Throughout my whole life I have always thought that if you "vouch" for someone, then you are telling people that you trust that person. You also agree to take responsibility for that persons actions.

Now to my question. If you "vouch" for someone that they are trustworthy and they take a loan, is the person who vouched putting their reputation on the line? If you didn't trust a person to repay, why would you "vouch" for them?

Curious to see what others say about this.