Before accepting to be a guarantor, think about what you can lose

Sometimes, it could be common for you to trust friends or family with whom you have lived a large part of your life, and if it is the case that they have some financial problem, they may come to you for help, for example: They may require you as collateral to acquire a loan.

When a person requests a loan from a financial institution and the latter asks for a guarantee as a requirement, in case they do not comply with the payments in a timely manner, the bank will require a guarantee to be responsible for the debt, therefore Here are some tips for you to analyze before making the decision to be the endorsement of your relatives or neighbors.

Tips, take them into account before you agree to be an endorsement. Photo: Reformation.

1.- Analyze the person you intend to grant your endorsement

Not because he is your best friend or a close relative who has high esteem for you, does it mean that he has the necessary income to cover the monthly payments of a loan, therefore, first find out if he is a person with the financial solvency necessary to comply with the Credit obligations, before you agree to be their endorsement, remember the saying: « clear accounts, long friendships. »

2.- Investigate what credit history the person who asks you to be their guarantor has.

Before you sign any document that forces you to be responsible for a loan, investigate if the person who asks for your support has a good record with banks, department stores, among others, being an endorsement is as if you were the company and you If you were to grant a loan to a client, be careful with that, do not trust yourself, because perhaps the person has a good behavior, but his credit history is on the ground.

Remember that if you agree to be a guarantor, you will be responsible for the debtor’s financial obligation, if for any reason you cannot pay the credit granted, so you must be aware that if your great friend or your dear relative does not fulfill their obligation, you will have to pay.

If you have any questions about this issue, there is the option of requesting reports through the page of the National Commission for the Protection and Defense of Users of Financial Services (Condusef), or by calling 55 53 40 09 99 and 800 999 -80-80.

More information in our Credits section.