Guarantor Loans

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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 People with 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? Compare our range of direct guarantor loan lenders to get a deal that’s right for you.

Eligibility Checker
  • Takes less than 1 minute to complete
  • Soft search - won’t impact your credit score
  • Check with all guarantor loan lenders
  • Apply Now!
  • Borrow from £100 to £5000
  • Fill in one quick and simple form
  • Compare guarantor loan lenders who have already accepted you
  • Apply Now!
Warning: Late repayment can cause you serious money problems. For help, go to
Representative 49.9% APR. Representative Example: Borrowing £1,000 over 12 months, repaying £103.06 per month, total repayable £1,236.72. Interest rate 49.9% (variable).

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 are unable to.

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 guarantor loan direct lender 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 guarantor loan application.

They 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 when picking your guarantor, before starting your guarantor loan 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.

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.

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 short term loans for bad credit 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.

The Acceptance Criteria - what you’ll need to be accepted for a guarantor loan

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.

What is a ‘No Guarantor Loan’ - Can I get a bad credit loan without a guarantor?

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.

However, if you think you're not likely to be able to make your repayments, don't put a friend or family member in the position where they will have to pick up the bill for you.

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

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