guarantor

[saphirelady]

have been offered a loan through tenant loans unsecured for �3000,repayable over three yrs @�137.46apr42.8%,but they asked me for a guarantor who is a householder etc,however when we read through the terms and conditions we found out that on the front of the guarantors credit agreement it stated that even if i die he would still have to pay my loan,however on the reverse of the agreement it stated that if i die then he would not be held responsible,is this correct,or even though i am in receipt of benefits and i asked for protection on my loan would i still need a guarantor please help as i am very confused thankyou

[saintjohnny]

Any loan that charges an APR of 42.8% is a swindle and a recipe for disaster. Was this, by any chance, offered to you on the doorstep? The very fact that you are being offered a loan when in receipt of benefits should set alarm bells ringing. I do understand that the banks, who do loans at between 6 and 12% APR may be difficult to get credit from, but there are other ways than putting yourself in debt to sharks like these. I would strongly suggest you look for a Credit Union - these are community based, often non-profitmaking schemes which make credit available to people on low incomes and are approved by the government. The APR's will be tailored to meet what you can afford without being extortionate - although it is possible that they won't let you borrow as much as you would like. I would urge you not to take this loan you have been offered - you could end up in a lot of difficulty.

[buildersmate]

Lending money is a balance of risk and reward for the moneylenders. If the lender takes an unsecured loan, he expects a higher rate of return (interest). But you are being asked for a guarantor, which reduces the risk to the moneylender that he won't get his money back. So 42% interest is ridiculously high. Find an alternative deal.