What is a guarantor loan?

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We look at the information you need to know about this type of loan and whether it could be suitable for you.

From how they work to the frequently asked questions about loan sizes and finding a guarantor.

All the way to the criteria you need to meet, finding the cheapest loan, and more.

An affordable loan for those with a poor credit history

These loans are more affordable because you need a guarantor.

Our lenders look at the credit history of your backer and therefore are less interested in your credit history, which is great news because not only will this enable you to get a loan, but also one which is much more affordable than a payday, doorstep or instalment loan..

Available to those with a bad credit history

If you have missed payments and CCJs these are not a problem.

If you have a less than perfect credit history this is not a problem as our lenders look at your guarantor. The only issue is if you have been made bankrupt or are insolvent in an IVA or trust deed Unfortunately at this time this is outside our lenders criteria.

Affordable and flexible repayments terms

Typically, much more affordable than other types of bad credit loan.

Our lenders’ loans typically have much lower interest rates than the other well-known types of ‘poor credit loan’ such as payday, doorstep or instalment loans.

What is a guarantor loan?

How it Works

A guarantor loan is a personal loan, which means that you do not need to be a homeowner.

You will need a loan backer, or guarantor; someone who agrees to make your repayments on your behalf if you stopped.

Your loan backer is typically a friend or family member who trusts you, and typically they will need a clean to slightly imperfect credit history. They do not need to be a homeowner but the cheaper loans are available for those that are.

The lender looks at your backer’s credit file and status so if you have a poor credit file with missed payments and CCJs then this is normally not a problem. So to see if this type of loan is suitable for you please:

  1. read our Frequently Asked Questions
  2. estimate monthly loan repayments using the loans calculator
  3. compare the different loans we have available

Frequently asked questions

1How much can I borrow and how long for?

Our lenders offer a wide range of loans from £100 over six months to £15,000 over five years and everything in-between.

The loan you qualify for will depend on you and your guarantor’s status. To find out how much you can afford please see our loan calculator and compare all our different loans.

2Does my credit history matter?

It does not matter if you have a bad credit rating, say through missed payments or a CCJ; though your loan backer, worst case should only have a slightly imperfect credit history.

If, however, you have been declared insolvent via and IVA, Trust Deed (Scotland) or Bankrupt, unfortunately, our lenders will not lend.

3How can I find a loan guarantor?

The best place to start is with your family; a parent, grandparent, aunt or uncle, someone you have a great relationship with and will trust you to repay your loan.

The next place would be friends or work colleagues, again people with whom you have a great relationship, people who will trust you to make all your repayments.

4Can my guarantor be my husband or wife?

Yes, some lenders do accept spouses as guarantors.

5What criteria does my guarantor need to meet?

From the range of loans that our lenders offer, the following summarises the outline criteria that is required:

  • Over 18 and a UK resident
  • Homeowner or non-homeowner (homeowner loans are cheaper)
  • Clean credit file or slightly imperfect credit file (clean credit file loans are cheaper)
  • Regular income (including pension)
  • UK bank account with a debit card

For more information, see Being a guarantor.

6What criteria do I need to meet?
  • Over 18 and a UK resident
  • Homeowner or non-homeowner (homeowner loans are cheaper)
  • Clean credit file or slightly imperfect credit file (clean credit file loans are cheaper)
  • Regular income (including pension)
  • UK bank account with a debit card

For more information, see Being a guarantor.

7Do I, or my guarantor, need to be a homeowner?


There are plenty of options for those, including their guarantors, who are not homeowners.

Please note that some of our lenders offer their best rates to those who are homeowners, as well as their guarantors (though these are still unsecured loans).

For more information, see Non homeowner loans.

8How do I find your cheapest loans?

The cost of a loan will depend on how much you borrow, over what time period, and the status of you and your guarantor.

The APRs of our lenders larger loans (£500 to £15,000) range from 39.9% up to 54.9% and for the smaller loans (£50 to £500) about 302% representative APR.

To find the lowest cost loan for you:

  1. estimate loan repayments using our loan calculator
  2. compare different loans on our compare table
  3. let us find the best loan for you by filling out our application form

Please note that even after applying, you are under no obligation to take out a loan, or for any costs, until you have signed and returned your loan agreement.

Loan Calculator

Use the loan calculator below to estimate monthly loan repayments.

Approximate figures

  • Monthly repayments from to . Total repayable from to . Representative APR's from to

Click to see all our lenders Representative APR's

This tool is for GUIDANCE ONLY. It is designed to help you estimate loan repayments. It uses the representative APR of each product. Lenders have a duty to conduct affordability checks when you apply for a loan, see Responsible Lending.