Taking a loan with a collateral or a guarantor? Which one would typically work better for you?

[Kross]

There are various options to how one can secure a loan. They can either use a a guarantor or they use a collateral. All of them are risk management strategy by the lender.

With your current financial position, which among the two ways to secure a loan would work for you? Collateral or a guarantor?

 

[Suba]

Is there anyone else who can guarantee your debt besides your parents?. In addition, you also need an agreement with the guarantor and their signature. If you take a loan with collateral at the bank, the interest is usually smaller than online loans.

 

[Springtime]

It is not easy to get a guarantor. S(he) has to trust that you can repay the loan on time. I would hesistate to be a guarantor if for my family members or close friends. Using a collateral is easier.

 

[King Belieal]

I can't even think of guaranteeing a loan for anyone apart from a wife that I have found to be really prudent.