What context can I use each word in?
Learn when and how to use these words with these examples!
guarantor
Example
My father acted as a guarantor for my car loan. [guarantor: noun]
Example
The landlord required a guarantor for the lease agreement. [guarantor: noun]
underwriter
Example
The insurance underwriter assessed the risk and set the premium accordingly. [underwriter: noun]
Example
The investment bank acted as an underwriter for the initial public offering. [underwriter: noun]
Good things to know
Which word is more common?
Guarantor is more commonly used in everyday language, particularly in the context of rental agreements and small loans. Underwriter is more commonly used in the financial industry and larger financial transactions.
What’s the difference in the tone of formality between guarantor and underwriter?
Underwriter is a more formal term than guarantor, as it is primarily used in the financial industry and involves assuming financial risk for a fee. Guarantor is more versatile and can be used in both formal and informal contexts.
