Definition · Glossary
Guarantor
In plain English
A person who agrees to repay a loan if the primary borrower fails to do so. Guarantor loans allow people with poor credit to borrow, but the guarantor's credit rating and finances are at risk if repayments are missed.
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Example
Your parent agrees to be your guarantor for a £3,000 loan. If you miss payments, the lender can pursue your parent for the money.