What is a Guarantor?

By Minh Tong Reviewed by Melissa Cook Updated Nov 21, 2022
What is a Guarantor?

A Guarantor is the person who promises that a borrower will pay back his or her debts. A Guarantor might be asked to provide proof of income, like a tax return, and/or a credit report showing their credit score to prove there are no major defaults on their financial record. If the borrower does not make payments on time, the Guarantor can be required to make them for him/her.


A Guarantor plays an important role in providing assurance that borrowers will pay back any outstanding loans they have taken out. In many cases, people may need to apply for financing with a Guarantor because they do not meet certain requirements themselves (such as having enough wealth or income). By acting as a Guarantor and signing loan documents promising to make any missed payments if necessary, the Guarantor can help borrowers get approved for financing.

Requirements to becoming a guarantor

Guarantors are typically asked to meet certain requirements before being approved as one. These may include providing proof of income, like a tax return or pay stubs from their job, and/or a credit report showing that they have no major defaults on their financial record. This is done in order to ensure that the Guarantor has enough money and good financial standing to cover any missed payments if necessary.


When acting as a Guarantor, it’s important always to remember that you’re responsible for making sure any outstanding loans taken out by the borrower are paid back in full and on time. If payments are missed, you’ll be required to make them on time – which means having enough money to cover the missed payments and potentially any late fees. This can be stressful, so it’s important that you fully understand what being a Guarantor means before agreeing to provide this kind of assurance for someone else. In addition, you may want to consult with an attorney or an Americor financial professional for help understanding your responsibilities and obligations as a Guarantor.


Overall, being a Guarantor is an important role in helping borrowers get approved for financing when they may not otherwise meet certain requirements themselves. It’s crucial that guarantors fully understand their responsibilities and obligations before taking on this role, including having enough money to cover any missed payments if necessary. However, with the right guidance and support, being a Guarantor can be a very rewarding experience, helping borrowers achieve their financial goals while protecting their own finances as well.


Minh Tong

Minh leverages decades of experience in marketing, sales management and technology to provide high-level advice and lead new initiatives. Minh has a Bachelor of Science in Business/Managerial Economics from University of California at Irvine. He brings over 20 years of sales and executive management experience to the company and his responsibilities include customer service improvement, professional development, and carrying out communications and marketing. Originally from the east coast, Minh resides in southern California and enjoys spending time with his family, going to the beach, and playing a variety of sports.