Frequently Asked Questions

Here is a list of our most frequently asked questions, which will hopefully help you understand more about us and the guarantor loan application process.

Quick Information:

Who could be my guarantor?

What happens if you cannot repay?

What checks are carried out by guarantor lenders?

How much can I borrow from a guarantor lender?

How can a guarantor loan improve my credit score?

What is a guarantor loan?

A guarantor loan is an unsecured loan which requires a guarantor to co-sign the credit agreement, allowing you to take out a loan even with a poor credit history. For those customers who do have a bad credit rating and struggle to receive a loan, a guarantor loan is ideal, as it will allow you to gain access to loans with reasonable interest rates, because a second person (guarantor) will agree to pay back the loan if the borrower can’t.

Typically, a guarantor will be a homeowner aged between 18 and 75, who has a good credit rating and pays their bills without trouble. Guarantors are normally friends or family who can be relied on to afford your payments if you fall into difficulty. Loans for people with bad credit still require the borrower to ensure they can afford the repayments and all customers must be over the age of 18 and hold a UK bank account.

For borrowers who have previously been rejected by lenders due to poor credit, a guarantor loan could be an ideal solution, offering affordable interest rates and no set up fees. Due to the security provided by the guarantor, these loans will allow you to borrow larger amounts whilst also enabling you to rebuild your credit score by demonstrating that you can borrow responsibly and make timely repayments.

Is a direct lender?

No. is a guarantor loan broker and therefore not a direct lender. All the companies we feature on our site offer guarantor loans direct lenders.

What service does provide? is a comparison website for guarantor loans and an introducer for guarantor loan lenders. We provide access to our best deals based on your circumstances and preferences. Simply order your search of our lenders by representative APR, maximum loan amount or maximum loan term. Once you have chosen a lender, click ‘see deal’ and you will be taken through to the lender’s website where you can apply for the guarantor loan.

Will introduce me to a lender? will provide a comparison of some of the top guarantor loan lenders in the UK and act as an introducer to their products and services. We will endeavour to introduce you to the lender which is best suited to you; however, due to the criteria requirements of some of the lenders, this is not always possible and you may find the lender you have chosen from our comparison table is not suitable for you.

How can I apply for a loan through

It’s easy and straightforward. Take a look at our comparison table of lenders and sort by maximum loan amount, maximum loan term or representative APR, and once you have chosen a lender with the best criteria for you, click ‘apply now.’

You will then be taken to the lender’s website where you can read more about the guarantor loan and can usually fill in an online application form to start the process. Most lenders will then have a conversation with you and your guarantor over the phone.

How long is the application process and when can I look to receive my funds?

Submitting the application form on the lender’s sites usually takes a matter of minutes to complete and submit. However, because a guarantor loan requires a co-signature to guarantee the loan, the actual completion and receipt of funds may take longer (1-3 working days on average), as the lender will usually need to speak to yourself and your guarantor in order to verify details and then approve the loan.

When applying for a guarantor loan, make sure you read the terms and conditions on the lender’s website and the loan agreement fully.

How will the guarantor loan funds be deposited to me?

Typically, a guarantor loan will be deposited into a UK debit account. Lenders will almost always send the funds to the guarantor first – this is a security measure so that they know the monies are going to someone with a good credit score and homeowner status and therefore they are considered lower risk.

The guarantor is given a ‘two week cooling period’ where they can decide to pass on the funds to the borrower or send the money back to the lender with no extra charges.

How much can I borrow on a guarantor loan?

With Guarantor Loans, you can borrow between £100 and £15,000 over 6 to 60 months. The amount a lender offers could be impacted by whether your guarantor is a home owner or you have a tenant guarantor loan.

The Representative Annual Percentage Rate, known as RAPR, reflects the rate that at least 51% of our customers are expected to be charged on their loan. With Guarantor Loans, the RAPR will vary between 39.9% and 49.9%.

Being shown as an annual rate interest, it is an important feature to consider, especially for longer term loans (those that are projected to be re-payed over at least 12 months). However, it is also essential to take into account the total amount repayable, in order to weigh up all the available options.

What criteria obligations will I need to meet to be eligible?

The eligibility criteria will be tailored to each of the lender’s terms and conditions. Nevertheless, in order to be considered for a guarantor loan, there are several key requirements that are generally applicable; first, you must be a UK resident aged 18 and above, have a regular monthly income, and hold a UK bank account. Secondly, you must find a guarantor who would vouch for your ability to re-pay the loan.

Will I have to undergo any credit checks as part of the application process?

Some lenders will undertake credit checks to measure the risk and to make an overall assessment of your financial status. However, the majority of lenders will look at the guarantors’ credit files, in order to ensure their financial position is stable, but this will not impact their credit score.

What are the repayment options?

The most common repayment options are through direct debit or standing order, which are established as regular payments until the guarantor loan is entirely payed off. Other methods comprise debit cards, online payments or payments by phone. There is also the option of re-paying your loan before the end of your term, in which case some lenders will not apply penalties or extra charges. However, if you wish to arrange an alternative method to pay off your loan, you should contact your prospective lender before signing the agreement.

If I get into difficulty repaying my loan, what can I do?

You should only consider applying for a loan if you can afford the payments. However, if you encounter financial difficulties that do not allow you to pay off the loan, you should first contact your lender, who will be in the position of offering you re-payment alternatives.

Nevertheless, fees or charges are likely to incur in the event of the payment scheme’s re-arrangement. It is also important to read the guarantor loan’s terms and conditions, as they contain all the information regarding the inability to re-pay and any subsequent implications.

How can I contact you to discuss a positive aspect of your service?

We are continuously seeking to improve the service we provide, and we massively rely on your feedback to ensure we are on the right path! We will take this opportunity to ask you to tell us how we have performed; you can send your positive comments both via email, and phone.

How can I contact you if I have an issue with your service?

As much as we would love to always meet the entirety of your expectations, we know that certain aspects could still be improved. So, please do not hesitate to contact us if you have experienced any issue or dissatisfaction; our team will be delighted to hear from you either via email or phone, and will aim to answer your queries as quickly as possible: