Welcome to compareguarantorloans.co.uk

We are a comparison website specialising in guarantor loans in the UK. Our aim is simple: to give access to credit and banking products for the underbanked. Making sense of credit and banking is no easy task, so we've sourced the best comparison software and panel of guarantor lenders in the UK to bring you a smart, simple price comparison website that will help potential borrowers in a variety of circumstances to access the financial products they need, quickly and simply.

It is common for someone to seek out a loan when needing help to cover bills or other expenses. Unfortunately, those who have bad credit can often find it challenging to find a loan at a reasonable price. Luckily, there are a variety of alternatives for those who struggle with their finances. If you have been denied a personal loan with no need for any security then a guarantor loan could be your next resort. In these circumstances, a guarantor loan could be a good alternative option because it makes borrowing money at a competitive price available to those with bad or no credit history.

Across our guides and the FAQs on this page, we explain all you need to know on guarantor loans, the benefits, risks, as well as where and how to apply.

Arm yourself with all the information you need to know on guarantor loans and apply for your loan today.

What is a Guarantor Loan?

For someone who has bad or no credit a guarantor loan is a commonly used finance alternative. Though the application process is much like any other type of loan your lender requires you to find a guarantor who will co-sign your application. This guarantor should have a good credit history to support your application and give insurance to your lender that the repayments can be covered. What is a Guarantor?

A Guarantor is a trusted person who supports your agreement, so that if, for whatever reason, you should default on your repayments your guarantor will cover them on your behalf. This is required by your lender to guarantee your loan repayments which inturn, allows people with a bad credit rating to apply for loans with a lower APR to that of a short term high cost or payday lender.

Who can be my Guarantor?

It is recommended that your guarantor is someone who you know well and have a good and trusting relationship with. Close friends and family members are suitable candidates however, they should not be financially linked to you. Ideally, a quality guarantor should have a strong credit rating, earn a stable income and/or own a property in the UK. Meeting these criteria makes for a credible guarantor and will help secure a successful application however, non-homeowners and unemployed candidates may still qualify dependent on the lenders requirements. Due to the added risk for the lender, interest rates for guarantor loans are higher than unsecured loans.

Guarantors should be fully aware of the potential financial risks involved before agreeing. Although collecting from the guarantor is usually a lender's last resort, in the circumstance that the borrower has missed a repayment, the financial responsibility then falls on the guarantor. If the guarantor themselves are unable to cover the repayments, they could run the risk of property repossession.

Getting a Guarantor Loan.

First, to apply for a guarantor loan in the UK, you must meet the following criteria. This includes:

• Being a UK resident
• Being 18 years old or above
• Having a UK bank account

If you meet those basic qualifications then you are eligible to apply for a UK guarantor loan. Typically, for most loans, lenders will look at certain factors when considering an applicant. These are things like your:

• Income
• Credit score/history
• Assets and if you’re a homeowner

Standards vary from lender to lender as some will want you to earn a minimum income of £1000 whilst others may want you to be a homeowner or tenant.The most important thing is being able to prove to your lender that you can pay back the amount borrowed with interest. The stronger your application, the better the deal you might receive. If you don’t have many assets to secure your application you still have a chance at success because you can rely on your guarantor’s good portfolio.

To apply, all you must do is fill out an online application and nominate your guarantor. This is a short process and can take as little as a few minutes to complete. The application is then sent to the lender for moderation and in most cases a decision is made within 24 hours however, there are other options which produce quicker results.