How do guarantor
loans work?

A guarantor loan is a loan to a borrower not based on the borrower's credit history or credit score.

Guarantor loans are a form of bad credit loans, that allow someone with a poor credit history, or no credit history, to be able to be approved for and receive the loan they need.

The loan is based on affordability, and the fact there is a guarantor for the loan.

The strength of the loan is the guarantor.

By having someone guarantee the loan, it adds a third component to the loan process. The loan is no longer based just on credit history and credit scoring, but the fact someone else, the guarantor is saying the borrower is good for the loan.

If for any reason the borrower cannot pay the agreed monthly payments, then the guarantor will be asked to help in paying the payments.

There is less risk to the lender with having a guarantor on the loan, and since there is less risk, the terms for a loan such as this are better than other bad credit loans. In addition, there is no collateral required for the loan. There is no property securing the loan, the loan can be for up to 60 months, and the interest rates are lower.

If a borrower has a good buddy to guarantee a loan, they can receive a Buddy Loan.

Benefits of a Buddy Loan

  • Easy online application
  • Quick approval
  • Money in your account within 24 hours (in most instances)
  • No deposit required
  • No upfront fees
  • Loan can be for any purpose, to buy a car, consolidate bills, repairs, home improvements
  • Competitive interest rate
  • Loan can be paid back over 60 months (5 years)

Apply today and have your loan tomorrow!


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from 0 to 10

Representative Example


36 months

£158.57 p/m

Total Repayable

Interest Rate
41.16% (fixed)

Representative 49.9% APR.

Terms and Conditions apply. Suitable Guarantor required. All loans are subject to status and affordability checks prior to approval. All applicants must be 18 or over.

Minimum period for repayment: 12 months | Maximum period for repayment: 60 months | Minimum APR 49.8% | Maximum APR 49.9%
Representative example: Amount of credit £3,250 for 36 months. Interest (fixed at 41.16%): £2,464.57. Total amount payable of £5,714.67. Representative 49.9% APR (Variable). 36 repayments of: £158.57.