A guarantor is basically someone vouching for the lease. In most cases, it’s just like they applied themselves.
For a lease, it means they guarantee that they’re responsible if you can’t keep up. If you stick to everything you need, they never have to think about it. If you don’t pay, they’re required to do so and it will reflect on their credit if the payment doesn’t happen.
They’re saying “I guarantee this will be paid, one way or the other”. If you pay everything, all is well, and you could use that as evidence to the next lease that you can do it on your own. As above, if you don’t they’ll be required to take care of it or deal with the consequences.
Basically, if you don’t have any credit (or have poor credit), a place might not want to rent to you. So I step in and say “I have good credit, and I’ll put it on the line to guarantee the lease won’t be abused, and will be honored completely.” Now they feel better, because if something goes wrong they can always call me. I have good credit and a good history, so they’re confident I can take care of it.
Edit: removed part about loans because this is about leases.
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