Guarantor: meaning, definitions and examples

A guarantor is someone who agrees to pay a borrower's debt if they default on a loan or credit agreement. This term is often used in financial contexts, such as loans, rentals, or mortgages.

• The student needed a guarantor for her apartment lease.
• If you can't pay your loan, your guarantor will be responsible for it.

Surety refers to a person or company that takes responsibility for another's performance of an undertaking, especially ensuring payment of a debt. It is often used in legal and financial contexts.

• The contractor needed to provide a surety bond before starting the project.
• If the contractor fails to complete the work, the surety will cover the costs.

A cosigner is someone who signs with another person on a loan agreement, showing their willingness to repay the debt if the borrower fails to do so. The term is commonly used for student loans, mortgages, and car loans.

• He asked his father to be a cosigner for his car loan.
• Without a cosigner, it may be difficult to get approved for that student loan.

An underwriter is an individual or company that assesses and assumes the risk of another party in exchange for a fee, often in the context of insurance, securities, or loans.

• The underwriter evaluated the risk before approving the loan.
• Insurance companies often employ underwriters to determine coverage policies.