Borrow £250 to £3,000
- Bad Credit Accepted
- Fast Payout
- No Fees
- Secure Application
Short Term Guarantor Loans
£250 – £3,000
APR Rates from 278% to 1576%
3 – 12 month repayment
Personal Guarantor Loans
£1,050 – £3,000
Whole of Market panel
Trusted panel of lenders
Rates from 5.7% to 278% APR
3 – 36 month repayment
Representative 481.6% APR.
Representative example: £500 borrowed for 5 months. Total amount repayable is £991.85 in 5 monthly instalments of £198.37. Interest charged is £491.85, interest rate 236.1% pa (variable).
Guarantor Loans up to £15,000
- Taking out a loan with a guarantor means you are more likely to be accepted for higher lending amounts.
- Having someone else to co-sign your loan agreement deems you less of a risk to a lender.
- If you have a bad credit history then using a guarantor to vouch for your repayments can make for a successful application.
Guarantor loans offer an effective way to borrow up to £15,000 with the help of a guarantor to co-sign your loan agreement. Commonly used for people with less than perfect credit scores, you are able to leverage the good credit rating and profile of your guarantor and get the loan you need.
For the guarantor, they get the satisfaction knowing that they have helped someone close to them to get access to funds – and the borrower also gets the opportunity to demonstrate their creditworthiness and can improve their credit score if they can consistently make payments on time each month.
Customers are able to borrow over 12 to 60 months, repaid in equal monthly instalments, with most lenders charging in the region of 39.9% to 59.9% APR, making it a more affordable and viable alternative to payday loans.
UnsecuredLoans4u works with some of the best guarantor lenders in the UK, with options available to bad credit histories, homeowners and tenant guarantor loans. Simply click on apply now or use our table to compare guarantor loans and click through to the lender which suits your requirements.
Borrow anything from £100 to £25,000 today.
Quick online application takes minutes.
Key Features of Guarantor Loans
|Borrow £500 to £15,000||Cosigning a loan generally opens up further lending opportunities, which mean you can borrow higher amounts. With access to our lending panel you can take out a small loan from £100 up to a larger loan of over £10,000 (assuming you meet the lending requirements of course).|
|Repaid over 12 to 60 Months||Less risk to the lenders will ultimately result in more flexible loan repayment periods, with anything from 12 months to 60 months being commonplace. Of course the best approach is to borrow no more than you need, for as shorter time as possible to keep overall costs down.|
|Rates vary between 39.9% and 59.9% APR||As with the loan amounts, and the loan repayment periods, the interest rates will vary according to the lender, total and loan duration. Typically you will find lower interest rates when compared to other types of lending as a guarantor is there to provide support if needed.|
|Need a guarantor to co-sign your loan agreement||This goes without saying… but you will need an additional person to cosign your loan agreement, and this person will have to qualify themselves in order to enter into the loan agreement.|
|Guarantor should have a good credit rating to boost approval||There are minimum requirements that all parties have to meet in order to be eligible for a loan. However, if the person coming in to guarantee the repayments has a good credit score then your likelihood of approval increases and the amount you can lend will rise.|
|Homeowner guarantors will maximise approval||As with a good credit score, if your guarantor is a homeowner it can work in your favour. It shows that they can make continuous repayments and are generally a low-risk when it comes to lending.|
|Repaying on time can improve borrower’s credit score||Though it may seem counter-intuitive, taking out a loan can actually help to increase your credit score. If you borrow money and make regular repayments that are on-time consistently it proves that you are a reliable lender which will positively impact your credit history.|
|Option to repay early||You should always aim to repay your loan amount as soon as possible to avoid further interest charges accruing. Not over-lending in the first place and choosing a realistic repayment period will all help. It also relieves your guarantor of their duty.|
Are Guarantor Loans Available for People with Bad Credit?
Yes, guarantor loans are often used by people looking for bad credit loans, recent CCJs or even young people with no credit ratings. For the millions of Britons that are turned down by banks for mainstream finance, guarantor loans allow you to get the funds you need, using an extra person with a good status to guarantee and ‘back up’ your loan.
In the event that you are unable to repay your loan, your guarantor will be required to make repayments on your behalf. For the lender, this gives a lot of confidence that they will be able to recover their funds, hence they are able to offer loans to people with adverse credit ratings.
For young people who have no built up any credit history yet, it can also be very difficult to get accepted for personal loans, whether it is unsecured loans or business loans. However, using a guarantor provides that extra security and trust to your application and it is a source of finance commonly used by young people in the UK.
What is The Criteria for a Guarantor Loan?
- Borrower must be over 18
- Borrow must be employed and have a regular income
- Guarantor must be over 25, but less than 75
- Guarantor must co-sign loan agreement
- Guarantor should have good credit rating and regular income
- Both parties must be UK residents
- Both parties must have working mobile phone and email addresses
- Both parties must have working debit accounts
Don’t wait! Get an instant decision now
Compare high acceptance UK Direct Lenders
What Information Do I Need to Provide for a Guarantor Loan?
Applying for a guarantor loan starts with a very simple online application where you are asked to provide details including your name, age, residential address, employment, income, expenses and bank account details.
You will also be required to enter some basic details about your guarantor (and make sure that you have asked for their permission beforehand).
Upon the completion of your application, the guarantor lender will get in touch with both parties to confirm a few details and the responsibilities involved. Notably, to discuss the role of the guarantor’s involvement in the loan agreement and their duty to make repayments if the main borrower defaults.
Both parties will need to co-sign a loan agreement which highlights the key terms of the loan including the amount, duration, fees and repayment terms. All loan agreements are completed electronically, so there is no paperwork involved.
Depending on the application, some lenders may request proof of income, residence and a recent bank statement from both parties.
More Guarantor Loan FAQs
Do I apply online?
Yes! Providers of guarantor loans have made the application process as convenient and easy as possible. As a result, you will normally only need to fill in a quick online application form and click on ‘submit’ to send it to one or more lenders. In many cases, one or more lenders will contact you on the day you apply to see if they will be able to assist you.
Will a guarantor get me a bigger loan?
There may be cases where it will be possible to obtain a loan for a larger sum of money if you’re able to provide a guarantor when applying. However, this will differ from one lender to another, so you will need to find out at the time of applying.
Can I apply with no credit history?
Absolutely! Several lenders are now willing to help provide loans to individuals who may not yet have been able to build any form of credit history with banks or other lending institutions. However, slightly higher interest rates may be charged on loans like these to offset their risk.
Must my guarantor have good credit?
In situations where a guarantor is being provided at the time of applying for a loan, he or she will have to have a good credit score. They will not be allowed to act as guarantor under any circumstances if they have a poor credit history. In some cases, they will need to be property owners as well.
Can I repay guarantor loans early?
Most definitely! These days, many lenders will be willing to let you repay a loan before its initial due dates if you’re able to do so. You will need to find out from them whether they have a policy in place to cater for scenarios like these or not.