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As with a co-signer, the risks lie primarily with the guarantor. If youre a guarantor, you might have to shoulder a financial burden on behalf of the borrower, which can be a challenge even for someone with high credit scores. Still, youll have the satisfaction of enabling a loved ones access to important credit.
Honestly, a 580 credit score wont prevent you from renting in most cases. Its possible to get a mortgage or an unsecured credit card with a 580 credit score, after all. If you have a job and can offer to make a larger than normal deposit, I can almost guarantee that someone will rent to you.
However, you should only be a guarantor for someone you trust and are willing and able to cover the repayments for. To be a guarantor youll need to be over 21 years old, with a good credit history and financial stability. If youre a homeowner, this will add credibility to the application.
On average, the guaranty fee for U.S. parties will approximate 70% - 90% of a months rent for the one year lease guaranty. Average guaranty fees for non U.S. parties without U.S. based credit history will approximate 98% - 110% of a months rent for the one year lease guaranty.
No, not every buildingbut many do, and were adding more every day.
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Financial Requirements For example, if the rent is $1,500 a month, the guarantor might need to earn at least $120,000 a year. Credit Score: As we mentioned above, a good credit history is crucial for guarantors. Landlords often look for a credit score of 700 or higher.
If a prospective renter doesnt meet those criteria, they should consider finding a guarantor who has a credit score of 700 or higher and an annual income of at least 80 times the monthly rent. For example, if the rent is $2,000 a month, the guarantor would need to make at least $160,000 a year.

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