Learn what a guarantor is and why you may need one when renting an apartment. Understand the requirements and what you can do if you don't have a guarantor.
You might have heard the word "guarantor" when a rental agent told you will need one or you might have seen the word on a rental application.
A guarantor guarantees your lease, by promising that if you fall behind on payments, they will also be responsible for the payments.
Sounds great, right?
It is great because it can allow you to get your desired apartment even without the right credentials-meaning the right amount of income and/or credit score.
The situation can become sticky if you actually do miss the rent. Depending on who the guarantor is, you may leave them with a bad taste in their mouth.
If you have either bad credit or no credit, it's a given that bringing in a guarantor will be required if you want to get the apartment.
Another situation you may be asked for one is if you do not annually make 40 times the monthly rent--meaning you do not make enough money.
At times, you may be asked for a guarantor if you are just shy of the qualification standards or even if you meet them, but something in your profile causes doubt.
This can be anything from an old collection on your credit report to changes in your income or income fluctuations from year to year.
Most people who find themselves in this situation are young people who have no credit or too short of a credit history, the self-employed, or foreign nationals with no credit.
If you receive your pay annually or quarterly, it can also affect your chances of getting an apartment in a straightforward manner.
If you have poor credit, this shouldn't be a sign to give up.
Using a guarantor can give you some time to build your credit back up.
For more details on how you can bolster your score back up, read up on our article on how to improve your score. It offers information on long-term growth as well as fast boosts.
