Guaranteed Loans Are Not Available

For the loan types, we list typical acceptance rates

LOWER ACCEPTANCE > MORE AFFORDABLE

• Guarantor loans – typically 29% – 54.9% APR

AVERAGE ACCEPTANCE > AVERAGE COST

• Unsecured Loans – typically up to 89.9% APR

HIGH ACCEPTANCE > MOST EXPENSIVE

• Payday, Instalment & Doorstep – typically 135% – 1,575% APR

We’d suggest trying guarantor first to keep your loan costs to a minimum.

No impact on your credit score, no fees, no obligation

NO 👎

All loan approvals in the UK must be based on the status of the applicant (and if applicable, their guarantor).

• The FCA who regulates the UK finance industry prohibits companies from offering credit where it’s suggested that applications are in any way guaranteed.
• You cannot get a guaranteed approval loan.
• Beware any lender who says that they guarantee a successful application.

When you guarantee a loan, you agree to make the repayments if the borrower defaults.

As a ‘loan guarantor’ you:

• Are legally liable for someone else’s loan.
• Need a good credit rating.
• Should be willing to support the loan application and take on the potential liability.
• Are typically a family member, or friend of the borrower.

When guaranteeing a loan, you can become fully liable for the debt (and get a damaged credit file if there are defaults); you should therefore make yourself fully aware of the implications.

See our Being a Loan Guarantor page.

Guarantor required – you need someone with a clean credit history to guarantee the loan application 🧑‍🤝‍🧑

Compared to other poor credit loans, typically:

• Better rates – they typically have better rates than other loans because the lender has the security of the guarantor.
• More affordable – often better rates than other loans with Representative APRs of 39.9% – 54.9% compared to 135% – 1,575%.
• Larger loan amounts – from £500 – £15,000 loans, many other loans often up to £2,000.
• Longer repayment periods – ranging from 6 – 60 months compared to up to 12 months for others (this helps to lower monthly repayments making them more affordable).

More affordable credit available to those with a poor credit history 👍

NO 👎

Lenders, unfortunately, do not consider

BORROWERS

• Under 18 or over 75
• Zero income
• Non-UK resident
• No bank account or debit card
• Insolvent (undischarged bankrupt, IVA, trust deed)
• Where the loan is not affordable

GUARANTORS

• Poor credit history
• Who do not meet the other criteria listed above

For more information see page What’s the guarantor loan criteria?

Guarantor loans are a great option

• They make affordable loans more available to those with poor credit scores.
• But have lower acceptance rates because not everyone can find someone to guarantee their loan.

Increase your chance of getting accepted

1. How to find a guarantor for a loan?
2. Being a Loan Guarantor Guide
3. What’s the guarantor loan criteria?

We summarise three alternative options below 👇

Payday

• A high-cost short-term small loan for a few weeks only, up to your next payday.
• Rates are typically very high up to about 1,500%, and because of this, they are relatively easy to get and have the most relaxed acceptance criteria.
• Amounts are typically below £1,000.
• See Are guarantor loans a payday loan alternative?

Instalment

• High-cost short term unsecured personal loan.
• Rather than only being for a few weeks, there is a repayment plan (typically 2 to 12-months).
• Loans are typically up to £2,000.
• Acceptance criteria can be more relaxed, this is reflected in their cost, with rates with some lenders up to about 1,500% APR.
• There are better value instalment loans coming on the market all the time, but they are still a high-cost option.

Doorstep

• At 535% to 716% APR, doorstep loans are more affordable than the previous types.
• You will need to make weekly payments to an agent that visits your house, which some people do not like.

NO 👎

All lenders undertake some form of credit check, to verify

• Your ID
• That you’re not insolvent (bankrupt or in an IVA)

A guarantor loan has a limited number of credit checks on the borrower, and our lenders accept people with loan defaults and CCJs (subject to affordability).

Before looking for a loan it’s always worth getting a copy of your latest credit file 📋

CHECK MY FILE

A good company to use as their credit report pulls in information from all the three major credit reference agencies – Experian, Equifax, and Call Credit

• You can try checkmyfile free for 30 days, then for just £14.99 a month after, which you can cancel online at any time.

CREDIBBLE

Shows you your credit file and what you may need to do to fix it!

• Try Credibble for only £7.95 a month (cancel at any time)
• Learn more – how to improve your credit score with Credibble