What is a personal loan guarantor loan and what happens if the borrower misses payments?

14 Sept 2026, 00:27
Q A Reader Asker

What is a personal loan guarantor loan and what happens if the borrower misses payments?

A PoundWise Team Answered by

A personal loan guarantor loan is borrowing where another person agrees to repay the debt if the borrower fails to do so. The guarantor could be asked to cover missed payments, interest and other charges, and their credit record may be affected if the account falls into arrears. Both people should check the agreement carefully and consider whether the repayments are affordable, as the lender may take legal action if the debt remains unpaid. Compare options with an FCA-authorised lender and seek free debt guidance if you are unsure.

This Q&A is editorial content produced by the PoundWise team. It does not guarantee any individual outcome.
Q&A Contact