Although it is not as usual anymore, a guarantor can be a solution for you who have difficulty borrowing money. Nowadays people are more often used instead of a co-borrower. Now, it is actually quite the same if you assume that the co-borrower does not intend to help with the repayment of the loan first.
Collateral for a loan that you intend to apply for
In short, a guarantor is a person who goes into collateral for a loan that you intend to apply for. This is only relevant if the lender does not think that you as a borrower have a sufficiently good financial position to borrow money from them. Usually, the error is that there are payment notes. Should it be that you do not have enough income etc. in the eyes of the lender you should really think about whether it is good to borrow or not.
The guarantor is responsible
It is important not to take in a person as guarantor for a loan if it does not have full control of how your finances look or understand exactly what it means to be a guarantor.
Repay this according to the plan
The plan when a loan is obtained is obviously to repay this according to the plan. But if this did not work out, the lender will go to the guarantor and collect the money from this person. A fact that it is very important that the guarantor is aware of.
It is also not easy to get out of a commitment as guarantor so you have to think through it carefully before. For example, if a partner is a guarantor, the loan liability will not be affected in the event of a divorce.
Overall, a guarantor can be a good idea for those who want to borrow money but are not approved by the lenders. But it is important to watch out for the reason that the lenders do not want to lend money plus that the guarantor should be fully aware of the great responsibility.