Loan Backed by a Guarantor If you are now financially stable but your credit score isn’t, you may still get approved for a loan if you have a guarantor. This will remove the risk-factor associated with lending you money. You will need to make sure that your guarantor has an excellent credit score. However, note that if you default on this loan too, your guarantor will have to repay the outstanding balance. Also, their credit score will take a hit in case of default on your part. This is why many are apprehensive about being guarantors for loans home loans , mortgage loan , loan against property , housing loan , home construction loan , flat purchase loans , mortgage loan process