David Allan

Expertly compared by David Allan

Products Updated May 9, 2018

Bike Loans With Guarantor

If you need a loan to buy a bike with a guarantor then our experts can help. If you have little or no credit history then you may find getting a bike loan much easier with the use of a guarantor. We have access to all the lenders who accept guarantors and can quickly provide you with a loan quote from a range of lenders.

3 providers expertly compared:

Learn More
All credit types
Rated 5.0/ 5

CarFinance247 Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£1,000 - £250,000

Representative APR
6.9%

Loan Term
1 - 7 years

Loan Type
Vehicle Finance Broker

Status
Homeowners & Tenants

Finance for cars, motorbikes, vans and motorhomes. We make the process hassle-free & provide the customers with a helping hand throughout. Our aim is to get the best possible finance deal, whilst providing an efficient service of the highest quality.

Representative Example

3 providers expertly compared:

Learn More
Poor Credit
Rated 5/ 5

Uk Credit Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£1,000 - £10,000

Representative APR
39.9%

Loan Term
1 - 5 years

Loan Type
Guarantor Loan

Status
Homeowners & Tenants

Trusted, simple guarantor loans from £1,000 to £10,000. With the help of a friend or relative to guarantee your loan UK Credit could get you the cash you need.

Representative Example

3 providers expertly compared:

Learn More
All credit types
Rated 5/ 5

Trust Two Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£500 - £10,000

Representative APR
43.8%%

Loan Term
1 - 5 years

Loan Type
Guarantor Loan

Status
Homeowners & Tenants

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.

Representative Example

What are Bike loans with a guarantor?

Get the loan you need with help from a guarantor

Get the loan you need with help from a guarantor

Young people, and those who have not had previous loans or credit cards may find that their credit scores prevents them from being able to get a motorcycle loan by themselves. Instead, the lender might offer to take the loan if you have a guarantor. This person assures the lender that you will repay the loan, or the guarantor will take on the debt themselves. Parents, siblings and close friends are usually the people who offer to become guarantors when you want to buy a bike and need a loan to do so.

How do they work?

When you apply for a bike loan, the lender will check your credit history to determine whether you have bad credit, or a poor borrowing history. They may look at your low score, and decide that you are too risky to offer a loan. However, the new fashion for guarantor loans means that you may be offered the chance to take out the loan if you can find someone to co-sign for you. In exchange for their good credit history, you will need to assure them that you are able to repay the loan. The guarantor will then make an application with you, and will sign the loan agreement, taking on the burden of the loan if you fail to repay.

Are guarantor loans a good idea?

There are several reasons why choosing to have a guarantor on your loan can be a good idea. Firstly, this is a traditional form of motorcycle loan for younger people, where parents have always been encouraged to co-sign on the loan. Secondly, if you are sure that you are able to repay the loan, then the extra signature on your loan agreement doesn't mean anything. You will be taking responsibility for the loan, covering the payment of the loan, and using the bike. Thirdly, you will be improving your credit rating by taking on the loan and repaying it fully. This means that, in the future, you should not need to have a guarantor loan.

What are the downsides?

As with any kind of loan, you need to be aware that there are downsides to taking out a guarantor loan on your motorcycle. Firstly, the debt, if not repaid by you, can be easily transferred over to the other party on the form. Fail to repay, and your guarantor gets saddled with the whole debt. Before you get the guarantor to consent to the loan, you need to consider whether you will be able to repay the loan, or if you might struggle after a few months. You don't want to risk placing the guarantor in a position where they are buying something that you have used. In addition, a guarantor loan can have a higher rate of interest than one simply held by yourself.

 

FAQ's

What is a guarantor loan?

A Guarantor loan can help you gain access to the money you need even if you can't obtain credit in your name alone. Typically a relative or good friend will agree to be your Guarantor. They promise, should you ever fall behind with loan repayments, to personally cover them for you. Because your Guarantor knows and trusts you - and has also agreed to cover any repayment shortfall this makes it easier for a lender to lend.

Who can act as a guarantor?

Most people can act as a guarantor, such as a friend, family member or a work colleague. However, they must not be your wife or husband. They must have a good credit rating and can be either a homeowner or tenant.

How do I know a guarantor is right for me?

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.

How much can I borrow?

Generally lenders will grant loans from £500 - £10,000 over 1 - 5 years. You will also have the flexibility to pay of your loan early or make additonal overpayments.

Can I get a no credit check guarantor loan?

No. You will need to undergo a credit check and so will your chosen guarantor. However, guarantor loans are designed with the poor credit applicant in mind. If you do have some adverse credit or have struggled to get finance before, then a guarantor loan may prove to be a good solution.

Will a guarantor loan enable me to build my credit rating?

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

Is there a large choice of guarantor lenders on the market?

The guarantor loans market has lots of choice with many lenders providing a similar service and offer similar loans and interest rates.

Some of the lenders on the market include: TrustTwo, Amigo Loans, Lendfair, Talk Loans Georgebanco, MasaLoans, Juoloans, Buddy Loans, UK Credit, Tfsloans , Likelyloans, Bamboo Loans, 1plus1 Loans, Solution Loans

Are guarantor loans suitable for pensioners?

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

Can I get a loan as a discharged bankrupt?

Yes. With the help of a suitable guarantor with a clean credit record you can still apply for a guarantor loan.

I have previous missed loan repayments and defaults can you help?

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.

We are independently reviewed by our verified customers and web users:
Rating: 4.6 / 5 with 27 votes

Lending Expert is a credit broker and comparison website, we're not a lender.

We bring together the very best financial providers and products from across the market place.

Warning: Late repayment can cause you serious money problems.
For help, go to moneyadviceservice.org.uk