What is a guarantor?
Definition of a guarantor?
A guarantor is a person or organisation that promises to pay back a borrowed amount of money if the person or organisation that borrowed it can’t pay it back.
A guarantor could be a family member, friend, co-worker or someone who meets the legal age to sign a particular contract. A guarantor is expected to have a sufficient income to cover the loan, as well as a good credit history.
Some types of situations that could require a guarantor include:
- renting property
- taking out a bank loan
- borrowing with poor credit history