What is one of the benefits of a guarantor for a loan?

Having a guarantor for a loan significantly bolsters the chances of securing loan approval. This is primarily because a guarantor provides an added layer of security for the lender. When a person or entity agrees to guarantee a loan, they are essentially promising to repay the loan if the primary borrower fails to do so. This assurance lowers the lender's risk, making them more likely to approve the loan application. With a guarantor, lenders often feel more comfortable lending to individuals who may have limited credit history or lower credit scores, as the guarantor's stronger financial standing can offset the potential risk associated with the applicant. Thus, the presence of a guarantor can be a decisive factor in obtaining financing.