What Is a Credit Guarantor

A guarantor is a financial term describing an individual who promises to pay a borrower’s debt in the event that the borrower defaults on their loan obligation. Guarantors pledge their own assets as collateral against the loans. … The term “guarantor” is often interchanged with the term “surety.”

Does having a guarantor affect credit?

Does having a guarantor affect credit? The short answer is yes, both having a guarantor and being a guarantor on a loan can affect your credit. If you have a guarantor on your loan, it can help balance out your credit score during the loan application process.

What does it mean to be a guarantor for someone?

A guarantor is someone who agrees to pay your rent if you don’t pay it, for example a parent or close relative. If you don’t pay your landlord what you owe them, they can ask your guarantor to pay instead. … The agreement sets out the guarantor’s legal obligations.