Guarantor

Filed Under »
Dictionary Says

Definition of 'Guarantor'

A person who guarantees to pay for someone else's debt if he or she should default on a loan obligation.
Investopedia Says

Investopedia explains 'Guarantor'

Usually, people with poor credit can only get a loan if they have a guarantor.

Related Definitions

  • Default

    1. The failure to promptly pay interest or principal when due. Default occurs when a debtor is unable to meet the legal obligation of debt repayment. Borrowers may default when they are ...
    Read More »
  • Surety

    The guarantee of the debts of one party by another. A surety is the organization or person that assumes the responsibility of paying the debt in case the debtor policy defaults or is ...
    Read More »
  • Loan

    The act of giving money, property or other material goods to a another party in exchange for future repayment of the principal amount along with interest or other finance charges. A loan ...
    Read More »
    • Creditor

      An entity (person or institution) that extends credit by giving another entity permission to borrow money if it is paid back at a later date. Creditors can be classified as either ...
      Read More »
    • Credit Rating

      An assessment of the credit worthiness of individuals and corporations. It is based upon the history of borrowing and repayment, as well as the availability of assets and extent of ...
      Read More »
    • Impaired Credit

      A deterioration in the creditworthiness of an individual or entity. This is usually reflected through a lower credit score, in the case of an individual, or a reduction in the credit ...
      Read More »
    • Uniform Rules For Demand Guarantees - URDG

      A set of rules developed by the International Chamber of Commerce (ICC) and adopted in 1992. URDG provides a framework for harmonizing international trading practices and establishes ...
      Read More »
    • Signature Guarantee

      A form of authentication issued by a bank or other financial institution that verifies the legitimacy of a signature and the signatory's overall request. This type of guarantee is often ...
      Read More »
    • Proof Of Funds - POF

      A document that demonstrates that a person has the ability and funds available to use for a transaction. It usually comes in the form of a bank, security or custody statement. The ...
      Read More »
    • Completion Bond

      A financial contract that insures a given project will be completed even if the producer runs out of money, or any measure of financial or other impediment occurs during the production ...
      Read More »

Articles Of Interest

Partner Links