Comparing guarantor loans with Money Expert
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Our eligibility checker counts as a soft search, meaning it won't appear on your credit report
Borrow with bad credit***
Guarantor loans are great for customers with poor or limited credit histories
A guarantor loan allows you to borrow money that you might otherwise have trouble accessing because of your credit rating. By opting to have a guarantor who assures repayment if you can't make it, your options are opened up.
At Money Expert we want to make borrowing simple, helping you to find a personal loan tailored to your needs, leaving you free to enjoy the simple things in life.
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* 92% of 16,077 reviews from TrustPilot gave an “Excellent” or “Great” rating, as of October 2022. Overall rating on TrustPilot was 4.6 / 5 as of October 2022. | **Although lending partners initial eligibility checks involve a soft pull of your credit information, and there is no impact on your credit file at this stage, lending partners may subsequently conduct a hard search, prior to finalising your loan offer. This hard search would stay on your report for 12 months. | ***Correct as of August 2020
Information about guarantor loans
Not sure what a guarantor loan is for, or who who can be a guarantor? Read below for details.
Who are guaranted loans for?
Anyone can apply for a guarantor loan. So long as you have agreed with a trusted friend or family member, have a UK bank account, are in full-time employment and are 18 years or older.
With many services and products now requiring a form of credit, a guarantor loan may be the best way for you to get your foot in the door if you have never borrowed before or have a low credit rating.
People most likely to benefit from a guarantor loan are:
Young people applying for a first-time loan
Those with a poor credit history
Trying to get on the property ladder
Build up good credit but can't do it on their own
Who can be a guarantor?
Having a good stable relationship with your guarantor is ideal when looking to take out a guarantor loan; you wouldn't want to put your trust in someone that isn't willing to help you. Often, choosing someone who already has a good credit history will give you the best range of options when choosing a guarantor loan.
It is worth knowing how secured loans and their repayments work before getting one. However, if you already have a good credit rating, a secured loan is a viable option.
The following can be used as a guarantor of a loan:
Parent or carer
Spouse - as long as you don't have a joint bank account/mortgage
What is required from a guarantor?
In order to be a guarantor, the chosen person will need to pass certain requirements before being accepted by the lender.
These usually include an age limit, the person chosen having a stable income, and being based in the UK.
They need to be 21 or over, although some lenders will accept 18 years+
They have to have a UK bank account
They will have to have a good credit history
They usually need to be a homeowner with a stable income
Why use Money Expert to compare loans?
At Money Expert, we want to make borrowing simple.
That is why we offer loan comparison with no impact on your credit score, comparing offers from over 40 lenders.
Whatever you require a loan for, we will do our best to find the best loan suited for your circumstances.
Free and no obligation
Money Expert will always be free, and you are under no obligation to accept a quote.
All loan terms are clearly shown with no hidden costs.
No impact on your credit score*
We use a “soft search” to match you to your credit file, leaving no impact on your credit rating.
Tailored to your circumstances, Money Expert will provide you with a wide range of loans to choose from from within 2 minutes.
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We understand how important it is for you to feel safe online; your experience with us will always be secure.
Over 40 lenders & banks**
We will match you with personalised offers from a panel of over 40 lenders
*Although lending partners initial eligibility checks involve a soft pull of your credit information, and there is no impact on your credit file at this stage, lending partners may subsequently conduct a hard search, prior to finalising your loan offer. This hard search would stay on your report for 12 months. | **Correct as of August 2020
Frequently asked questions
What is a guarantor loan?
In a nutshell, a guarantor loan is an unsecured personal loan where the borrower is "guaranteed" by another person. This person is often a close family member or trusted friend who acts as your backup if you can't make repayments.
Affordability checks are made on you and your guarantor to make sure you can afford the repayments. Although you are sharing the responsibility of a guarantor loan, it is not a "joint" loan yet you both share the liability for loan repayments.
Guarantors will only ever be contacted if you fail to make your monthly repayments. If your loan account falls into arrears, your guarantor will be contacted to make them fully aware of the situation. Your guarantor can then make a voluntary payment if they wish. Most guarantor loans will enforce the debt and demand payment once the account has defaulted.
A guarantor loan is only an actual risk if you and your guarantor cannot make the repayments. So know beforehand what you are both able and willing to pay before agreeing to a loan.
Why do I need a guarantor?
Are you someone that has struggled to get a personal loan in the past? Or do you have a poor or limited credit history? If the answer is yes, having a guarantor loan may be your only option.
Having a guarantor in place to back your loan will make a lender more willing to take a risk on you.
With all of our loans, they are tailored to you and your circumstances. We look at what you and your guarantor can afford to pay back in monthly instalments. The duration and amount borrowed are taken into account before you can accept a guarantor loan. This ensures you and your guarantor have the best chance of making your repayments.
What if I can't afford the repayments?
If at any point, you are struggling financially, get in touch with your lender. Life is complicated enough without having to worry about your finances. Your lender will try to work with you to resolve your situation as quickly as possible.
Fortunately, with a guarantor loan you have a backup plan in place should your repayments go awry. Here's what you can do:
- As mentioned, get in touch with your lender as soon as possible
- Speak to your guarantor if you know you are going to fail to make repayments
- Come up with a plan to settle your repayments and arrears
- Be prepared to alter your agreement if necessary
When will my guarantor be contacted?
Your guarantor will only be contacted if your loan falls into arrears. Legal action will only be considered if all other reasonable options have been exhausted first. So, if neither of you can pay or are unwilling to pay, legal proceedings may be actioned.
About our loan comparison service
The loan comparison service via this website is provided by MoneyExpert in association with Monevo Limited (Monevo) which is an Appointed Representative of Quint Group Limited (Quint), and is entered on the Financial Services Register under reference number: 723672. Quint is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference number: 669450. Monevo is registered in the UK at Glasshouse, Alderley Park, Nether Alderley, Cheshire, SK10 4ZE and it is licenced by the Information Commissioner's Office, with number Z1498441.
Monevo is a broker, not a lender and it matches a customer's loan application with lenders and brokers from our panel depending on the information provided.
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Money Expert is a full service, 100% independent price comparison website. We have helped over 1 million customers save on utilities, broadband, and loans since we launched in 2003.
We aren’t owned by an insurance or lending company, and will always seek to get you the best loan deal possible. Getting a quote is free, there are no obligations, and it won't affect your credit score!
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Last reviewed: 1 December 2023
Next review: 1 January 2024