Before you apply for a loan with one of the lenders above ensure that you have a suitable guarantor in place who has agreed to act on your behalf and understands the responsibilities. This will help speed up your application process and make the process easier when you come to apply.
Are Guarantor Loans Right for Me?
Guarantor loans can be a very useful way to borrow money if you have bad credit or a very limited credit history.
Using a person you know to be your ‘guarantor,’ they will co-sign your loan agreement and agree to cover your loan repayments if you cannot. By having an extra person to secure your loan, it gives the lender a lot of confidence and helps those borrow money who might have been turned down by mainstream lenders.
Your guarantor is typically a close friend, parent or sibling and ideally if they are a homeowner and have a good credit rating, this will boost your chances of approval and getting the funds you require.
Lending Expert offers an effective way to compare guarantor loans in the UK – working with the whole of the market and providing a simple comparison table so that you can find the best rates and terms for you. Simply compare our lenders and then click on ‘check eligibility’ to get started.
Key Features of Guarantor Loans
- Borrow £500 to £20,000
- Repaid over 12 to 60 months
- Rates from 19.9% APR
- Low APR available
- Requires guarantor to co-sign agreement
- Same day funding
- Tenant and non homeowner guarantor loans available
- Direct lenders available
Reasons to Choose a Guarantor Loan
If your options are very limited due to your circumstances, then a guarantor loan could be one of your best prospects.
Some of the advantages include:
- Being able to borrow up to £10,000 and flexibility to pay the loan within five years
- It does not matter if you have a bad credit history or not history at all
- Your guarantor can be a homeowner or a tenant, a close relative, a colleague or a friend.
- The loan is considered to be significantly cheaper than choosing payday loans or fast repayment loans, and with fixed repayments, you will be able to start clearing poor credit histories, or improving your credit rating.
Am I Eligible to Apply for Guarantor Loans?
- Be at least 18 years of age and a UK resident
- Have a UK bank account
- Must not be bankrupt
- Provide proof of identity and proof of income
- Guarantor must have a good credit history, be at least 25 years old and prove that they can afford the payment of the loan in case the borrower defaults
- Guarantor may be required to be a homeowner, but there are also options for tenants or those living with family and friends
- Must have the guarantor’s permission
Who Should My Guarantor Be?
Your guarantor is someone that you can trust and speak to regularly – often a parent, spouse or sibling. This person should be someone with a stable income, aged 25 to 70 and can afford to make repayments on your behalf. Ideally, the person should be a homeowner and have a fair or good credit rating to maximise your chances of approval.
Working with someone that you trust is very important, since a guarantor loan can last for 12 to 60 months and the person will still be liable for payments if you cannot afford them.
A close family is someone that you are still likely to be in contact with for the foreseeable future – meanwhile you may not be in touch with a girlfriend, boyfriend or work colleague in a few years’ time. So selecting the right person is essential and you should have their full consent before applying.
Can I Get a Guarantor Loan with Bad Credit?
Yes, guarantor loans are often used for people with bad credit ratings, who may have been turned down by the local banks or other short term lenders. This includes people with CCJs, IVAs and bankruptcy.
You need to find someone who is willing to act as your guarantor and has a strong credit history, stable income and employment. The lender will take the approach that ‘if this person is willing to act as your guarantor, we are happy to consider your application.’
Why Should I Compare Guarantor Loans with Lending Expert?
When applying for a guarantor loan, it is important to do your homework and understand the terms including the loan amount, duration, rates and requirements.
By using the comparison table by Lending Expert, you can get all the information you need and make a better informed decision.
We understand that personal finance can be confusing and we want to help people to save money and get the best rates possible.
How Soon Can I Receive Funds?
Customers applying for loans can typically receive funds in 24 to 48 hours.
You will need to have your guarantor available to co-sign the online loan agreement and to speak to the lender on the phone to confirm some basic details.
Once fully approved, the funds are transferred directly to the guarantor’s bank account as a security measure and there is a 14 day cooling period if they want to return the funds, with no fees charged.
How Can I Apply for a Guarantor Loan with Lending Expert?
Start by comparing rates and loan amounts on our comparison table – and once you are ready, just click on ‘check eligibility’ with the lender of your choice.
You will be required to complete some basic information on the lender’s website and you can often receive an instant decision on the screen.
Subject to some further checks with you and your guarantor, you can be approved very quickly and funds can be transferred in 24 to 48 hours, or sooner.