A guarantor loan asks a second person to agree to cover the repayments if you cannot. It is a big commitment for whoever agrees to be your guarantor.
Many lenders on our panel do not require a guarantor at all. One soft search shows what you could borrow in your own name, with no impact on your credit score. A hard credit search is only carried out when you formally apply to a lender which can affect your credit score.
How guarantor loans work
With a guarantor loan, your guarantor is legally responsible for the debt if you fall behind. That can affect their credit and their relationship with you, so it is worth considering carefully.
- A second person backs your repayments
- The guarantor is liable if you cannot pay
- Not needed for many lenders on our panel
Borrowing without a guarantor
If you would rather not ask someone to act as guarantor, you can check no guarantor options based on your own affordability. Checking uses a soft search and does not affect your score.
What it means for your guarantor
A guarantor is legally responsible for the repayments if you cannot make them, so it is a genuine commitment for whoever agrees. If the guarantor is required to pay and does not, their credit record may be affected, and it can put a strain on the relationship, so it should only be agreed after careful thought on both sides.
Guarantor loan or borrowing on your own
Many lenders on our panel lend without a guarantor at all, based on your own circumstances. If you would rather not ask someone to back your loan, you can check no guarantor options first with a soft search.
How to apply
Borrowing responsibly
It is worth making sure the monthly repayment fits comfortably around your other commitments before you apply. Focus on the total amount repayable across the full term, not just the headline monthly figure, and only borrow what you really need.
Every lender on our panel is authorised by the Financial Conduct Authority, and high cost short term credit is subject to an FCA total cost cap, meaning you cannot repay more in interest and fees than the amount borrowed. If money is tight, free and impartial help is available from MoneyHelper.
Representative Example: Borrow £1,000 over 18 months. 18 monthly repayments of £89.22. Total amount repayable: £1,605.96. Interest: £605.96. Annual interest rate: 59.97% (fixed). Subject to application approval by the lender. Not all lenders offer loans up to £5,000. Representative APR 79.5% (Variable). Any representative monthly repayment shown is for illustration only, based on our representative APR. Your actual repayments will be confirmed by the matching lender if your application is approved.