of the fact that they have agreed to do this for you and not for them. They may ask the guarantor for money or to be a guarantor for them and they may not be able to do it for more than one person so this could make them not like you as a result of preventing them from getting a loan. Obviously no one may find out about it, so this may not be relevant, but it depends whether you stay quiet and whether the guarantor does as well.


So although you can choose any friend or family member to be a guarantor on a loan, you will be wise to think hard about who you choose. You want to make sure that you are picking someone that is not only financially capable of paying if they need to buy also will be able to do so in the future as well. You need to consider whether your relationship may change as a result as well and whether it may also affect your relationship with others. The money may be really important, but if it means that as a result, you end up falling out with friends or family members it may just not be worth it. Only you know what the relationships are like between you and them and how they are likely to behave in different situations. It is worth thinking it through and making sure that you really do make a careful and well considered decision so that you do not cause relationship problems.