Guarantor Loans.

On a firm financial footing but got a poor credit history?

If you can find someone suitable to support your application then a guarantor loan is an option.

Get a little help from your friends and get back on track.

The quickest way to find the right loan

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Representative 49.9% APR. Representative Example: If you borrow £1,000 over 12 months at a representative rate of 49.9% APR and an annual interest rate of 49.9% (variable), you would pay 12 monthly instalments of £103.06. The total charge for credit will be £236.72 and the total amount payable will be £1236.72.

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Guarantor loans for bad credit

If you’re looking for a way to borrow money and your credit history isn't great then a guarantor loan is well worth a look.

To apply for a guarantor loan you’ll need someone suitable to support your loan application which means you will pay less in interest in comparison to most other bad credit loan options.

You’ll pretty much always be accepted by lenders as long as you choose wisely before applying for a guarantor loan.

Compare bad credit guarantor loans with Choose Wisely

Refused credit or been declined a loan because of a poor credit history? Use the table above to compare the best UK guarantor loan providers to get a deal that’s right for you.

What is a guarantor loan?

A guarantor loan works in the same as any other unsecured loan. The only difference with a guarantor loan is that a reliable friend or family member must agree to pay back the amount of money you owe if you're unable to. This makes a guarantor loan an realistic option if you are unemployed, receiving benefits or have a default or CCJ on your credit file.

Still unsure? This video sums up everything you need to know about guarantor loans in less than 2 minutes:

Reading more your thing? Check out our expert guide “Everything You Need To Know About Guarantor Loans“.

What is a guarantor?

A guarantor is someone who “guarantees” to repay your loan if you can’t. This person is usually a friend of family member.

Who can be my guarantor?

Each UK guarantor loan provider will have different rules about who they will and will not accept as a guarantor so it’s worth doing your research to find out exactly what the specific requirements are before you start your application.

As a minimum your guarantor will need to:

  • Trust you
  • Have a good credit history
  • Prove that they could afford to make repayments on your behalf if they need to.

Is your guarantor a homeowner? A note on non-homeowner guarantor loans

If you apply for a guarantor loan for bad credit the lender may ask if your guarantor owns a home.

Sometimes having a homeowner guarantor will be part of what you’ll need to be accepted for a guarantor loan, other times it may just mean that you can borrow more if you have a history of bad credit

There are plenty of non-homeowner guarantor loan options available but it’s worth checking whether you need a homeowner before you start your application.

Will I be eligible for a guarantor loan?

Each lender is different but having a suitable guarantor is a must.

You’ll need to be at least 18 and show that you can afford to pay back what you borrow. If you tick those boxes then the majority of guarantor loan providers should be able to help.

Use the Choose Wisely smart loan search to find out who will accept your application.

The golden rules of guarantor loans

  • Do not apply if you’re not 100% sure you can afford to repay it
  • Compare your options before you apply to get the best deal
  • Make sure your guarantor fully understands what they’re committing to before you apply for your guarantor loan

How much can I borrow with a guarantor loan?

Again this depends on the lender and what they can offer you. Typically, guarantor loan amounts stretch from £500 to £15,000.

Will a guarantor loan affect my credit rating?

Yes, applying for a guarantor loan will impact your credit rating. That’s why it’s so important to compare your options and choose wisely so you make the right choice first time. Find out about borrowing with poor credit with our expert guide “The Ultimate Guide To Borrowing With Bad Credit“.

How much will a guarantor loan cost me?

Guarantor lenders offer between £50 and £7,500 with APRs ranging from 39.9% to 199%.

At first glance, those numbers may seem high, but when you consider that the guarantor lenders won't discriminate against you based on:

  • CCJs
  • Defaults
  • Late payments
  • Missed payments
  • Credit score

...Guarantor loans are actually some of the lowest rates that you’ll find on the bad credit loans market.

Guarantor loans if you have bad credit

If you have poor credit, you’re a higher risk to any lender, which means they would need to charge more interest.

If you have a history of CCJ’s, defaults or late payments you can expect guarantor loan APRs to be more than 39.9%.

Guarantor Loans range between 39.9% - 59.9% APR.

Although this is more expensive than what you’d find on the high-street, it’s pretty reasonable in comparison to other shorter term bad credit options on the market. Looking for more bad credit loan options? Visit the Choose Wisely bad credit loans comparison table

Guarantor Loans Criteria

Aside from needing to provide a suitable guarantor, there are several guarantor loan requirements that you’ll need to meet:

  • You’ll need to be over 18
  • Not currently on an Individual Voluntary Arrangement
  • Not bankrupt
Most guarantor loan lenders will accept you if you’re a discharged bankrupt.

Details on all guarantor providers can be founf in the Choose Wisely loans library .

Loans without a guarantor - What is a ‘no guarantor loan'?

Guarantor loans are a solution suited to people with a very specific set of circumstances. If you have a bad credit history but are now on a stable financial footing, then guarantor loans are worth considering. But what if you can't find a guarantor? Well your options do become more limited but you do have options.You can compare these options in the Choose Wisely no guarantor loans comparison table.

Warning: Late repayment can cause you serious money problems. For help, go to