A guarantor is someone who agrees to take financial responsibility for another person. People who are young or have bad credit will often need a guarantor for things like loans and rental agreements. In order to be a guarantor, it is likely that you will be asked to fill out a guarantor form. Before you sign this form, it is important to research the request and understand the risks involved. Properly preparing to become a guarantor will help you avoid a financially and personally difficult situation.

Method 1
Method 1 of 3:

Completing the Form

  1. 1
    Assemble all the required materials. Before you begin filling out the guarantor form, make sure that you have all pertinent materials. Depending on the guarantor form, you may need bank statements or tax returns. Make sure that you have the materials, or at least the information on them, available when you begin filling out your guarantor form.[1]
  2. 2
    Give your personal information. When you begin filling out the form, it will ask for your personal information. This will include things like your name, home address, social security number, and phone number. You will need to provide this information so that the entity you are signing the agreement with can run a credit check.[2]
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  3. 3
    Provide any pertinent financial information. A guarantor form will also likely ask you to provide information about your financial background. You will need to include information about your income, current employment, and banking information. Because this is relatively sensitive information, avoid filling out this form in a public space.[3]
  4. 4
    Sign the document, and get it notarized if necessary. Once you have completed the form, you will need to sign it. In some cases, you may need to have it notarized. You can find a notary online or at your bank. For a small fee, they will sign and stamp the form. After it is signed and notarized, you will want to mail it to the lender or landlord.[4]
    • Be sure to mail the documents. The creditor or landlord will need to see the notarized stamp in person. If you send a copy, they will likely ask for the original.
    • If you are guaranteeing a loan, the financial institution you are making the agreement with will likely have a notary available.
    • If it is an auto loan, many car dealerships have a notary on staff.
  5. 5
    Request a copy of the form. Once you have completed the guarantor form and returned it, ask the entity you signed the agreement with to send you a copy of the form, as well as all pertinent documents. You will need these for your records. You may also need them later if the person you became a guarantor for defaults.
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Method 2
Method 2 of 3:

Researching the Request

  1. 1
    Read all the agreements and documents. If someone asks you to be a guarantor, request that they give you all the pertinent documents. Because you are agreeing to adhere to the other person’s agreement, it is important for you to know what you are getting into. Ask them to send any contracts, legal documents, or financial statements related to the agreement.
    • If you are a guarantor for a loan, request a copy of the loan agreement.
    • If you are a guarantor for a lease, ask for a copy of the lease. Many landlords choose to have a cosign agreement on the lease instead of a separate guarantor form.
  2. 2
    Determine if you can afford it. Evaluate your finances and consider if you could cover the other person’s obligations if they defaulted. Figure out if you could make their monthly payments or cover any charges or late fees they accrued. If you cannot to meet these financial obligations, you should strongly consider not guaranteeing the loan or lease.
  3. 3
    Consider the resources of the person asking you to be a guarantor. In order to get a better idea of what you may be getting into, ask the person requesting you to be a guarantor to send you their financial records. In order to avoid getting stuck with the bill, you will want some kind of evidence that the other person is capable of adhering to their agreement.
    • You should ask them to send you a tax return, a pay stub, or their credit score. These things will help you get a better understanding of their finances.
    • Never become a guarantor for someone you do not know.
  4. 4
    Inquire about deadlines. Because many agreements, particularly apartment leases, are time sensitive, you will need to know all pertinent deadlines. Inquire about when you need to have the guarantor form signed and submitted. If you do sign the form, getting it in on time will impact whether or not the agreement is accepted.[5]
    • You may also want to contact the entity the person is making the agreement with.
  5. 5
    Contact the creditor or landlord. Before you sign any documents, you should contact the entity with which the other person is making an agreement. If you are becoming a guarantor on a loan, contact the creditor to see if you can negotiate specific terms of the agreement. If you are becoming the guarantor for a lease, get in touch with the landlord or rental company.
    • Ask the person you are becoming a guarantor for to forward any relevant contact information.
  6. 6
    Negotiate with the creditor or landlord. As a guarantor, you may be able to negotiate the terms of the agreement you are signing. For instance, with a creditor, you might try to limit your liability for the loan and negotiate for the exclusion of court costs, attorney fees and late charges. With a landlord, you might try limiting your obligations in terms of late fees and back rent.
  7. 7
    Make an agreement with the borrower. As a guarantor, you won’t have direct control over the borrower’s loan repayments. It’s a good idea to draft a contract between yourself and the borrower. In this contract, you can require the borrower to keep you apprised of their financial obligations, such as notifying you if they take out another loan. You may also want to get written permission to see how much money is in the borrower’s accounts.
    • Additionally, you can list terms regarding what parts of the loan you are limited to. Be sure to include this information into the contract with the lender, as well.
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Method 3
Method 3 of 3:

Considering the Risks of Guaranteeing

  1. 1
    Accept that you are financially liable. Before you complete a guarantor form, it is important that you understand your obligations. By becoming a guarantor for a loan or an apartment, you are guaranteeing to meet the financial obligations of the person you are signing for. If they fail to make their payments, the responsibility falls on you.
    • Because you have a better credit score, the lender or landlord may sue you first because you will be more likely to pay.
    • You may also be charged for any court or attorney fees as well as late charges.
  2. 2
    Realize that this could hurt your relationship. Because most people become a guarantor for close friends or family members, it may be hard for you to say no. You will need to consider whether you are comfortable supporting this person’s debts. If you assume their financial obligations or are sued, you may develop hard feelings towards this person, which could cause a rupture between you. Determine if becoming a guarantor is worth the risk of destroying this relationship.[6]
    • If you would not be willing to loan this person money, you should not become a guarantor for them.
  3. 3
    Understand the impact on your credit score. If you become a guarantor for someone, you are taking on a lot of risk for very little reward. Your credit score may receive a small bump by guaranteeing the loan. However, if the other person defaults and you are stuck with their debt, this may seriously damage your credit score. Ultimately, the small benefit of becoming a guarantor is not worth the much larger hit your credit score could take.[7]
  4. 4
    Consider an alternative to becoming a guarantor. Because being a guarantor can be so financially dangerous and complicated, you may want to consider helping in another way. Although loaning money is also fraught with issues, it does not carry any of the legal obligations that becoming a guarantor does. If the person defaults or fails to make their payments, you will only be out the money that you loaned them and not have to face the possibility of being sued or paying a much larger sum.
    • If you feel comfortable with it, you might offer to let the person stay with you instead of guaranteeing their lease
    • You might also offer to help them find a loan with a more accommodating interest rate.
  5. 5
    Cancel the guarantee to limit your liability. If the person you are a guarantor for stops making payments for the rent or loan, you’ll be responsible for the money. Typically, you can cancel the guarantee at any time. While you will still have to pay back the original amount, you won’t be responsible for any further debt incurred by the borrower.
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Expert Q&A

  • Question
    Why would someone want a guarantor to sign for them?
    Lahaina Araneta, JD
    Lahaina Araneta, JD
    Attorney at Law
    Lahaina Araneta, Esq. is an Immigration Attorney for Orange County, California with over 6 years of experience. She received her JD from Loyola Law School in 2012. In law school, she participated in the immigrant justice practicum and served as a volunteer with several nonprofit agencies.
    Lahaina Araneta, JD
    Attorney at Law
    Expert Answer
    They may not qualify to obtain the loan if they are not credit worthy. With a guarantor, they will have an easier time obtaining the loan.
  • Question
    I signed my daughter's apartment lease as a guarantor. However, the lease did not describe my responsibilities, there wasn't a separate guarantor agreement, and my signature was not notarized. Am I still responsible?
    Lahaina Araneta, JD
    Lahaina Araneta, JD
    Attorney at Law
    Lahaina Araneta, Esq. is an Immigration Attorney for Orange County, California with over 6 years of experience. She received her JD from Loyola Law School in 2012. In law school, she participated in the immigrant justice practicum and served as a volunteer with several nonprofit agencies.
    Lahaina Araneta, JD
    Attorney at Law
    Expert Answer
    Most likely, yes. It depends on the case law of your jurisdiction, so do online research or speak to an attorney to find out for sure.
  • Question
    Do I have to give my social security number?
    Lahaina Araneta, JD
    Lahaina Araneta, JD
    Attorney at Law
    Lahaina Araneta, Esq. is an Immigration Attorney for Orange County, California with over 6 years of experience. She received her JD from Loyola Law School in 2012. In law school, she participated in the immigrant justice practicum and served as a volunteer with several nonprofit agencies.
    Lahaina Araneta, JD
    Attorney at Law
    Expert Answer
    Probably. It depends on the lender and what they require. Speak to the lender to find out for sure.
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About This Article

Lahaina Araneta, JD
Co-authored by:
Attorney at Law
This article was co-authored by Lahaina Araneta, JD. Lahaina Araneta, Esq. is an Immigration Attorney for Orange County, California with over 6 years of experience. She received her JD from Loyola Law School in 2012. In law school, she participated in the immigrant justice practicum and served as a volunteer with several nonprofit agencies. This article has been viewed 58,868 times.
12 votes - 42%
Co-authors: 9
Updated: December 12, 2022
Views: 58,868
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