If i am a guarantor & customer misses payment will that affect my credit rating
archie123 (1 year ago)
If i was guarantor for someone & the person missed a payment would this affect my credit rating ?
FLM Loans (7 mths ago)
If the applicant misses a payment we will take the money from the guarantors account, as agreed when the loan was paid out. If we are unable to take the money from the guarantors account, it will affect the applicants credit rating as they have paid their loan late, at this point it doesn't affect your credit rating as a guarantor. We don't write back to your credit file. The only time your credit history may be affected would be if the payment was so late that it reached court action and the court would write directly to your credit file.
Comments (2)
FLM Loans (3 mths ago)
Hi acb,
We will commence court actions after your account has been in arrears for 90 days if we feel that court actions are necessary. As per the agreement, the borrower and the guarantor must maintain the monthly payment figure. Therefore we will be in touch with both the borrower and the guarantor to work out ways of clearing the arrears to avoid court actions before the payment is made in full.
The loan isn't secured on the guarantor's properties. However if the account falls in arrears for a certain period of time, then we may issue a charging order on the property as way of collecting the payment.
Thanks
acb (3 mths ago)
how much arrears are you in when it goes to court and can you come to some arrangement to help befor it goes to court,and are your loans secured on the guarantors properties