brand_logo
search_icon
Search
AccommodationNewsroomContact UsContact UsLogoutLogin
Search
Search
£20 cashback on the app!
4.5/5
180K+ Downloads
Download App
Log in or sign up
Please provide a valid email address
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Enter code sent on your email
test@test.com
Change
Please provide a valid OTP
Haven’t received the OTP
Resend (15s)
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
or
By signing in you agree to our Privacy Policy and Terms & Conditions

Guarantor Vs. Cosigner: What’s The Difference?

Living
6 min
|
Uploaded on
Jun 18, 2024
|
Last updated on
Jan 28, 2025
Uploaded on
Jun 18, 2024
|
Last updated on
Jan 28, 2025

Share :

Copy Link

Link Copied

Share on Facebook

Share on Twitter

Share on LinkedIn

Guarantor Vs. Cosigner: What’s The Difference?
Who is Better?

While researching your accommodation options, you may have encountered terms like rent guarantor vs cosigner. Cosigner and a guarantor are the second individuals signing a rent contract with the tenant. Generally, these two terms are used interchangeably. However, when it comes to renting an apartment, there's a lot of difference between cosigner and guarantors. So let's find out what the guarantor vs cosigner debate is about. But before looking into the difference between cosigner and guarantor let’s find out what both terms stand for. Let’s dive into the blog and get the answers to guarantor vs cosigner!

What is a Guarantor?

A rent guarantor vouches for a tenant and takes financial responsibility for the rent if the tenant cannot pay. By signing the contract alongside the tenant, the guarantor agrees to cover any rental obligations, such as missed rent payments or damages to the unit. However, it's important to note that despite this financial commitment, guarantors do not possess any tenancy rights over the rented property. They are not permitted to reside in the unit they have guaranteed. Guarantors can be family members, local guardians, parents, friends, or even third-party service providers. They are typically required to have a steady income and collateral to qualify as a guarantor. Usually, a guarantor needs to have a steady income and collateral. In case of missed payments, the guarantor will lose their collateral, thus straining their relationship with the tenant. 

Don’t stress about paperwork, find your ideal student housing with amber.

Book through amber today!

Visit Us

What is a Cosigner?

Like a rent guarantor, cosigners are responsible for paying rent in the pre-decided time frame. But, a cosigner has tenancy rights, unlike a guarantor. A cosigner can thus live in the unit with the tenant after signing the contract. Guarantors are only responsible for the rent if the tenant fails to pay, but cosigners are involved more directly. 

The cosigner can be anyone willing to split the expenses of the rent, repair, or any maintenance fees that are decided during the contract. A family member, a friend, a parent, or a roommate can sign a lease agreement as a cosigner. Since cosigners are legally responsible for the rent payment, missed payments will reflect on both the tenant's and cosigner's credit history.

When Should You Get a Guarantor vs Cosigner?

If you are an international student attempting to rent an apartment but encounter challenges, having a guarantor for apartments or a cosigner can assist you in meeting the requirements. After signing the lease alongside you, your guarantor on a lease or your cosigner will assume legal responsibility for the financial obligations. So, how do you choose one of these options in a guarantor vs cosigner situation? We have answered your queries specifically about when to get a guarantor or when to get a cosigner:

When to Get a Guarantor?

Getting a guarantor can be a good idea if you don't want to share your space but need someone to back you up so you can qualify for the tenancy. Guarantors have a full rental responsibility if the tenant can't pay up. If you are an international student and it's your first time living in a new country, a rent guarantor can provide you with more security against sudden evictions. The property owner may even ask the guarantor to keep collateral to ensure regular payments. 

When to Get a Cosigner?

A cosigner might seem like a great option if you are renting an apartment for the first time and have no credit history. On the other hand, if you choose to live with a roommate and are ready to share your space with them, your roommate can sign the agreement as a cosigner. 

As a cosigner, your roommate will be responsible for paying their share of the rent, security deposit, and any fees associated with the lease. In return, you will also act as their cosigner and share their responsibilities. 

However, one of the biggest drawbacks of getting a cosigner is that you will have to pay all the rent if they can't pay their share. Paying only your share of the rent will not work, and you will still have to face eviction. 

Third-Party Rent Guarantors 

If you are an international student, especially finding a rent guarantor in the UK,  may be challenging for you in a new country. One of the key requirements when seeking a guarantor for apartments is that they must be located in the same country where you intend to rent the apartment. 

Not all international students can have someone already living in the country of their choice. In such scenarios, hiring a third-party rent guarantor is a great idea you can opt for. Third-party rent guarantors do not qualify exactly as traditional rent guarantors, i.e., friends, family, or guardians. These services provide a guarantee or insurance that ensures the owner receives the rent in case the tenant cannot pay it. 

Your landlord may even specifically require a guarantor if you: 

1. Have a poor credit score
2. Lack of credit history
3. Are you renting an apartment for the first time? 
4. Lack of steady income history
5. Do not earn at least three times the monthly rent

Difference Between Guarantor and Cosigner

A guarantor and a cosigner both take on responsibility for a loan or rental agreement, but their roles differ in certain ways. But the basic difference is that the guarantor acts as a backup for the tenant while the cosigner tends to be more directly responsible. Below are some of the major pros and cons of being a guarantor and the pros and cons of being a cosigner:

Table 1
Criteria
Guarantor Cosigner
Pros Limited liability: Only responsible if the primary party defaults Helps the primary borrower qualify for credit

No direct legal obligation: Not a party to the original agreement
Shares the repayment obligation from the start
Cons
Potential financial burden: Responsible for full debt if the borrower defaults
Equal legal responsibility: Liable for the full debt from the beginning

Impact on credit applications: Potential debt may affect ability to obtain credit
Negative credit impact: Missed payments can harm credit score
Made with HTML Tables

Guarantor vs Cosigner: Rental Lease Commonality

Since a guarantor vs cosigner both ultimately serve the same purpose, i.e., ensuring the rent is paid timely, there's no clear preference between the two. The choice solely depends on your negotiation skills and the property owner you are dealing with. For convenience, most property owners already have agreement templates for both situations. 

How Does a Landlord Screen a Lease Guarantor and Cosigner?

Property owners usually have a very simple screening process for guarantors and cosigners. The process includes a tenancy application form that is supposed to be filled out by the tenant. The form holds information about the tenant's credit history, criminal history status, income information, etc., along with the details of how to find a rent guarantor. After filling out the form, the property owner decides if you are eligible for the tenancy and if your guarantor or cosigner is eligible for the role. 

Find trusted guarantor services and secure your amber student accommodation with ease!

Book through amber today!

Visit Us

Whom Does Landlord Prioritize as Tenants: Without Guarantors vs Cosigners?

When it comes to considering potential tenants, landlords generally have the discretion to evaluate applicants based on their individual preferences and criteria. However, some common factors can influence a landlord's decision regarding tenants with or without guarantors or cosigners.

Most landlords are likely to prioritize tenants who can demonstrate a stable financial situation and the ability to consistently make rent payments without the need for a guarantor vs cosigner. These tenants represent a lower risk and require less administrative overhead. On the other hand, tenants who require a guarantor vs cosigner may be viewed as slightly riskier, as the landlord needs to rely on a third party to ensure rent payments are made. 

Both cosigners vs guarantors are a great option for an international student renting an apartment. A guarantor and a cosigner will sign your agreement and be liable for the rent payments. 

However, the primary difference between  cosigner and guarantor is that the first one is responsible from day one, while the latter only comes into play when the tenant cannot pay. So, assess your needs and choose what's best for you! If you are interested in learning more about student rent, read our blogs on Private Residential Tenancy (PRT), a legal agreement governing private rental properties. You can also read out different ways to spot a rental scam and whether we can rent an apartment using a student loan. Happy learning!

Frequently Asked Questions

What is the difference between a guarantor and co-applicant?

A guarantor ensures loan repayment if the borrower defaults, while a co-applicant shares responsibility and benefits of the loan.

What are the legal implications of being a guarantor or cosigner?

Both guarantors and cosigners are legally obligated to repay the loan if the primary borrower defaults.

Does having a guarantor or cosigner affect my chances of loan approval?

Yes, having a guarantor or cosigner can improve your chances of loan approval by reducing the lender's risk

What happens if a guarantor or cosigner defaults?

If a guarantor or cosigner defaults, their credit score suffers, and the lender may take legal action to recover the debt.

Can a guarantor or cosigner help improve my credit score?

Yes, timely loan repayments with a guarantor or cosigner can improve your credit score.

Are there any specific requirements for being a guarantor or cosigner?

Requirements typically include a good credit score, stable income, and financial stability.

How does having a guarantor or cosigner affect interest rates?

Having a guarantor or cosigner can lead to lower interest rates due to reduced risk for the lender.

Unlock your free flight ticket

Your ideal student home & a flight ticket awaits

Claim now
Housing

Follow us on :

share-insta-icon

Instagram

Facebook

share-tw-icon

Twitter

share-linkedIn-icon

LinkedIn

Copy Link

Share on Facebook

Twitter-share

Share on Twitter

LinkedIn-share

Share on LinkedIn

copy-icon

Share

Share Now:

Copy Link

Link Copied

Facebook

Twitter

LinkedIn

cta
cta

Related Posts

Living

10 Best Suburbs in Canberra to Move to in 2025

April 24, 2025
|
5 min
Living

The Cheapest Cities to Live in Spain

April 23, 2025
|
6 minutes
Living

Best Places to Reside in Georgia for Students

April 22, 2025
|
5 MIN
Get access to exclusive deals
Only the best deals reach your inbox
Thank you for subscribing to Amber's Updates
Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
London
United Kingdom
Dublin
Ireland
Melbourne
Australia
New York City
United States
Frankfurt
Germany
Barcelona
Spain
Toronto
Canada
Birmingham
United Kingdom
Brisbane
Australia
Chicago
United States
Cork
Ireland
Hamburg
Germany
Montreal
Canada
Leicester
United Kingdom
Sydney
Australia
Austin
United States
Vancouver
Canada
Nottingham
United Kingdom
Adelaide
Australia
Houston
United States
Liverpool
United Kingdom
Perth
Australia
San Francisco
United States
Coventry
United Kingdom
Canberra
Australia
Boston
United States
Sheffield
United Kingdom
Gold Coast
Australia
Dallas
United States
Leeds
United Kingdom
Coffs Harbour
Australia
Washington DC
United States
Newcastle Upon Tyne
United Kingdom
Philadelphia
United States
Manchester
United Kingdom
College Station
United States
Cardiff
United Kingdom
Los Angeles
United States
Swansea
United Kingdom
Lubbock
United States
arrow
Guarantor Vs. Cosigner: What’s The Difference?
6 min
You'll love these as well
Similar
arrow
Private-Public Partnership
Is Private-Public Partnership the Future of Student Housing Development
Apr 29, 2025
|
Living
|
4 min read
Best Places to Reside in Georgia for Students & Professionals
Best Places to Reside in Georgia for Students
Apr 17, 2025
|
Living
|
5 MIN
Best Suburbs in Gold Coast
Top 10 Best Suburbs in Gold Coast for Students
Dec 21, 2024
|
Living
|
5 min
Cost of Living in Australia
Your Guide to Cost of Living in Australia
Dec 17, 2024
|
Living
|
10 MINS
The Top 12 Safest Neighborhoods in Philadelphia for Students
The Top 12 Safest Neighborhoods in Philadelphia for Students
Nov 13, 2024
|
Living
|
11 min read
The 10 Best Apartments near USC: Comfort and Convenience Combined!
The 10 Best Apartments near USC: Comfort and Convenience Combined!
Oct 29, 2024
|
Living
|
8 min read
Tab 1
Tab 2
Tab 3
Tab 4
Tab 5
Tab 6
Tab 7

amber © 2024. All rights reserved.

4.6/5 on Trustpilot

Rated as "Excellent" • 5000+ Reviews by students

Trustpilot
Get the app
Payment Options
Company
AboutHow it worksRefer a friendGroup BookingNewList with usNewPartner with usNewCareersWe are hiring!
Discover
BlogPodcastNewsroomAmber PlusMedia MentionAmbassadorScholarshipsApply NowExamsNewSite Map
Support
Help CentreContact UsT&CPrivacy PolicySitemap
Contact Us
+44 7400314942
contact@amberstudent.com
WhatsApp
40 E Main St # 1215 Newark 19711-4639 Delaware
Follow us on:

amber © 2024. All rights reserved.

4.6/5 on Trustpilot

Rated as "Excellent" • 5000+ Reviews by Students

Trustpilot
Get the app
Payment Options:
Company
AboutHow it worksRefer a friendGroup BookingNewList with usNewPartner with usNewCareersWe are hiring!Site Map
Discover
BlogPodcastNewsroomAmber PlusMedia MentionAmbassadorScholarshipsApply NowExamsNewSite Map
Support
Help CentreContact UsT&CPrivacy PolicySitemap
Contact us
+44 7400314942
contact@amberstudent.com
WhatsApp
40 E Main St # 1215 Newark 19711-4639 Delaware
Follow us on:

amber © 2024. All rights reserved.

4.6/5 on Trustpilot

Rated as "Excellent" • 5000+ Reviews by Students

Trustpilot
Get the app
Payment Options:
Company
AboutHow it worksRefer a friendGroup BookingNewList with usNewPartner with usNewCareersWe are hiring!Site Map
Discover
BlogPodcastNewsroomAmber PlusMedia MentionAmbassadorScholarshipsApply NowExamsNewSite Map
Support
Help CentreContact UsT&CPrivacy PolicySitemap
Contact us
+44 7400314942
contact@amberstudent.com
WhatsApp
40 E Main St # 1215 Newark 19711-4639 Delaware
Follow us on:
Download the amber app
Start your journey from here!
More than 1.25 million beds available in 600 cities
Scan The QR to download the App
app QR
You can directly download from
play storeapp store
100% Verified Listings
Quick and Easy Bookings
Price Match Guarantee
24x7 Personal Assistance
£20 cashback on the app!
Scan to Download App
4.5/5
180K+ Downloads
Download from
Share