At the time that a person acquires a loan or debt, the entity responsible for issuing the loan with the sole purpose of ensuring the payment of the claim, assess and review the applicant’s borrowing capacity, make sure that another person supports this debt, with either a guarantor or co-signer, being these two completely different legal figures, as they are not the same in spite of pursuing the same goal, which is to support the debt of another person with the difference that can be made effective so different, so now we will talk about each of them:
- A guarantor: a person who undertakes a subsidiary to comply with the obligation to another person, that is to say the main debtor, in the event that this does not do so.
In other words, the guarantor is a debtor in second place and therefore the creditor who is the person who gives the credit (bank) will not be able to claim directly to the surety for breach of the debt, as well as the guarantor has a legal action called “choir book” which allows you to tell the creditor that seeks first the debtor to meet the commitment that you purchased.
Once the debtor has nothing with which to pay, or the bank has nothing so collect the debt, if the financial institution will be able to make effective the guarantee and require a payment to the guarantor.
- A co-signer: A person who in addition to supporting the payments of the debt of a person in a spirit of solidarity, that is to say, under the same conditions as a principal debtor, the creditor may charge you to either of the two at the time that there is a breach of obligations and the two will have to respond without having a chance to be able to take shelter of any benefit, nor demand that it be copper first to the principal, since it is the creditor who decides on who to begin legal action relevant to payment of that debt.
We hope that this information provided by our financial institution FNBNorcal.com has served as a great help to all the people who were somewhat confused with the difference that exists between a guarantor or a co-signer. If you need some type of custom information on any subject related to the financial products that we have available, then we invite you to contact our customer service staff.