Guarantors are people that agree to repay a loan in cases when the borrower is not able to do so. If you decide to be liable for another person, there is a chance that it will limit your borrowing ability. You have to be very careful when agreeing to ne a guarantor for someone. The decision has to be made after every aspect is taken into consideration. First, you have to be sure that the borrower will and can repay the loan. If he or she is not able to repay the loan, you will have to think through all possible outcomes and how that will affect you and your finances. It is always a good idea to consult with a lawyer and search a good legal advice on matters like this. You have to be able to understand what your obligations are before you make an agreement to act as a guarantor. Guarantor loans are very popular nowadays. The main reason is because people are not able to obtain a normal credit because of their poor credit ratings. The economic crisis is partly responsible for this. People are turning to new alternatives to get money. However, usually the people that are applying for a guarantor loan have enough financial assets to repay the loan. Being a guarantor sometimes is just a formality and a name on the loan contract. In any case, you have to be able to meet your responsibilities if something goes wrong. It is a risky job, but it is also a noble thing because you have the chance to help someone out.