A Guarantor Loan is a personal loan aimed at people with a poor credit history who can find someone to stand by their loan and guarantee the payments.
A guarantor could be anyone the borrower knows, a friend, family member or co-worker who meets the criteria of the lender. The loan criteria will differ between lenders but will usually include restrictions on age, employment / earnings and possibly a requirement to be a UK homeowner.
A Guarantor Loan will be in the name of the applicant but primarily based on the credit history and status of the guarantor. This means that applicants who may have otherwise been turned down for credit may be able to borrow up to £5000.
As the loan will be in the applicant's name, it can mean that if they maintain their monthly repayments, it will help to slowly rebuild their credit report.
Although the APR will be higher than mainstream high street lenders because of the added risk, it will still be lower, and therefore more manageable, than sub prime lenders who generally impose exceptionally high APRs.
Although available to anyone, a Guarantor Loan is targeted at people unable to gain credit on their own. This may be due to an adverse credit history, including defaults and CCJs or because they have no credit history to reference; for example just turned 18 or perhaps only just moved to the UK?
This means that you can apply for a Guarantor Loan, sourced by Loanfinder UK, if you are a tenant, on benefits, self employed or retired. Practically anyone legally capable of obtaining finance (over 18 and not bankrupt or on an IVA) will be accepted for a Guarantor Loan.
Loanfinder UK can help you find a Guarantor Loan to suit your situation, to apply for our loan finding service please complete the application form at the top of this page.
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