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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.

£

Loans displayed from 8 companies have term lengths between minimum 6 months and maximum 7 years and maximum 49.9% APR.

Homeowner guarantor loan
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29.0%
APR Representative
£160.60
Monthly repayments
Total repayable
£5,781.60
Fees
£0
Representative Example: Assumed borrowing of £4,000 over 36 months at a fixed rate of 25.7% per annum would result in a representative rate of 29.0% APR, monthly repayments of £160.60 and a total amount repayable of £5,781.60.
  • You and your guarantor must be homeowners
  • You and your guarantor are at least 25 years old
  • You earn a minimum of £1,200 per month
  • Your guarantor earns a minimum of £1,500 per month
  • You and your guarantor must have reasonable credit
  • Your mortgage, or your guarantor’s mortgage has not been in arrears in the last 6 months
TFS Guarantor Loan
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39.9%
APR Representative
£178.80
Monthly repayments
Total repayable
£6,436.80
Fees
£0
Representative Example: Assumed borrowing of £4,000 over 36 months at a fixed rate of 39.9% per annum would result in a representative rate of 39.9% APR, monthly repayments of £178.80 and a total amount repayable of £6,436.80.
  • Available to UK resident Only (excluding Northern Ireland)
  • Guarantor Must be a Home Owner and not a partner of the applicant
  • Aged 18 to 75
  • Bad Credit Specialists
  • CCJ's & Defaults considered
  • All income accepted including benefits subject to affordability
UK Credit Guarantor Loan
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39.9%
APR Representative
£178.80
Monthly repayments
Total repayable
£6,436.80
Fees
£0
Representative Example: Assumed borrowing of £4,000 over 36 months at a fixed rate of 34.1% per annum would result in a representative rate of 39.9% APR, monthly repayments of £178.80 and a total amount repayable of £6,436.80.
  • Aged between 18 and 65
  • UK resident
  • Guarantor must be homeowner
TRUSTTWO– Guarantor Loan
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43.8%
APR Representative
£185.23
Monthly repayments
Total repayable
£6,668.28
Fees
£0
Representative Example: Assumed borrowing of £4,000 over 36 months at a fixed rate of 36.9% per annum would result in a representative rate of 43.8% APR, monthly repayments of £185.23 and a total amount repayable of £6,668.28.
  • Applicant: UK resident, aged 18-74, £10,000 minimum income
  • Guarantor: Home owner/tenant, aged 25-74, £10,000 minimum income, not financially linked to the applicant
1plus1 guarantor loan
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47.8%
APR Representative
£191.77
Monthly repayments
Total repayable
£6,903.72
Fees
£0
Representative Example: Assumed borrowing of £4,000 over 36 months at a fixed rate of 47.8% per annum would result in a representative rate of 47.8% APR, monthly repayments of £191.77 and a total amount repayable of £6,903.72.
  • Customer must be 18-75 years old, must not be bankrupt or subject to an IVA, must be able to afford repayments
  • Guarantor must be 18-75 years old, have a good credit rating and be able to afford repayments if the borrower fails to pay
Guarantor My Loan
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48.9%
APR Representative
£193.56
Monthly repayments
Total repayable
£6,968.16
Fees
£0
Representative Example: Assumed borrowing of £4,000 over 36 months at a fixed rate of 40.5% per annum would result in a representative rate of 48.9% APR, monthly repayments of £193.56 and a total amount repayable of £6,968.16.
  • You and your guarantor are at least 21 years old
  • You earn a minimum of £600 per month
  • Your guarantor earns a minimum of £1,000 per month
  • Your guarantor must have reasonable credit
  • Neither you, or your guarantor are currently bankrupt or engaged in an IVA
Suco Guarantor Loan
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48.9%
APR Representative
£193.56
Monthly repayments
Total repayable
£6,968.16
Fees
£0
Representative Example: Assumed borrowing of £4,000 over 36 months at a fixed rate of 40.5% per annum would result in a representative rate of 48.9% APR, monthly repayments of £193.56 and a total amount repayable of £6,968.16.
  • Available to UK resident Only (excluding Northern Ireland)
  • Guarantor Must be a Home Owner and not a partner of the applicant
  • Aged 18 to 75
  • Bad Credit Specialists
  • CCJ's & Defaults considered
  • All income accepted including benefits subject to affordability
Guarantor loan
Apply
49.7%
APR Representative
£194.86
Monthly repayments
Total repayable
£7,014.96
Fees
£0
Representative Example: Assumed borrowing of £4,000 over 36 months at a fixed rate of 41.0% per annum would result in a representative rate of 49.7% APR, monthly repayments of £194.86 and a total amount repayable of £7,014.96.
  • A guarantor may be required
  • UK resident (excluding Channel Islands or Isle of Man)
  • Adverse credit history considered
  • CCJs allowed, must not be currently insolvent or bankrupt
  • Minimum age 18
  • £600 net monthly income, must have a UK bank account
Amigo Guarantor Loan
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49.9%
APR Representative
£195.18
Monthly repayments
Total repayable
£7,026.48
Fees
£0
Representative Example: Assumed borrowing of £4,000 over 36 months at a fixed rate of 49.9% per annum would result in a representative rate of 49.9% APR, monthly repayments of £195.18 and a total amount repayable of £7,026.48.
  • UK resident (including Northern Ireland)
  • Aged 18 to 75
  • Any credit quality
  • CCJ allowed
  • Bankruptcy or IVA are not accepted
  • Any income including benefits is accepted but subject to affordability

Warning: Late repayments can cause you serious money problems. 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.

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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 lenders Having 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.