Is it better to have a Cosigner or Guarantor?

"Cosigner" and "guarantor" are two words. Their meaning depends on how they are defined and used in your notes (unless state law defines them for you.) If you have limited the actions you will take to collect from a "guarantor" (such as first exhausting efforts to collect from primary borrowers), then you are in better position if you have the second party sign as a primary borrower.

First published on BankersOnline.com 10/03/05