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Guarantor loans

Guarantor loans help those with poor credit scores to borrow money, by allowing a friend or family member to guarantee the loan repayments.

I want to borrow:


Over how long?

Loans displayed from 6 companies with term lengths between a minimum 1 year and maximum 5 years with a maximum 49.9% APR. How our loans calculator works.

How our loans calculator works

Our loans comparison shows how much each loan is likely to cost per month and in total. The amount we show is based on these assumptions:

  • The representative APR is the interest rate you'll be given
  • The loan amount you entered is the exact amount you'll borrow
  • You won't make any late or early repayments
  • You won't fail to make any of your loan repayments
  • You won't repay the loan before the end of the term
  • You won't make any overpayments or underpayments

Our comparison shows how much each loan should cost you, but the amount could be different if the way you repay it varies from the above assumptions. The amount could also be different if the lender offers you a different interest rate to the APR.

Warning: Late repayments can cause you serious money problems. If you fall behind on your mortgage or debts secured against your home, it may be repossessed. For more information see our debt help guides.

uSwitch Limited is a credit broker, not a lender, for consumer credit products. Our services are provided at no cost to you, but we may receive a commission from the companies we refer you to. For some loans a broker fee of up to 12.5% may be added to the cost of the loan.

Our providers

1plus1 Loans
1st Stop
1st Stop Personal Loans
Aspire Money
Bamboo Loans
Central Trust Ltd
Fluent Loans
George Banco
Hitachi Capital (UK) PLC
Likely Loans
M&S Bank
Masthaven Bank Ltd
My Car Credit
Norton Home Loans
Optimum Credit Ltd
Paragon Bank PLC
Post Office
Prestige Finance Limited
Sainsbury's Bank
Shawbrook Bank Limited
Step One Finance Limited
Tesco Bank
TFS Loans
UK Credit Limited
United Trust Bank
West One Secured Loans Limited

What are guarantor loans?

If you have a bad credit score or low deposit getting a loan can be difficult. That's where a guarantor loan could help.

A guarantor loan can be either a secured or unsecured loan that requires you to have a guarantor - a person willing to meet your repayments if you find yourself unable to. Guarantor loans are becoming increasingly common and offer an alternative form of borrowing to those with a poor credit history. There are many specialist guarantor loan companies so it's worth shopping around to find the best rates.

How do guarantor loans work?

When you apply for your guarantor loan you are supplying the details of someone who will pay off your loan should you default on your payments.This reduces the risk for the lender, meaning they are able to offer you lower interest rates than you could obtain elsewhere.Your guarantor will only be called to step in as a last resort move and are not normally involved in repayments.

Who can be your guarantor?

A guarantor is usually a close friend or family member who trusts you to keep up with your repayments, but it can be anyone.Whilst they can be related to you, they cannot be financially linked to you as your spouse.Typically, guarantors have to be aged over 21 with a good credit score.As they will have a credit check to confirm that they have a good credit score, they will need to provide identification, proof of address, bank statements and other details.Often they will need to be a UK homeowner too. If the lender requires security, they need to have enough equity to match the value of your loan.

Guarantor loans - borrowing with bad credit

Guarantor loans are targeted at those with bad credit scores, namely if you have poor credit and have been turned down by mainstream lendersHaving someone support you can help you borrow at more sustainable rates and make it easier to pay back your debts.Often this enables you to borrow higher sums than you would be able to from payday loan companies and other bad credit lenders.Whilst they offer lower rates of interest than payday loans, they are still expensive with typical APRs around 50%.

Rebuilding your credit score

Meeting all the repayments of a guarantor loan can rebuild your credit score. This can make it more likely that you'll be accepted for mainstream unsecured loans and credit cards in the future with lower rates of interest.You can also use credit builder cards to improve your credit score.Bear in mind that while borrowing money actually helps to rebuild a poor credit score, it will only help if you borrow in a sustainable manner and can meet all your repayments.If you're unsure of your credit score it could be worth your time to check your credit report before applying for any form of credit.Your score could be better than you think, or you can find and fix any problems on your record.

What to watch out for

Firstly make sure you have a good relationship with your guarantor and that they understand the risks involved. If the worst happens and you default on your payments they could end up having to cover your repayments, or even lose their home. If you have poor credit make sure to only borrow responsibly, and gradually work up to borrowing larger amounts. Whilst a typical guarantor lender offers loans ranging from £1000 to £7500, think carefully about how much you are borrowing. If you are struggling with your existing debts our guide on getting out of debt could be useful.

Compare guarantor loans

Take a look at the available guarantor loans above to see if there is one to suit your budget and needs.