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Guaranty Agreement a two-party contract in which the first party agrees to perform in the event that a second party fails to perform. Unlike a surety, a guarantor is only required to perform after the obligee has made every reasonable and legal effort to force the principals performance.
When you cosign on a lease, youre making a legal promise to uphold the terms of the lease and to pay rent if the lessee does not. As a cosigner, your credit could be affected whether or not the person youre cosigning with pays their rent. This uncertainty makes cosigning for an apartment risky.
A cosigner on a rental property is someone who signs a lease with you and assumes equal liability for paying the rent, while a guarantor is only liable to make payments when the primary borrower cant or wont pay.
When wondering if being a guarantor affects your credit, the answer is no; being a guarantor doesnt hurt your credit score as long as the primary borrower makes the payments on time. But if the borrower defaults, the guarantor is responsible for continuing to make the payments, which can affect your credit score.
Cosigners have equal responsibility for payment of monthly rental costs, while a guarantor is generally sought for payment only when the property occupant is unable to make the rental payment.
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People also ask

Answer: Applying to be your guarantor should not impact your fathers credit score, but the landlords request will likely show up on his credit report. And its important to keep in mind that if you fail to pay your rent, and your father doesnt bail you out, then both your credit scores would be negatively affected.
Almost anyone can be a guarantor. Its often a parent or spouse (as long as you have separate bank accounts), but sometimes a friend or relative. However, you should only be a guarantor for someone you trust and are willing and able to cover the repayments for.
You may not need a guarantor if you can pass a credit check or show proof of income. If you have a poor credit history or low income, a landlord may still rent to you if you can pay some rent in advance.
You should always make sure that you can afford to rent the apartment you are applying for, but if you dont meet the necessary requirements (such as good credit) in order to rent the apartment, then getting a guarantor is a great option!
A guarantor is someone who agrees to pay your rent if you dont pay it, for example a parent or close relative. If you dont pay your landlord what you owe them, they can ask your guarantor to pay instead. If your guarantor doesnt pay, your landlord can take them to court.

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