Definition
A guarantor is an individual or entity that promises repayment of a debt held by the debtor.
Analysis
A guarantor is legally liable for the debt and may be required to repay it if the debtor fails to do so. Any debt guaranteed by a guarantor may be reported on the guarantor’s credit history only. The debtor’s credit history will not be affected positively or negatively.
A guarantor is similar to a cosigner, except that the debtor’s credit history is ignored when a guarantor is used.
