Are you looking for a way to secure a loan or rental agreement, but struggling to meet the requirements? Fear not! A guarantor might be the solution you need. In this post, we’ll explain what a guarantor is, the types of guarantors, the difference between limited and unlimited, how to find one, and how they differ from a co-signer.
What is a guarantor?
First things first: a guarantor is a person who agrees to pay off a debt or fulfill an obligation if the borrower or tenant is unable to do so. Think of them as a safety net for the lender or landlord. Having a guarantor adds an extra layer of security, which can help you get a loan or rental agreement that you might not be able to secure otherwise.
Types
There are different types. The most common is a personal guarantor, which is a family member or friend who agrees to be responsible for the loan or rental agreement. However, there are also professional guarantors, such as companies or organizations, that specialize in providing these services for a fee.
Limited or unlimited
Now, let’s talk about the difference between limited and unlimited guarantors. A limited guarantor agrees to cover only a specific amount of the debt or obligation, while an unlimited guarantor agrees to cover the entire amount. If you’re considering becoming a guarantor, it’s important to understand the extent of your liability before making a commitment.
Where do you find one?
So, how do you get a guarantor? The most common way is to ask a family member or close friend. However, if you don’t have anyone who can fulfill this role, there are professional services that can help you find a guarantor for a fee. It’s important to note that some lenders or landlords might have specific requirements for who can act as a guarantor, so be sure to check with them before making any arrangements.
Not the same as a co-signer
Finally, it’s important to understand the difference between a guarantor and a co-signer. While they might seem similar, there are some key differences. A cosigner is a person who agrees to take equal responsibility for the loan or rental agreement, while a guarantor is a person who agrees to cover the debt or obligation if the borrower or tenant is unable to do so.
Wrapping up
A guarantor is a person who agrees to pay off a debt or fulfill an obligation if the borrower or tenant is unable to do so. They provide an extra layer of security for lenders and landlords, which can help you secure a loan or rental agreement that you might not be able to get otherwise. There are different types of guarantors, and it’s important to understand the difference between limited and unlimited guarantors before committing. If you need one, you can ask a family member or friend, or use a professional service. And remember, a guarantor is not the same as a cosigner, so be sure to understand the difference before making any commitments.
Related resources
Here is a list of resources to get started with tradelines: we have a list of tradelines for sale, a tradelines FAQ, various posts about tradelines, a chart of tradeline prices from competitor sites, and a contact form to ask further questions.
Also, feel welcome to ask further questions below.
Things that I use, like, and am affiliated with:
Google Fi offers great cell phone service in 120 countries, get $20 off using the link. Get discounted phones with service activation and no contract.
Uber and Lyft are offering discount rates on your first rides using the links.
AirBnB where you can be home anywhere in the world; get up to $55 off with the link.
I never spend money before I check Mr Rebates, Raise, Ebates or Honey to get cashbacks, rebates, discounts, coupons or cheaper gift cards.
This blog is hosted at Hostgator