Guarantor loans offer an effective way to borrow money with the help of a guarantor you know to co-sign your loan agreement. For borrowers who have been turned down by mainstream lenders and banks, you can still borrow up to £15,000, even with a bad credit score, repaid over 12 to 60 months.
Start by clicking on the button below and after entering a few details, All Purpose Loans will help find the lender best suited to your requirements.
Safe and reliable – Guarantor loans are a safe type of personal loan to use and with around a dozen lenders in the UK, the industry has a good reputation. The sector is regulated by the Financial Conduct Authority and the average rates are around 49.8% representative APR which is quite competitive for customers with bad credit. If you are able to repay your loan early, you will save money on interest and the cost of your loan will be reduced overall.
Multi-purpose – Loans with a guarantor can help you get the funds you need for your busy lifestyle, whether it is consolidating your debts, home improvements or for business purposes.
Bad credit customers accepted – If you have a bad credit rating and have been turned down for loans with other providers, you can still get the finance you need, provided that you have a guarantor to sign your loan agreement. Customers will typically ask a parent, sibling or spouse to act as their guarantor – and those with good credit ratings and a homeowner status will usually maximise your chances of acceptance.
Improve your credit score – An advantage of guarantor loans is that it gives you the opportunity to prove your creditworthiness. So if you can repay your loan every month on time, this information will be updated to your credit record and your credit score will go up. By having a better credit rating, it will improve your chances of being approved for future credit and loans and allow you to access the best rates possible.
You will need to have a guarantor to co-sign your loan agreement. As part of the loan arrangement, the guarantor will agree to cover the cost of your loan repayments if you cannot keep up with them.
For the lender, this provides a lot of security knowing that someone else can step in and make repayments on your behalf. The loan agreement is always electronic, so the guarantor will be presented with the information beforehand and will usually speak to the lender on the phone beforehand to confirm all the details and expectations.
To be eligible, you will need to be able to repay your loan payments each month – so you should ideally be in employment (part-time or full time), earning a regular income and able to afford monthly repayments.
Your guarantor should be aged 25 to 75 years old and someone that you know, trust and speak to regularly. The most successful guarantors are family and friends (this includes parents, siblings, husbands and wives). You ideally need someone that you are in regular contact with and can speak to openly about your finances.
To maximise your chances of approval, you should find a guarantor with good credit and one that is a homeowner. This means that they have a good track record of paying loans on time and by owning a property, it means that they should be easier to contact and have a financial asset that can be utilised if need be.
You should also find a guarantor that you expect to be in contact with over the next few years. Work colleagues, boyfriends and girlfriends may be out of touch in a few years’ time – and it would be embarrassing if they were called upon as a guarantor in 3 or 5 years.
Apply for a guarantor loan today by clicking on the button below. Enter a few basic details about yourself, including how much you wish to borrow and how long for. We will provide an instant decision on the screen and present you with a list of options and terms based on your loan requirements. You can proceed with the lender of your choice and undergo some further checks. If your guarantor loan is successful, you will usually receive funds in 24 to 48 hours, or sometimes less.