The so-called loan guarantees are in fact intended to increase the pass rate of loans, especially when the borrower ' s combined qualifications are inadequate. But I'm going to have to ask you the question: is there a risk of a credit guarantee? Let's discuss this in depth。

Is there a risk that the loan will help secure

If the borrower was able to repay on time, there was in fact no risk that the loan would help secure the loan, but if the borrower was overdue, that would affect the guarantor, with the risk of credit failure, debt obligations and even debt recovery。

In particular, the credit guarantee has several main risks:

First, there is the risk of personal credit losses. Following your help guarantee, the relevant loan information and repayment status will be recorded in your letter of request report. Once the borrower is in a situation of overdue repayment, your credit report will also synchronize this overdue record, so that your personal credit is damaged and the likelihood of applying for a credit product or a bank loan is reduced。

Secondly, it is to assume the risk of additional debt. Guaranteed loans are not that simple, just to help sign, and you also have the same repayment responsibility as borrowers. If the borrower is unable to pay or is deliberately in arrears, you will have to come forward and pay his arrears. Once you have too much arrears, your economic pressure will increase and daily life may be affected。

The last point is the risk of debt collection. Credit guarantee loans typically require joint and several liability guarantees, and if the loan is not repaid by the end of its term, the loan institution can ask you to pay. This means that once the loan is overdue, you may be under siege to collect and recover。