Being a guarantor is risky. Remember that if you fall behind on your repayments the guarantor is then liable to repay the loan. If this situation occurs and it is something the guarantor is unable to fulfil, they may find that their credit history will be affected. This would negatively impact their future financial options such as applying for a loan themselves, credit cards or a mortgage. Therefore, before asking a guarantor for security on the funds you’re looking to borrow, be sure to consider the following: Why do you need a guarantor? Would your guarantor be willing, and able, to pay back the loan if the borrower is unable to do so? Are you willing to risk your personal relationship with this person, should the agreement not end well?