The loan may be secured in some cases by a surety given by a third party, who is called a guarantor or a resident. How is the loan spreading? What to look for if someone asks us to become a resident? Is this risky?
If someone applies for a loan and there is insufficient collateral required by the lender, they can offer another person’s guarantee. Some companies on the market recognize such collateral. Most often this happens in cases where the applicant has no fixed income or assets that may constitute a pledge. In the absence of regular repayments, a third party surety of the loan allows the lender to apply for settlement of arrears to the gironde. This is because the resident is responsible for paying off the debt in the same way as the borrower.
Who can be a resident?
A loan arrangement is a type of collateral that can be successfully used when the applicant is an unemployed person or, e.g. an elderly pensioner. In such a case, the creditor’s credibility and creditworthiness are important for the lender. Therefore, not everyone can give a loan guarantee. It must be the person who would apply for the loan by himself or herself from the lender. An unbelievable resident brings nothing new to the loan application.
The resident will be checked by the loan company just like the applicant. It should therefore be creditworthy. It cannot be a person who is in arrears or is late. A negative factor will be the bailiff’s execution against a candidate for a girrant. The chances of accepting someone else’s surety increase if the resident has a good credit history, few own liabilities in the form of credits, loans, debits or charged credit cards (and preferably none at all) and has a stable income. Regarding the age of the girrant, it is important in the case of high loans spread over installments. If a resident is 70 years old, has a stable income in the form of a pension and guarantees a 30-day loan for PLN 500, this will probably not be a contraindication for the lender to accept such a guarantee. However, if the same person is to be a resident in a 5-year installment loan agreement for a very high amount, the loan company may assess the risk of non-repayment as too high.
A Jew does not have to be a person related to the borrower in any way. In addition, several people can give guarantees for one loan, which increases the chance that the applicant will receive the loan.
Is it dangerous to pay for the loan?
Unfortunately, in practice the loan is quite risky. First of all, because this type of collateral is generally used as a last resort if the borrower is not in a good financial position for the loan company or the bank to consider him as a trustworthy customer. Before we agree to guarantee a loan to someone, we should think about it very well. Actually, we should reason similarly to analysts from a loan company or bank. Let’s look at the financial situation of the person who asks us to live up to his commitment. If the person’s finances are in a hopeless condition, we are aware that if he stops paying off the loan, we will have to return the money to the lender. Therefore, any assurances that “will be good” that have no factual coverage should not convince us.
Żyrowanie as a “bear’s favor” for the borrower
Many people become residents because their friends or family ask them to. In such a situation, the potential resident does not want to be accused of lack of kindness or refusal to provide assistance. It should be remembered, however, that supporting a person who has no means to settle such an obligation in obtaining a loan, we do not really give him life support. We provide her with so-called “Bear’s favor” by pushing into the debt loop, and in the event of such a loan, we also expose ourselves to financial problems. This does not mean that we should always refuse a guarantee. However, this should be done carefully. If the loan is low and the repayment is not a problem for us, we can agree to take a moderate risk. However, if its repayment will seriously burden our budget and threatens to upset financial balance – you should refuse.
The effects of the loan for the guarantor
If the positive scenario is realized and the loan is reimbursed by the borrower, the resident does not bear any costs. The only tangible consequence for him is a temporary decrease in creditworthiness until the liability is settled. Loan companies and banks are likely to treat a gyrated loan as an open liability also for the guarantor.
Problems begin when the borrower defaults. In such a situation, the loan company or bank may ask the payee to repay. If the guarantor fails to do so, the creditor may refer the matter to a bailiff. As a consequence of a loan granted to an insolvent person, it may be for a tyrant to take his wages or property. This is not only expensive, but has a very negative impact on the creditworthiness of the guarantor and prevents him from practically using loans and credits until the case is closed.
Is it worth having loans?
As with many of our life decisions, engraving simply requires prudence. Let’s decide to guarantee someone’s loan only if its repayment is not difficult for us. You can always ask the borrower to find additional residents, so that in case of problems, the repayment burden will be spread over more people. To sum up: let’s live with our heads ?