What are they?

A guarantor loan, like any other loan, is when you borrow a set amount of money and pay it back with interest added.

The guarantor part means adding another person as a backup on your loan, which would make them responsible for the debt if you can't afford to repay it.

This may sound good, but finding someone to take on that responsibility can be difficult.

Only consider a guarantor loan if you don't have a strong credit record, as they are often more expensive than other types of personal loan.

Choosing a guarantor

You can choose almost anybody to be your guarantor, but lenders will require them to:

  • Be over 18 years old, sometimes over 21

  • Earn over a specific salary, e.g. 20,000 a year

  • Have a good credit record

  • Be a tenant or homeowner

You can check the eligibility criteria with a lender before you apply.

If when you have found a guarantor they want more information on the risks, share this guide on how to be a guarantor.

How to apply

Before you apply, decide how much you need to borrow and for how long, then:

  • Compare guarantor loans to find the lowest representative APR

  • Visit your chosen lender's website and start an application

  • Complete all fields in the application form (you will need your guarantor's details too)

  • Agree to a credit check at the last part of the application (if you are ready)

  • Discover whether you have been accepted or declined for your loan