If you are wondering if someone with a loan debt can become a guarantor, you are in the right place. Banks can provide loans under many conditions and take into account many criteria when determining these conditions. As you have guessed, the most important of these conditions and the criterion that has the greatest impact on the loan approval process is the credit rating.
If your credit rating is negative, if you have had problems paying off your past debts, the probability of the loan being approved will also be quite low. In this case, there is no need to panic. Banks can significantly increase the probability of loan approval by requesting a guarantor.
In this way, you can also take out a loan. Even without the need to find a guarantor for you, the bank can forward this request directly to you if it deems it necessary. If you are looking for a guarantor under this situation, it is quite natural that you will also wonder if someone who has a debt in another bank can become a guarantor. Let’s take a look at the conditions of surety.
Can Someone Who Owes a Loan Become a Guarantor?
If you are wondering if someone who has a debt in another bank can vouch for a loan debt, there are many points to be considered in this regard as well. Just as the bank takes into account many criteria when granting a loan to a person, the person who will guarantee the loan must also meet certain conditions. For example, the bank’s record must be correct and the credit rating must also be at a good level, which is at the very beginning of the conditions sought.
Not only in cases where the record is broken, but also if you are applying for a loan amount that is far above your paying power, the bank may require a guarantor. If you are applying for such a highly consistent loan, you are also guessing that the person who will be the guarantor should also have a fairly decent record. For this, what you need to do is to bring the guarantor to the bank so that his record is checked. Immediately afterwards, you will be informed whether it is positive or not.
In this case, just as the credit assessment is carried out, the assessment of the person who will guarantee the loan is also carried out in the same way. However, the fact that he continues to pay a loan at another bank does not mean that a person cannot vouch for a different debt. Citizens who have no negativity in their record and regularly pay their loan debts can become guarantors.
What are the Conditions Required for Surety?
The guarantor status, which is not limited only to the bank’s assessment, also contains some conditions for the fulfillment of the guarantor. Since there is no application under the name of oral surety, it is also mandatory for all parties to sign a contract.
The conditions sought in surety are as follows;
The total amount for which the guarantor and the principal debtor will be responsible must be reported
The surety process should be clearly stated
If the guarantor is married, the consent of the spouse to the guarantor is required
What happens to the debt if the person I vouch for dies?