{"componentChunkName":"component---src-templates-blog-js","path":"/blog/the-community","result":{"data":{"allStrapiArticle":{"edges":[{"node":{"id":"Article_611527678b186406bfa085e4","Title":"How-To Guide: How to have a discussion with your guarantor.","published_at":"2021-08-12T13:55:23.064Z","Slug":"how-to-have-a-discussion-with-your-guarantor","Cover":{"childImageSharp":{"fluid":{"src":"/static/1949f9ef873cfa3634ec682be9caa79d/ee604/dd87fc7767ba684e8b884f3c3fcdc998.png"}}},"Categories":[{"id":"60807b9a3533640694655aaf","Name":"The Community","Slug":"the-community"}],"Content":[{"Image":null,"LeadParagraph":null,"NormalParagraph":null,"BlockquoteCite":null,"BlockquoteText":null},{"Image":null,"LeadParagraph":null,"NormalParagraph":"Asking someone for help can be an unnerving experience, however, it shouldn’t be. However, based on our experience, the large majority of people will be glad if their family member or a friend approached them for help.\n\nWe've put together some information and tips to facilitate your discussion with your prospective guarantor.\n\nWhen you have the discussion, make sure to do it in person or over the phone so that it’s easier to address any questions or concerns. Transparency and preparation is the key. Based on our survey*, 70% of prospective guarantors are more likely to guarantee a loan if the borrower can demonstrate that they did their homework and this is the best option they qualify for.\n\nFirst of all, it pays off to be upfront regarding why you need the loan as guarantors are more likely to support the causes they agree with. Most people agree that a guarantor loan is an appropriate solution to handle major or unexpected expenses such as medical bills, car repairs or education-related expenses.\n\nSecond, it’s important to demonstrate that you can afford your monthly loan repayments. Your guarantor wants to help, but they don’t want you to get into an obligation you cannot support. We advise using a budget template to account for your monthly inflows and outflows to demonstrate how the loan’s monthly payments would fit into your budget.\n\nAnd third, make sure your guarantor understands their responsibilities under their personal guarantee agreement. Remember that your Guarantor will have to step in if you cannot make payments on your own. It might also be helpful to mention that the guarantor loan will not affect your Guarantor’s credit score nor their ability to borrow as long as the loan is in good standing.\n\nIt’s important to keep the conversation positive and thank them regardless of the outcome. Being a guarantor is a big commitment and not everyone might be in a good position to commit to a guarantor relationship when you approach them. It might take several conversations to find the right person. Good luck!\n\nNotes: * Online survey based on 200 respondents administered by Trustic in May 2021.","BlockquoteCite":null,"BlockquoteText":null},{"Image":null,"LeadParagraph":"`","NormalParagraph":null,"BlockquoteCite":null,"BlockquoteText":null},{"Image":null,"LeadParagraph":null,"NormalParagraph":null,"BlockquoteCite":"`","BlockquoteText":"`"}]}},{"node":{"id":"Article_60d710d4d466c24df8279ab9","Title":"Why Guarantor Loans Is Good Alternative for People With Inadequate Credit History","published_at":"2021-06-26T11:34:46.018Z","Slug":"why-guarantor-loans-is-good-alternative-for-people-with-inadequate-credit-history","Cover":{"childImageSharp":{"fluid":{"src":"/static/bebe8516abb326e3fdb05acfb4c63e9b/14b42/af8a83744efd333d99b193de712623c6.jpg"}}},"Categories":[{"id":"60807b9a3533640694655aaf","Name":"The Community","Slug":"the-community"}],"Content":[{"Image":{"childImageSharp":{"fluid":{"src":"/static/bebe8516abb326e3fdb05acfb4c63e9b/14b42/af8a83744efd333d99b193de712623c6.jpg"}}},"LeadParagraph":null,"NormalParagraph":null,"BlockquoteCite":null,"BlockquoteText":null},{"Image":null,"LeadParagraph":null,"NormalParagraph":"One of the most important things, as you look to borrow loans for just about anything, is your credit score. A credit score helps to determine if people are eligible for loans. Many people look forward to building and maintaining their credit score to take out loans such as loans, mortgages, home equity loans, and auto loans. Some people can keep good credit scores of 700 and up and enjoy the benefits of getting great deals on loans and credit cards, and cell phone plans. \n \nHowever, not everybody has a good credit score and ends up having their loan applications denied, which forces many people towards using high-cost credit options like payday loans. \n\nMany people have ended up with inadequate credit because they lack knowledge or good financial habits. Some poor financial management habits that cause poor credit history include paying credit card loans late, not paying at all, or maxing out credit cards. \n\nHowever, there are also notable differences in credit scores between racial and gender groups. For example, African-Americans have the highest percentage of people with a credit score of 640 or lower at 54%. Hispanics follow behind at 41% and Caucasians at 37%. Women statistically have a pay gap between their male counterparts, and that could explain debt and higher credit utilization. About 2 out of 5 women between the ages of 18 and 39 claim the credit hurts them more than helps them. Situations like this not only take away the ability to qualify for loans or credit cards. Housing and job opportunities could also be denied from bad credit.\n\nPoor credit history is caused by a myriad of factors and can happen to anyone. But there is no need to turn to payday loans or high-cost installment loans when an unexpected expense comes up. Guarantor loans make it possible for people who have a poor credit history to get affordable loans.\n \n### How does it work?\n \nA Guarantor loan means that a guarantor will provide a guarantee for the person taking the loan. With this arrangement, the guarantor is promising to repay the borrower's debt if they default on their payment. The guarantor is required to be a legal US resident with a good credit history. \n\nBecause Guarantor is not a co-signer, it means that the loan is not going to be reported on their credit report as long as it’s in good standing. This means that providing the guarantee is not going to affect their credit score or their ability to borrow if the borrower keeps making regular loan repayments and the loan is not in default. \n\nAlso, lenders like Trustic, provide additional incentives to Guarantors. For example, if the borrower makes 12 consecutive monthly loan payments on time, Trustic releases the guarantor from their obligation, and the loan will turn into a regular personal loan. \n \n### Benefits of  guarantor loans\n \nThere are different benefits of having a guarantor loan. The main one is that people who are not considered creditworthy can secure an affordable loan to accomplish their dreams or manage an unexpected expenditure.\n\nIt is an excellent way to empower people. Not everyone will have a good credit history, so it is good that the guarantor can help them obtain the loan. Guarantors are not lending their own money. They are only required to sign the agreement, and then the lending institution will provide the funds for the loan. The borrowers also benefit from being able to repay in monthly installments and build their credit history. \n \nHowever, you should only guarantee a loan for someone you know well as you will be required to repay the loan if the borrower cannot do so. However, many people who have taken out guarantor loans have successfully repaid their loans without any trouble to the guarantor.\n \n### How to find a guarantor\n \nA guarantor has to be an adult family member, colleague, or friend. They must prove that they have a good credit history and can stand security for the loan. A guarantor has to trust the borrower before signing the guarantor agreement.\n\nAs with any credit decision, it’s important to ensure that the loan payments are affordable to the borrower before taking on the loan. This would ensure that there are no payment difficulties down the road. \n \n### In conclusion\n \nPeople often feel stuck in a pit of hopelessness when they cannot get loans due to low credit scores. But guarantor loans make it possible for persons with poor credit history to secure the affordable funding they need to achieve their financial goals. \n\n### Additional reading: \n\n[https://www.cnbc.com/2021/02/09/41percent-of-younger-women-say-their-credit-score-hurts-more-than-helps.html](https://www.cnbc.com/2021/02/09/41percent-of-younger-women-say-their-credit-score-hurts-more-than-helps.html)\n[https://www.cnbc.com/2021/01/28/black-and-hispanic-americans-often-have-lower-credit-scores.html](https://www.cnbc.com/2021/02/09/41percent-of-younger-women-say-their-credit-score-hurts-more-than-helps.html)\n","BlockquoteCite":null,"BlockquoteText":null},{"Image":null,"LeadParagraph":"`","NormalParagraph":null,"BlockquoteCite":null,"BlockquoteText":null},{"Image":null,"LeadParagraph":null,"NormalParagraph":"`","BlockquoteCite":null,"BlockquoteText":null},{"Image":null,"LeadParagraph":null,"NormalParagraph":null,"BlockquoteCite":"`","BlockquoteText":"`"}]}}]},"strapiBlog":{"id":"Blog_6086e738582a57003e77c5dc","Title":"Welcome to Trustic Blog","Description":"A place to share ideas and news from our community of borrowers and guarantors."},"allStrapiCategory":{"edges":[{"node":{"id":"Category_60807b9a3533640694655aaf","Name":"The Community","Slug":"the-community"}},{"node":{"id":"Category_60886cbd04b55918e6ca8c3c","Name":"In the News","Slug":"in-the-news"}}]}},"pageContext":{"filter":{"Categories":{"elemMatch":{"Slug":{"eq":"the-community"}}}},"pageNumber":0,"humanPageNumber":1,"skip":0,"limit":3,"numberOfPages":1,"previousPagePath":"","nextPagePath":""}},"staticQueryHashes":["3649515864","63159454"]}