Because it is another person whose credit record is being searched it means that you are not going to be credit scored yourself. It is very important for those people who seek to recover that rating that these records will not be pored over yet again. With loans that require a guarantor in this way your credit record will not be looked at over and over, raising possible red flags. Then by paying off the loan you will see that your credit rating will get better as a matter of course making it much more easy to get credit on your own account in future.
Those who apply for loans that require a guarantor will do so knowing that they then have access to easy credit generally within 3 days of applying. You can pay back the loan before term if you wish without redemption fees. The loan may be used for any purpose in most cases and there are some insurance options available in certain circumstances.
The idea of loans that require a guarantor resulted from fallout due to the credit crunch of recent times. Something needed to change allowing ordinary people with bad credit scores to borrow money. The solution was the guarantor loan which has proved itself to be popular.