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How does the creditor differ against the guarantor?


The creditor is the party that lends money to a counterparty. When you borrow money from the bank, the bank is thus a creditor.

The term is often mixed up with the guarantor, but there are thus two different things. A guarantor is a third person who promises to repay the debt to the creditor if you as a borrower are unable to pay.

What is a creditor?

What is a creditor?

The creditor, also called the creditor, is a natural or legal person to whom someone owes money. The person who borrows the money and has the debt is called the debtor. For example, when you apply to borrow USD 150000 from a bank, you are a debtor and the bank creditor.

By definition, therefore, all bank loans in Sweden are “loans with a creditor”, since the money is always borrowed by another party. There are also other situations where you can use a creditor, e.g. in connection with the signing of a lease for a rental right.

The word creditor is actually the most difficult word in Sweden, according to a survey by the Swedish Tax Agency – only 7% knew the correct meaning of the word.

What is a guarantor?

What is a guarantor?

If you cannot afford to take out a loan on your own, for example, to finance a home, it may be a good idea to apply for a loan with the guarantor. The bank can in some cases approve the loan if a so-called third person – often a family member or partner – agrees to pay the creditor in case the debtor is unable to pay interest and amortization.

The third person is thus the guarantor and “goes into custody” for the creditor. The same should happen if a co-borrower is used, this “third person” will thus be equally liable to pay the debt.

How does it affect me to be a guarantor?

The responsibility as a guarantor is large and applies until the debt is paid. You must, therefore, think through such a decision carefully. Even if you are married to the debtor, the obligations apply even if you were divorced.

However, it is possible to limit liability by agreeing that the liability extends to a certain maximum amount and that you are only a guarantor for a certain period of time.

Information about your commitment as a guarantor can be obtained from the credit information company. It is therefore important to remember that it will affect your chances of being granted your own loans if you are a guarantor.

Compare the banks with Good Credit

Compare the banks with Good Credit

Whether you are applying to buy a car, take a private loan or finance a project with micro-loans, it is good to compare the banks. All banks specialize in different types of customers. It is therefore not possible to say that one bank is better than another when it comes to loans. Thus, it is important to compare different loan offers to find which bank suits you best!

If you as a private individual go to several different banks to compare the terms, they each take credit information on you. This affects your credit rating and can impair your ability to get a really low-interest rate.

If you choose to compare with Good Credit, only one credit report is made. The service is completely free of charge and you do not commit to anything when you make a comparison. Instead, Good Credit gets paid directly by the bank or lender when we help them get a new satisfied customer.