What guarantor borrowing is
A guarantor loan is credit where a second person agrees to repay if the borrower does not. The guarantor is not a character reference. They take on a legal responsibility.
WiT Money does not currently treat guarantor loans as a widely available comparison category. Do not assume you can still obtain one from a high-street name.
Responsibilities of a guarantor
If the borrower misses payments, the lender can pursue the guarantor for what is owed, which can include interest and charges set out in the agreement. That can damage the guarantor’s credit file as well as the borrower’s.
A guarantor should only agree if they can afford the full repayment without harming their own essentials.
Credit checks and affordability
Both borrower and guarantor are usually assessed. A guarantor with a strong file does not wipe the borrower’s history. Affordability still applies to both sides.
Alternatives
A smaller affordable personal loan, a credit-builder card used carefully, or waiting and rebuilding a file may be safer than asking a relative to guarantee a debt. Free debt advice is the better route if the borrowing is plugging a persistent shortfall.