what happens if a guarantor cannot pay 
if a guarantor cannot pay both they and the tenant are liable for the obligations the lender will begin collection proceedings against both the guarantor and the tenant which will adversely impact the credit profile of both the bottom linea guarantor is an individual that agrees to pay a borrower s debt if the borrower defaults on their obligation a guarantor is not a primary party to the agreement but is considered to be an additional comfort for a lender a guarantor will have a strong credit score and earn sufficient income to meet the obligation having a guarantor on a loan agreement greatly benefits the borrower it allows for an agreement to be approved much faster and often at a higher amount in the event a borrower defaults the guarantor must meet the obligation if they do not they are still liable and can have a lawsuit brought against them for the outstanding amount they will also see a negative hit on their credit score 