Guarantor

Share This
« Back to Glossary Index

A guarantor is an individual or business that contractually guarantees the promise of another called the promisor

If the promisor does not fulfill the promise, the guarantor will be held legally responsible for the default. In large business transactions, the guarantor will usually request the borrower to purchase a performance bond in case of default.

More commonly, the guarantor is a parent who has agreed to co-sign an installment contract for the son or daughter to purchase their first new car.

Should the son or daughter default on the car loan, the lender will likely also sue the co-signing parent as well as the child, both of whom are jointly liable for the debt.

Should there be a default on the loan, the guarantor can be sued by the creditor directly or through a collection agency. Should this happen, it will likely have a negative impact on the creditworthiness of the guarantor.

Related Articles

10 Actions Debt Collectors Are Prohibited From Doing

April 22, 2021
Ten Things Debt Collectors Are Prohibited From Doing According to the Urban Institute, nearly 71 million Americans have debt collection reported in their credit files. This means that almost one-third of our nation is likely receiving letters and calls from debt collectors on a regular basis.  According to the Urban Institute report, Nevada has nearly 50%…
Read more →

Credit Bureau Reporting

April 22, 2021
Adverse Reporting By Credit Services - Consequences And Fixes A poor credit report can prevent you from obtaining credit. If you need help getting credit, it might be because a credit agency has issued a negative statement on you. You might receive a copy of your report; if it contains false information, you should get…
Read more →

Responding to a Creditor's Summons: Rights & Strategies

April 22, 2021
Being Served With A Creditor’s Summons And Complaint The Summons A Summons is a written legal notice that is served along with the complaint and provides the Debtor Defendant with clear and specific instructions concerning the procedures to be followed, including how to file and within what period you must file and serve a written…
Read more →

Consumer Rights Lawyers: Everything You Need To Know

April 22, 2021
Consumer rights lawyers, also known as consumer protection lawyers, protect and defend the legal rights of consumers. Depending on the facts of your case, the consumer lawyer will discuss what remedies may be available to you under your state and federal consumer protection laws. Consumer Rights And Protection Lawyers - What They Do  Consumer Protection…
Read more →

Affiliate disclosure

GotTrouble.org is a one-stop free and open consumer information and expert resource.

Our information helps guide people through the complexity of life-changing legal, financial, and emotional challenges.

One way of doing this is by providing our visitors with a wide range of third-party resources. Some of which are affiliates.

Should you visit an affiliate, we will disclose this fact, and we may earn a commission. We ask that you use your independent judgment in deciding whether an offered service or product fits your needs and purposes.

If you have questions, please get in touch with us at inquiries@GotTrouble.org.

Sponsors