It’s easier to find a guarantor than you think. Below are the answers to the most commonly asked questions that you might find useful.

A guarantor is anyone who trusts you. They are someone who is ready to back you up and make loan repayments when you can’t.

Not everyone has a perfect credit history. By finding a guarantor, you allow us to offer you a loan that is affordable.

If there is someone that trusts you, then we can trust you too.

Pretty much anyone can be a guarantor. A friend, a family member, a colleague, you name it. The guarantor should be someone who knows you well, and you should trust each other.

Whoever you are thinking about, remember, that they should meet this criteria:

  • Aged at least 18 years old
  • Be a US resident
  • Have a social security number
  • Have a regular income, and be able to afford your loan monthly repayment if you don’t pay
  • Have a good credit score
  • Have a US bank account where we can deposit your loan

The guarantor doesn’t need to be a home-owner, however, we usually recommend first asking someone who does own their home as they are more likely to pass our criteria.

Also, it’s important to choose someone you trust and who knows you well. Remember that the loan proceeds will be disbursed to your guarantor’s bank account, and it will be their responsibility to give the funds to you.

While having a guarantor will speed up the decision on your loan application, it’s not required to have a guarantor when you apply.

You can start your loan application, get a decision in principle and choose your loan offer. We will then send you a link that you can share with your prospective guarantor so that they can submit their guarantor application.

“Mum/Dad/Friend… I would like to start on an online course to help with my career transition, but I don’t have the money right now. Trustic can offer me a loan, if I find someone who trusts me and can guarantee that I can make the monthly payments. Would you be able to help?”

Be transparent about what you need the loan for, how important it is for you and that it won’t be possible without their help. Making a difference in other people’s lives can be very fulfilling, and chances are, they will be honoured that you approached them.

We would also recommend that you mention the following:

  • Show that you did your research and chose the best option for your circumstances. Trustic is ideal for someone who has difficulties qualifying for a credit with mainstream lenders and would like to stay away from high-cost credit options.
  • Let them know that if you keep making timely loan repayments, a loan from Trustic will help you build a positive credit history that may improve your credit score.
  • Reassure them that you can comfortably afford the monthly payments. And if anything goes wrong, Trustic will always try to come to an arrangement with you first.
  • Assure them that they will be in control. The loan proceeds will be disbursed to their bank account, so that they can transfer it to you. Trustic will keep them updated on the status of the loan directly.
  • Acting as a guarantor will not affect their credit score nor their ability to borrow in the future, as long as the loan is in good standing.

Honesty is the key. You might be asked why you need a guarantor in the first place, which might lead to uncomfortable discussion about credit scores. However, once it’s done, you might wonder why you were hesitating to talk about it in the first place.

We have also created a comprehensive guarantor guide that you might want to share with them.

No. Actually, doing so will be considered a fraud.

Trustic is going to send you a link to the guarantor application, that the guarantors should complete on their own.

Once a guarantor application is completed, and the guarantor is conditionally approved, Trustic is going to be in touch with them directly to ensure that they understand their responsibilities.

Guarantors will have to complete their own application. Don’t worry, it’s pretty straightforward and shouldn’t take more than 5 minutes.

We will ask for their personal information and income details.

If approved, they will have to provide their bank account that Trustic will use to disburse the loan proceeds, and set up a payment method. They will be able to review your consumer loan agreement and sign the personal guarantee obligation document.

The guarantor is responsible to make a payment on the loan when the borrower cannot.

Also, the guarantor is responsible to give the loan proceeds to the borrower the loan is disbursed to their bank account.

Guarantor is responsible to make a payment when the borrower is not able to. We want to make sure that the Guarantor is fully set up to do so in order to avoid any unnecessary late payment charges.

Both a Co-Signer and Guarantor allow you to qualify for loan terms that otherwise you might not be able to qualify (i.e. lower interest rate, higher loan amount, etc.). However, there are some differences in responsibilities between the two.

You can think about a Co-signer as your co-borrower who jointly signs your loan obligation. The co-signer will have the same responsibilities on the loan obligation as you, the prime borrower, from day 1.

The Guarantor becomes responsible for your loan obligation only in the event when you, the borrower, cannot make a payment. For example, the Guarantor will not sign your consumer loan contract, instead they will be signing their own guarantor obligation. Also, the loan will not be shown on their credit report. Trustic will start reporting the loan on Guarantor’s credit report only in the event of borrower defaulting on their loan.

In order to reduce fraud, we have decided to disburse the loan proceeds to the guarantor. Once received, the Guarantor is obligated to give the funds to the borrower.

Also, we do believe in empowering guarantors by giving them more control.

Congratulations! If you are reading this section, someone has trusted you enough to become their guarantor.

At Trustic we believe that credit shouldn’t cost an arm and a leg, and that everyone should have access to affordable credit. However, the traditional ways to assess someone’s creditworthiness based on their credit profiles is not working for many Americans. Someone didn’t have an opportunity to start building their credit history early enough, or simply is too young to have it. Someone has too much student debt, doesn't use a credit card or simply has got bad financial advice at some point in their life. The fact is that many believe that the system was stacked against them from the start. They may have a stable job or income and act responsibly and still not have access to affordable credit.

This is where we believe you can help.

By stepping in as a Guarantor you have an opportunity to make a positive change in someone’s life by vouching for them thus allowing them to qualify for an affordable credit.

It’s imperative that you know the borrower well before deciding to guarantee for them. They do not need to be your family member, however, they should be someone you trust.

Essentially, as a Guarantor you are responsible to step in when the borrower cannot make payments on their own.

Also, we disburse the loan funds onto your bank account. It will be your responsibility to give the money to the borrower.

It does not, as long as the borrower continues making regular payments on their loan.

As you are a Guarantor, the loan is not reported on your credit profile, thus it does not affect your credit score nor your affordability assessments if you decide to borrow yourself in the future.

However, if the loan goes into default, we have the right to start reporting it for the Guarantor as well and it will show up on your credit report.

We want to ensure that our loan product is as accommodating to guarantors as possible. Once the borrower makes 12 consecutive monthly loan payments on time, the guarantor will be released from their guarantor obligation.

In order to qualify to be a Guarantor, you must meet the following minimum criteria:

  • Aged at least 18 years old
  • Be a US resident
  • Have a social security number
  • Have a regular income
  • Have a good credit score
  • Have a US bank account

We want to make sure that you have full transparency and understanding of what’s happening with the loan.

From the start, the loan funds are disbursed to your bank account. It is your responsibility as a Guarantor to give the funds to the borrower.

Once the repayments become due, you will receive regular updates. If there are any payment delays or any issues whatsoever, you will be notified immediately.

You will be notified immediately if there are any delays in receiving the due loan payments. If the borrower is not able to make the payment(s), it is your responsibility as a Guarantor to step in.

If the borrower continues having repayment issues, you will be presented with several options as detailed in your personal guarantee document, including taking over the loan payments or accelerating the loan.

Once you agreed to act as a Guarantor, a Borrower will forward you a guarantor application link for you to complete.

First, we will ask you for some personal details (name, address, date of birth), as well as your income details. We will run a number of automated checks in order to confirm your identity, check your credit reports, etc and let you know if you are pre-qualified to be a Guarantor. This part takes just a couple of minutes and doesn’t affect your credit score.

Once you are pre-qualified, we will ask you to submit and verify the following additional information:

  • Provide additional info about your job or income
  • Confirm your bank account & repayment method
  • Sign your personal guarantee

And that’s it. Once the borrower finalises their process and the loan is approved, you will receive the funds onto your bank account. It will be your responsibility to give the money to the borrower.

Anyone who meets the basic criteria below can apply for a loan with us:

  • Aged at least 18 years old
  • Be a US resident
  • Have a social security number
  • Have a regular income
  • Have a US bank account

The application process for borrowers is intuitive and shouldn’t take more than 10 minutes. We will ask you for the following:

  • Provide your personal details
  • Provide your income details
  • Choose your loan offer
  • Let us know who your guarantor is
  • Confirm your repayment method
  • Sign your loan agreement
  • Receive funds

The funds are usually disbursed the same business day upon approving your loan application.

Once the borrower has received their loan offer, they will get a guarantor application link by email and sms that they can share with their prospective guarantor.

The prospective guarantor can use that link on their phone or desktop to submit required information. The process is fairly straightforward and should not take much time.

First, we will ask for some personal details (name, address, date of birth), as well as your income details. We will run a number of automated checks in order to confirm your identity, check your credit reports, etc and let you know if you are pre-qualified to be a Guarantor. This part takes just a couple of minutes and doesn’t affect your credit score.

Once you are pre-qualified, we will ask you to submit and verify the following additional information:

  • Provide additional info about your job or income
  • Confirm your bank account & repayment method
  • Sign your personal guarantee

And that’s it. Once the borrower finalises their process and the loan is approved, you will receive the funds onto your bank account. It will be your responsibility to give the money to the borrower.

Our applications for borrowers and guarantors shouldn’t take more than 10 minutes.

Yes, we do run credit and identity verification checks for borrowers and guarantors.

For borrowers, checking the rates doesn’t affect their credit score.

For guarantors, it doesn’t affect your credit score to apply. Also, once the loan is disbursed, it is not reported on your credit report as long as the loan is in good standing.

You can borrow between $1,001 and $3,000.

Our personal loans are repayable in equal monthly installments over 36 months.

Yes, you can repay your loan early without incurring any penalties nor additional charges.

APR ranges between 9.99% and 35.99%.

We charge an origination fee of up to 5%.

A representative example: You receive a loan of $3,000 repayable over 36 monthly installments with an interest rate of 25% and a 5% origination fee of $150, for an APR of 28.9%. In this example, $2,850 will be given to your guarantor as your agent and you will make 36 monthly payments of $119.28.

Trustic loans are currently available in the state of Arizona only.

Can’t find your answer here? Please, email us at support@trustic.com.