Guaranteed Loans for Bad Credit

For the loan types, we list typical acceptance rates

LOWER ACCEPTANCE > MORE AFFORDABLE

• Guarantor loans – typically 29% - 54.9% APR

AVERAGE ACCEPTANCE > AVERAGE COST

• Unsecured Loans – typically up to 89.9% APR

HIGH ACCEPTANCE > MOST EXPENSIVE

• Payday, Instalment & Doorstep - typically 135% - 1,575% APR

We’d suggest trying guarantor first to keep your loan costs to a minimum.

No impact on your credit score, no fees, no obligation

NO 👎

All loan approvals in the UK must be based on the status of the applicant (and if applicable, their guarantor).

• The FCA who regulates the UK finance industry prohibits companies from offering credit where it’s suggested that applications are in any way guaranteed.
• You cannot get a guaranteed approval loan.
• Beware any lender who says that they guarantee a successful application.

When you guarantee a loan, you agree to make the repayments if the borrower defaults.

As a ‘loan guarantor’ you:

• Are legally liable for someone else’s loan.
• Need a good credit rating.
• Should be willing to support the loan application and take on the potential liability.
• Are typically a family member, or friend of the borrower.

When guaranteeing a loan, you can become fully liable for the debt (and get a damaged credit file if there are defaults); you should therefore make yourself fully aware of the implications.

See our Being a Loan Guarantor page.

Guarantor required - you need someone with a clean credit history to guarantee the loan application 🧑‍🤝‍🧑

Compared to other poor credit loans, typically:

• Better rates - they typically have better rates than other loans because the lender has the security of the guarantor. 
• More affordable - often better rates than other loans with Representative APRs of 39.9% - 54.9% compared to 135% - 1,575%.
• Larger loan amounts - from £500 - £15,000 loans, many other loans often up to £2,000. 
• Longer repayment periods - ranging from 6 - 60 months compared to up to 12 months for others (this helps to lower monthly repayments making them more affordable).

More affordable credit available to those with a poor credit history 👍

NO 👎

Lenders, unfortunately, do not consider

BORROWERS

• Under 18 or over 75
• Zero income
• Non-UK resident
• No bank account or debit card
• Insolvent (undischarged bankrupt, IVA, trust deed)
• Where the loan is not affordable

GUARANTORS

• Poor credit history
• Who do not meet the other criteria listed above

For more information see page What’s the guarantor loan criteria?