No Guarantor? No Problem!

Written by Mark Grimley
Published on 24th August 2017
Updated on 3rd December 2019
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How do I get a loan without a guarantor?

No guarantor? No problem!

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If you’re looking to borrow money, you’ve got poor credit and you don’t have a guarantor to support your application, this video will help you understand your options and the best way to approach your search.

Before you start

So, let me guess, you started your search for credit by comparing loans, but all the best-looking results are asking you to provide a guarantor? Well, what if you haven’t got a guarantor? What’s next? If you have a poor credit history, you pose a higher risk to lenders than if your credit history was spotless, especially if you don’t have a guarantor to back you up. That’s just a fact. So when looking for a loan with poor credit, expect higher rates than the ones you’ll see advertised by the high street banks or supermarkets.

Do I really need to borrow?

The first question to ask yourself is, ‘do I really need to borrow?’. By drawing up a quick budget and noting down exactly what’s coming into and going out of your account, you may find that just stripping our any unnecessary expenditure could save you a few pounds and prevent you from having to borrow. However, if, after drawing up a budget, you still decide to borrow and are confident that you can afford any repayments, then here are some options for you to consider, that don’t require you to have a guarantor.

Option 1 - Friends and Family

It could mean an awkward conversation, but asking your family or friends for a loan could prove much cheaper than borrowing from a commercial lender. Before taking the cash, it’s worth getting any agreements down in writing, to protect you and your friendship, and make sure you’re both on the same page from the start, in case things don’t turn out exactly as planned.

Option 2 - Alternative Loans

There are a number of lenders considering applicants with poor credit which don’t require a guarantor. Yes, options are limited, especially if you’re looking to borrow over £1000, but they do exist. The key thing here is to do your research, rather than diving straight into an application. Be sure to thoroughly-check a lender’s acceptance criteria before you apply and if you have any doubt whether you can match this criteria, or afford the repayments, then steer clear.

Option 3 - Credit Cards

There are a number of credit cards out there, designed both as a way to improve your credit score and as a borrowing solution if your credit history isn’t great. The thing to be wary of here is that, while paying off your balance in full each month means you won’t pay any interest - if you do fall behind, interest can soon mount up. So if you decide to go down this route, be sure to be disciplined with your repayments and compare your options using our credit card comparison table.

Top tips

  • Work out your incomings and outgoings, then check if you can cut back to avoid borrowing.
  • Check if you could borrow from friends or family
  • Have a look at credit building credit cards which are designed for people with bad credit
  • Compare loans for people with no guarantor on the Choose Wisely comparison table

Find loans for bad credit

Have bad credit? Have a look at the full range of loans available and compare your options using the Choose Wisely comparison table.

Mark Grimley
Written by
Mark Grimley
Head of Partnerships & Take Control Author at Choose Wisely

Mark joined Choose Wisely in 2015. He continues to work in close contact with the providers, brokers and journalists operating in the world of consumer credit.