Credit score: Does being a guarantor affect my credit score?

Credit scores have curated considerable influence since their introduction, with a variety of uses which could benefit or severely hamper people’s lives. People will go much of their lives without knowing they need to cultivate a healthy score, and some actions will impact it more than others.

What is a guarantor?

In credit score terms, a guarantor helps someone else get credit.

Credit can come in the form of a loan, a mortgage or anything else which requires a company to have an assurance they will get their money back.

They guarantee the person taking out the loan will eventually pay it back and take it on if the customer cannot.


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Does being a guarantor affect my credit score?

Anyone can take the role of a guarantor, as long as they trust the person listing them as such.

Those taking on the responsibility will need to be older than 21, with stable finances and a positive credit history.

Guarantors are ultimately valued by their judgement, which can affect them down the line if the person they guarantee for proves unreliable.

Their credit score will remain unblemished as long as the person they act for stays true to their side of the bargain.

However, if they fall into default, this will reflect on their overall credit report.

Defaults occur when lenders close the account of someone who has failed to make loan repayments for some time.

The missed period can span three to six months and can happen no matter how much someone owes.

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Defaults stay on people’s credit files for a total of six years, after which a lender cannot re-register them.

People in danger of default will receive a notice beforehand, requesting they catch up on their payments.

They can avoid having their account closed if they pay when they receive the note.

Should it go ahead, a default has the potential to ripple through people’s other finances.

According to, lenders check credit information to see how reliable someone is when repaying loans.

A default appears as a blemish on the record which may dissuade some lenders.

As such, getting a mortgage or other type of loan can prove difficult, and people with a default may end up taking a bad deal.

Guarantors may find their future mortgage plans also affected, as lenders will look at every aspect of their financials, and if someone they guarantee has defaulted, it will reflect badly on them.

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