A guarantor is an individual who agrees to take responsibility for another person’s loan or financial obligation if that person cannot meet their payments. Acting as a backup, a guarantor reassures the lender that the debt will be repaid, making loans less risky for lenders and often easier to obtain for borrowers. Usually, guarantors are family members or close friends who trust the borrower’s reliability. Having a guarantor can improve the borrower’s chances of securing better loan terms, especially when credit history is limited.