Rent and Credit > What being a rent guarantor involves

What being a rent guarantor involves

Wollit Team2 minute read · Updated 29th July 2024

A rent guarantor is someone who agrees to pay the rent if the tenant is unable to do so. Landlords often require a guarantor, especially for tenants with limited rental history, low income, or poor credit.

Being a guarantor isn’t something to be taken lightly: the guarantor is legally and financially responsible for the tenant's rent and any damages to the property.

If I ask someone to be my rent guarantor, what are their responsibilities?

A guarantor has quite a few responsibilities. The main one, of course, is to pay the rent if you fail to do so. If you miss a rent payment, they will be obligated to cover the full amount, including any late fees or legal costs.

Depending on the agreement, the guarantor may also be liable for any damages caused by you – the tenant – to the rental property.

This is why, if you add a guarantor, you’ll have to sign not only a tenancy agreement, but also a guarantor agreement, which will outline their responsibilities in detail.

What are the requirements to be a rent guarantor?

To qualify as a rent guarantor, the person you’re going to ask needs to meet the following requirements:

They must be at least 18 years old.
They must have a stable income so they can cover the rent if needed.
They also need to have a good credit history.
Finally, they’re also a UK resident. Most landlords prefer a guarantor who lives here, as it simplifies legal and financial aspects.

Once you’ve found someone suitable, they’ll need to meet the landlord, pass a credit check, and, if everything is OK, sign the guarantor and tenancy agreement.

Does someone being a guarantor affect their credit score?

No, being a rent guarantor does not affect their credit score. Unlike a guarantor for a loan, being a guarantor for rent does not show up on their credit report. This is true even if you choose to report your rent payments to the credit agencies – the details of your guarantor are not included there.

This being said, being a guarantor does come with a potential financial burden, especially if you fail to pay your rent on time or if you damage the property.

How can I rent without a guarantor?

The best way to rent without a guarantor is to show to the landlord or letting agency that you are a responsible tenant and that you will be able to cover your rent.

Here are a few ways you can achieve this:

Save for a bigger deposit or pay more months in advance.
Sign up for tenants insurance so that your landlord can be reimbursed easily in case of potential damage.
Get a recommendation letter from your employer (or accountant if you’re self-employed).
Get a recommendation letter from your previous landlord.
Add your current rent payments to your credit report. This is one of the easiest ways to show landlords that you pay your rent on time.
Work on improving your credit score so you can pass a credit check. This is especially important if you’re new to the UK and have no credit history here or a thin credit file.

Luckily, now there are many apps that can help you build and improve credit. One such app is Wollit.

Wollit is a credit-building app that works by reporting a fixed fee monthly subscription to the main credit reference agencies (Experian, Equifax, and TransUnion). This helps you build or rebuild your credit history by showing that you can pay debt on time.

On top of this, it can also report your monthly rent payment to Experian as part of the same subscription, adding another line in your credit report that shows both landlords and lenders you're responsible and pay your bills when they’re due. In time, this will help you improve your credit file so you won’t need to be worried about credit checks – regardless if they're for renting or taking out loans.