I have been asked by a family member to go gaurantor on a car loan for them. What does this actually mean? They say i wont be liable for the debt but i'm pressuming my credit rating will be affected if anything goes wrong. Does anyone know?
Thanks
2007-01-22 20:53:03 · 6 answers · asked by Nick 1 in Business & Finance ➔ Credit
oh yes you will be liable for the debt if they do not pay. its a fancy way of saying co-singing. do not do it unless you want to and can take on the debt.
definition
Guarantor
A person who guarantees to pay for someone Else's debt if he or she should default on a loan obligation.
2007-01-22 20:57:11 · answer #1 · answered by Jen 5 · 3⤊ 0⤋
What you would be doing is guaranteeing to the seller of the car, or the lender of the money to buy the car that if your relative defaults on repayments, you will take over. Do you trust your relative enough not to let you down?
Personally, I've never heard of a happy ending to this kind of situation yet. Proceed with extreme caution.
2007-01-22 20:59:42 · answer #2 · answered by lou b 6 · 3⤊ 0⤋
You will be liable if they default on the agreement & the company will pursue you. I have worked in the credit & debt industry for years & know this to be true. So be very cautious.
2007-01-22 21:09:58 · answer #3 · answered by richardwales79 3 · 1⤊ 0⤋
They lied to you.
You will become liable for the debt if your family memeber doesn't pay up.
Don't sign it!!!
2007-01-22 22:13:45 · answer #4 · answered by peekaboo 4 · 0⤊ 0⤋
you will become responsible for the debt if they falter on it and it could accept your credit rating
2007-01-22 20:57:13 · answer #5 · answered by dizzydogblack 2 · 1⤊ 1⤋
it means you have to pay the loan back if they don't keep up the repayments.
2007-01-23 20:58:49 · answer #6 · answered by kate d 2 · 0⤊ 0⤋