Query: Are guarantor loans a good idea?
Context: Although this type of loan might seem a good option for people who are looking to improve their credit file, it’s important that you and the guarantor are fully aware of the risks involved.
You should be aware of the cost of the debt and interest rates, as these can be quite high and lead to further problems. If you’re looking at a guarantor loan for consolidating debt there may be other, more affordable options available to you.