19/07/2025
I just want to simplify these three terms:...
1.Guarantor
2.Surety
3.Referee
Know the gravity of each and the commitments.
A Guarantor is not a Surety and definitely not a Referee
Let’s get this straight.
A lot of people confuse these terms.
Some even think they all mean the same thing.
They don’t.
When you stand as a Guarantor, you are giving the lender a promise that you will pay if the borrower fails to pay after all steps have been taken to recover the debt from the borrower first.
The borrower must first default.
The lender must first exhaust all means to get the borrower to pay.
Only then can they come for you as the guarantor.
But when you stand as a Surety, it’s more serious. A surety provides guarantee for payment.
A surety is like saying, “If this person doesn’t pay on the due date, come straight to me. No need to chase them first.”
In other words, as a surety, you’re equally and immediately liable once there’s default.
Now, let’s talk about Referees.
Some people think being a guarantor is the same thing as being a referee.
It’s not.
A referee is simply someone who confirms that the person applying for a job, loan, apartment or apply for studies , bank reference is known to them and has good character.
That’s all.
A referee is not taking on any financial responsibility. A referee is not liable to pay any debt.They are just vouching for the person’s behaviour, not their ability to repay loans. Don't allow any person to hold u responsible for any payment. I know some of us has ran away when a family friend or colleague or siblings asked for referee.
So next time you’re asked to be a guarantor, surety, or referee understand exactly what you’re signing up for.
One carries serious financial risk.
One comes with immediate liability.
The other? Just character reference.
Be wise. Read before you sign. Don’t let friendship or emotions drag you into debt.
Thank u.
©️Dr Amb Chris
