A guarantor is a person or entity that agrees to take responsibility for another party's financial obligations, such as a loan or lease. If the primary borrower fails to make payments, the guarantor is legally obligated to cover those costs. This arrangement provides lenders or landlords with added security, reducing their risk. Typically, a guarantor is someone with a strong credit history and financial stability, like a family member or close friend. In rental agreements, having a guarantor can help individuals with limited credit history or income secure housing, as it assures the landlord that rent will be paid.