4 Simple Steps to Getting a Guarantor
We look at the steps you need to take to successfully find someone
Follow these - and potential guarantors will see you’re prepared and are more likely to say “yes”
Do not follow these - and they’re more likely to say “no” so you won’t get the loan you need
Step 1 - Make a list of people
- Family members
The most common guarantors are family members such as grandparents, parents, aunts and uncles, brothers and sisters, cousins, etc.
A select few lenders also allow your spouse or partner to be your guarantor 🧑🤝🧑
They are usually someone who has known the borrower well for many years and trusts them.
- Friends and work colleagues
Other possible people include friends and work colleagues 🤝
Think of people who know you well and trust you.
- Other people
Who may fall outside of these categories who may know well, who could be suitable? Landlord etc?
Now you have your list, you now need to whittle it down to those who may qualify.
Step 2 - Qualify your list
It's likely that not everyone on your list will qualify 😒
So, take a look at the criteria they will need to meet and think if they qualify or not:
- A regular form of income - this can include a pension
- Can afford the loan repayments (if they had to make them instead of you)
- Has a UK bank account with a debit card
- Clean credit history (or marginally imperfect)
- Your husband or wife (only one of our lenders will accept this so you are greatly reducing your choice of loans)
- 18 – 75 years old
- A UK resident
We understand you may not know the details of your family and friend’s finances, though it’s worth spending a little time thinking about the people on your list and these criteria.
For example, if you know that someone does not have a regular income you know there’s no point in asking them.
Step 3 - Preparing (important!)
It's now worth spending time planning what you are going to say to people when you ask:
- Why you need the money- have a good answer to their questions about why you would need the loan.
For example, people may be more inclined to agree to backing your loan if its to fix your car, rather than buy a new iPhone?
A necessity, rather than a luxury.
- The affordability- anything you can show them to make them feel comfortable will greatly help.
Spend time filling out the Citizens Advice Bureau’s Budget sheet.
This will show the potential guarantor you’ve thought about this seriously, and that you can afford the repayments.
IT’S SO IMPORTANT TO DO THIS STAGE TO SHOW YOU’RE BEING SENSIBLE WITH THE MONEY AND YOU CAN AFFORD IT.
Step 4 – Asking
You now need to think about how best to ask them 💬
Different people prefer different forms of communication, so thinking about what the person you’re going to ask prefers.
Bad Ideas 👎
- Maybe asking an aged aunt via email (who does not really use email) is not such a good idea,
- Or texting your Dad at 11.30 pm on a Sunday night.
Good Ideas 👍
- On the other hand, a well thought out email to a friend may work.
- As could asking your mum over a cup of coffee.
- It all depends on the person you are asking as to which form of communication will they best respond too.
NOW DONE YOUR THINKING AND PLANNING, IT’S NOW TIME FOR ACTION – START ASKING PEOPLE.
Can I find a guarantor for a loan online?
Not a good idea 👎
At the time of writing all lenders also ask the relationship between the guarantor and borrower, and “found them online” would result in a rejected application.
Lenders are looking for someone who is willing to back your application and make the re-payments if you stop.
You’d have to ask yourself, why would someone who does not know you take this risk.
Can your husband or wife or partner be your guarantor?
We do have some lenders that do allow your spouse or partner to be your guarantor 👍
Though there are some criteria they will need to meet:
- Needs a good credit score
- Cannot be linked to you financially via joint accounts such as credit cards, overdrafts, or other loans
If you’re married/living together and you may have joint bills (rent, utility bills, etc) this is fine.
If they’re a homeowner, have no financial ties with you, then they could be suitable.
More information on being a guarantor?
See this page which covers more that 15 related questions.
Can’t find a loan guarantor?
There are other options 🙋
Take a look at our No Guarantor Loans.