A Guide to
Guarantor Loans

Overview and Introduction

While many people know and understand the importance of good credit, and may strive to maintain good credit and a good credit score, it is not always possible for all to do this.

Life gets in the way and sometimes things go pear shaped.

A person may take ill, or lose their job, they still have bills to pay, accounts they owe, and suddenly they can no longer afford to repay them. It can damage their credit rating and lower their credit score.

The higher your credit score, the better your credit rating will be.

There are things we can do to improve our credit scores, however, these things can take time. And sometimes a person may need a loan and not have the time to wait until their credit score improves.

There are loans available to someone who has weak or poor, or even no credit, and this is where this guide to guarantor loans can help.

Credit Rating

Why Did We Create This
Guide to Guarantor Loans

Not everyone understands how to get a loan if they have weak or poor credit, what options are available to them, should they need to borrow money.

Guarantor loans are one such option, however again, not everyone knows about guarantor loans or fully understands them.

That is where we are here to help.

This guide will explain what a guarantor loan is, how guarantor loans work, who can be your guarantor, and how to apply for a guarantor loan.

How to Use
This Guide

This guide on guarantor loans is set-up to be read from beginning to end, in it's various chapters.

It is not a difficult read, and hyperlinks will be used where appropriate to direct you to other resources to guide you as well.

Just start at the beginning and read each chapter in succession.

Guide Chapters


Overview &


What is a
Guarantor Loan?


How Do Guarantor
Loans Work?


Benefits of a
Guarantor Loan


Compare Guarantor
Loan Providers

Chapter 1

What is a Guarantor Loan?

Loan Application

A guarantor loan is an unsecured loan, for someone who may not qualify for a loan just on their own. They need someone to guarantee the loan, which means if the borrower does not make the agreed payments, then the guarantor will be responsible for the payments.

Guarantor loans are for someone who may have a weak, or poor credit score, or no credit whatsoever.

The loan can be for whatever reason the borrower requires the loan, and as long as they have someone to guarantee the loan, it can be granted.

The loan is based on the person who is guaranteeing the loan, the guarantor, not the borrower.

Guarantor Loan Example

Person A

requires a loan of £2,000, to repair a boiler, repair a car, move house, or buy a car.

Person A

has no credit, or has experienced credit issues in the past and struggled with repayments.

Person A

may know a close friend or family member (Person B) who feels and knows that the borrower of a loan, Person A, can repay a loan, even though in the past they have experienced credit issues.

Person B

guarantees the loan for Person A, which means if Person A cannot make the payments for the loan, the guarantor who is Person B, will make the payments.

Person A

with weak or no credit is granted the loan they require.


By being approved for the loan, someone can begin to rebuild their credit. In addition, as the loan is guaranteed, it carries a lower interest rate then a payday loan or other bad credit loans.