Amigo Guarantor Loan
Amigo's flexible guarantor loans are around a 30th of the APR of a payday loan and are regularly featured by price comparison sites as one of the cheapest options for anyone borrowing £500-£10,000 with a low credit score, even if you are not a homeowner. Your loan can be for any responsible purpose, ranging from a car to home improvements, and anything in between.
Buddy Loans Guarantor Loan
A Buddy Loan is where you can get a personal loan between £1,000 to £7,500, and pay it back over a time period you can afford. You can pay your loan back in 12 months or up to 60 months! It's lending the old fashioned way of trust and knowing someone can and will repay a loan, not based on your credit history or if you own property.
UK Credit Tenant Guarantor Loan
With a tenant guarantor or non homeowner guarantor product, you will be able to apply for a guarantor loan of up to £6,000. Tenant guarantor loans can be both affordable and flexible – not only can you take advantage of rates from 59.9% (depending on the amount you borrow), but you can also choose to repay your loan over a 12 – 60 month period. Of course, as a responsible lender they will always make sure that you can afford the loan you need.
Guarantor My Loan Homeowner Loan
Apply online with Guarantor My Loan and you can borrow from £1,000 to £10,000 over 1-5 years, repayable in fixed installments. You should ensure you can afford your payments, so that your guarantor doesn’t need to step in.
What is a guarantor loan?
Even if you have a poor credit history, getting a loan isn't completely out of the question. One of the possible options is a guarantor loan.
The concept is similar to an unsecured loan where you will be responsible for making the repayments, however, a second person will act as a guarantor to reassure the lender that they will make the payments on your behalf if you fall behind. As a result, this type of loan is a three-way agreement between yourself, the lender and the guarantor.
This type of arrangement provides added security to the lender, making them more likely to give you a loan, despite your bad credit history.
Your guarantor can be anybody over 18 (in some cases over 21) with a good credit rating, in full-time employment, and who is not financially linked to you. They must be prepared to take on full responsibility to pay back the loan if you are unable to. As it’s such a big financial responsibility, it will often be a family member who will be prepared to act as guarantor. Unfortunately, your spouse is not able to take on this role because their financial circumstances are directly tied to yours.
Having a guarantor reduces the risk to lenders, and for that reason, guarantor loans tend to be aimed at borrowers with a bad credit rating, or who are borrowing money for the first time.
FAQs about guarantor loans
Why might I need a guarantor loan?
If you need to borrow money but you have a bad credit rating, a guarantor loan may be the best option for you.
How much could I borrow with a guarantor loan?
You could borrow between £1,000 and £10,000 with a guarantor loan.
Who can be my guarantor?
Being a guarantor is a huge financial responsibility and the lender will need to feel confident that they will be able to pay back the entire loan if you can’t. Therefore, a guarantor must be over 18, in full time employment with a strong credit rating and own their own home – either outright or with an existing mortgage.
Can I get a guarantor loan if I have a bad credit history?
Yes, as long as your guarantor has a good credit rating and the lender is confident that they will be able to pay back the loan if you can’t.
What do I need to apply for a guarantor loan?
You will need to provide you bank details, employment details, proof of address and your personal details, such as your date of birth. You will also need to provide the same level of information for your guarantor.
Do I have to be a homeowner to get a guarantor loan?
No, you don’t have to be a homeowner. However, your guarantor does.
Whose bank account will the money be transferred into?
Some lenders will transfer the loan into your guarantor's bank account to ensure that they are willing to be your guarantor and making them liable to pay back the loan if you fail to do so.
What will happen if I can’t pay back the loan?
If you are unable to meet the monthly repayments, your guarantor will become liable. If your guarantor is also unable to pay back the loan, they will be taken to court and there is a chance their home will be repossessed to pay back the loan.
Can I cancel my loan?
Yes, most lenders allow a 14 day cooling off period to cancel your loan. You will be required to pay back any money borrowed during that time within 30 days of canceling.