Guaranteed Loans for Bad Credit

For all the different types of loan, we list below their typical acceptance rates:

LOWER ACCEPTANCE / MORE AFFORDABLE

• Guarantor loans – typically 29% - 54.9% APR

MID ACCEPTANCE / LESS EXPENSIVE

• No Guarantor Loans – typically up to 89.9% APR

BEST ACCEPTANCE / MOST EXPENSIVE

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

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

> Get Quotes to find who’s accepted you in principal <

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

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

• The FCA who regulates the UK industry prohibits companies offering any form of credit where it is suggested that applications are in any way guaranteed.
• You cannot get a guaranteed approval loan.
• Please beware any lenders who says that they can guarantee success.

When you guarantee a loan, you are agreeing to make the repayments if the borrower defaults

• To be legally liable for someone else’s loan.
• Often called the ‘loan guarantor’.
• Someone with a good credit rating.
• Someone willing to support the loan application and take on the potential liability.
• Usually a family member, or friend of the borrower.

When guaranteeing a loan, you can become fully liable for the debt (and could get a damaged credit file as a result), so you should make sure you are fully aware of the implications see our Being a Loan Guarantor page.

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

• Better Rates - they typically have better rates than other loans because the lender has the security of the guarantor. 

Compared to other poor credit loans, typically

• 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 👍

> Get Quotes <

NO 👎

Lenders currently 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
  • In addition to the above, lenders will not consider guarantors with poor credit history.

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

Typically, these will be family members, friends, or close work colleagues of the borrower 👪

• A suitable person should have a clean credit history, be a United Kingdom citizen and be employed.
• The best way to find someone is to ask them.

For information see our guide on How to find a guarantor for a loan?

Guarantor loans are a great option, as they make affordable loans more available to those with poor credit scores.

But have lower acceptance rates because not everyone can find someone to guarantee their loan.

Increase your chance of getting accepted:

1. How to find a guarantor for a loan?
2. Being a Loan Guarantor Guide
3. What's the guarantor loan criteria?

We summarise three alternative options below 👇

PayDay

• A high-cost very short-term unsecured personal loan designed to last you only until you are next paid.
• Rates are typically very high up to about 1,500%, and because of this, they are relatively easy to get and have the most relaxed acceptance criteria.
• Amounts are typically below £1,000.
• See Are guarantor loans a payday loan alternative?

Instalment

• High-cost shorter term unsecured personal loan.
• Rather than being designed for only a few weeks, there is a monthly repayment plan as with most other types of loans.
• There are lenders that will lend up to £2,000.
• Acceptance criteria are also relatively relaxed, and this is again reflected in their cost, with rates with some lenders up to about 1,500% APR.
• There are better value instalment loans coming on the market all the time, but they are still a high-cost option.

Doorstep

• At 272% to 399% APR, doorstep loans are much more affordable than the previous types.
• You will need to make weekly payments to an agent that visits your house, which some people do not like.

> Find non-guarantor lenders <

All lenders undertake some form of credit check.

Even it's only to check you’re not insolvent (bankrupt or in an IVA).

• A guarantor loan has a limited number of credit checks on the borrower, and our lenders accept people with loan defaults and CCJs.
• When you Get Quotes, no hard credit checks are done, so you can compare the lenders who’ve pre-approved your application without any impact on your credit score 👍

Before looking for a loan it is always worth getting a copy of your latest credit file 📋

• Check My File is a good company to use as their credit report pulls in information from all the three major credit reference agencies - Experian, Equifax, and Call Credit.
• You can try checkmyfile free for 30 days, then for just £14.99 a month after, which you can cancel online at any time.