Dave Beard

Expertly compared by Dave Beard

Products Updated March 25, 2021

Apply for Guarantor Loans – Borrow £500 to £20,000 

Guarantor loans are a perfect option for borrowers with a poor to bad credit history and who require a loan from between £500 – £20,000. If you have a low credit score you’ll find it easier to get a loan with help from a guarantor. Non homeowner and tenant accepted too.

The actual rate you're offered will depend on your personal circumstances – including your credit rating.

5 providers expertly compared:

Uk Credit

Loan Amount
£5,000 - £20,000

Annual Percentage Rate (APR)
19.9%

Loan Term
1 - 5 years

Loan Type
Guarantor Loan

Status
Homeowners & Tenants

Rated 5.0/ 5

Poor Credit

Your monthly payment will be:

£169.35

Interest on this loan will be:

£18,805

Annual Percentage Rate (APR):

19.9%

Total repaid will be:

£50,805

Trusted, simple guarantor loans from £5,000 to £20,000. With the help of a friend or relative to guarantee your loan UK Credit could get you the cash you need.

Representative Example

5 providers expertly compared:

George Banco

Loan Amount
£1,000 - £15,000

Annual Percentage Rate (APR)
36.9%

Loan Term
1 - 5 years

Loan Type
Guarantor Loan

Status

Rated 4.2/ 5

All credit types

Your monthly payment will be:

£169.35

Interest on this loan will be:

£18,805

Annual Percentage Rate (APR):

36.9%

Total repaid will be:

£50,805

With George Banco all you need is a friend or family member who knows and trusts you, who can support the loan if for any reason you are unable to make a your payments. Get an instant online quote with no ill effect on your credit score.

Representative Example

5 providers expertly compared:

Trust Two

Loan Amount
£500 - £10,000

Annual Percentage Rate (APR)
43.8%

Loan Term
1 - 5 years

Loan Type
Guarantor Loan

Status
Homeowners & Tenants

Rated 5.0/ 5

All credit types

Your monthly payment will be:

£169.35

Interest on this loan will be:

£18,805

Annual Percentage Rate (APR):

43.8%

Total repaid will be:

£50,805

With Trust Two you could borrow up to £10,000, in your own name, by asking a relative or friend to guarantee that you'll repay it. Apply online and, once you and your Guarantor are approved, on average you'll have the money within 3 days.

Check My Eligibility
Application Criteria?

Application criteria for this product is:

  • Min age: 21
  • Max Age: 70
  • Homeowners & Non Homeowners Accepted:

Representative Example

5 providers expertly compared:

Guarantor My Loan

Loan Amount
£1,000 - £10,000

Annual Percentage Rate (APR)
48.9%

Loan Term
1 - 5 years

Loan Type

Status
Homeowners & Tenants

Rated 4.8/ 5

All credit types

Your monthly payment will be:

£169.35

Interest on this loan will be:

£18,805

Annual Percentage Rate (APR):

48.9%

Total repaid will be:

£50,805

Guarantor My Loan are a peer to peer platform that doesn’t charge any upfront fees and you have the flexibility to repay what you owe early at any time without penalty.

Representative Example

5 providers expertly compared:

Buddy Loans

Loan Amount
£999 - £10,000

Annual Percentage Rate (APR)
49.9%

Loan Term
1 - 5 years

Loan Type
Guarantor Loan

Status

Rated 4.2/ 5

All credit types

Your monthly payment will be:

£169.35

Interest on this loan will be:

£18,805

Annual Percentage Rate (APR):

49.9%

Total repaid will be:

£50,805

At Buddy Loans their goal is to pay out your money on the same day of the application and they will still consider your application if you can afford it, even if you have CCJs or DEFAULTS. Buddy Loans can be used for any purpose such as debt consolidation, car purchase or home improvements.

Representative Example

Read our customer and visitor reviews for this product:

Rating: 4.5 / 5 with 2 votes

Good comparison

by Mandy Thomson

Good comparison service and lenders to choose from. Easy application form.

Plently of loans to choose from

by SL

These facility by Feasible.co.uk provided many solutions and gave me choice of several lenders as part of the search. Vey fast and no issues using them. Quick to phone me back also.

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.

 

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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. 

 

FAQ

A Guarantor loan can help you borrow money with the help of someone you know to act as your guarantor. This trusted person agrees to co-sign your loan agreement and cover repayments if you cannot - often helping people to get money when they have poor credit or no credit history.

Most people can act as a guarantor, such as a friend, family member or a work colleague. They must have a good credit rating and can be either a homeowner or tenant (non homeowner).

If you are having problems getting a loan because of bad credit or you have a low credit score then a guarantor loan may be a good solution. You must be able to afford the repayments, therefore you must consider your financial budget and living expenses.

Generally lenders will grant loans from £500 - £20,000 over 1 - 5 years (or 12 to 60 months).

No. You will need to undergo a credit check and so will your chosen guarantor. However, these loans are designed to assists applicants with poor credit. If you do have adverse credit or have struggled to get finance before, this type of loan may prove to be a good solution.

Yes. By successfully managing your loan payments and making payments on time, this you will help you build up a positive credit rating and credit score.

We work with the whole market of lenders, including TrustTwo, Amigo Loans, Lendfair, Talk Loans Georgebanco, MasaLoans, Juoloans, Buddy Loans, UK Credit, Tfsloans, Likelyloans, Bamboo Loans, 1plus1 Loans and Solution Loans.

Yes. If you are retired or at pensioner age then you are still eligible. The lender will take into consideration your age which calculating the loan term depending on how old you are.

Yes. With the help of a suitable guarantor who is a homeowner and who has a clean credit record you can still apply for a guarantor loan and get the funds your need.

Yes. The lenders on our panel accept non homeowner and tenant guarantors.

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