What is the meaning of Guarantor?

If lenders are concerned about your income, your credit history, or other risk factors when you apply for a loan, they may require a' Guarantor', or cosigner, who signs the loan with you and agrees to pay your debt if you default. For example, lenders may fear that your income may not be high enough to meet your payments if you encounter any unexpected financial setbacks. Laws governing who may serve as a guarantor vary from state to state. Some states require that your guarantor be a citizen of the state where youre obtaining the loan, while others will accept guarantors from out of state as well.

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APABarry Goldsmith. (2010). guarantor. Retrieved September 23, 2026, from http://smartdefine.org/guarantor/definitions/1155248
ChicagoBarry Goldsmith. 2010. "guarantor" http://smartdefine.org/guarantor/definitions/1155248 (accessed September 23, 2026).
HarvardBarry Goldsmith 2010, guarantor, Smart Define, viewed 23 September, 2026, <http://smartdefine.org/guarantor/definitions/1155248>.
MLABarry Goldsmith. "guarantor" 21 October 2010. Web. 23 September 2026. <http://smartdefine.org/guarantor/definitions/1155248>
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