Guarantor loans

Compare guarantor loans and check your eligibility in minutes[1]

What is a guarantor loan?

A guarantor loan is an unsecured loan where a second person is responsible for paying off the debt if you can’t keep up with repayments.

If you can’t afford any repayments your guarantor will be liable for them and will have to pay. It works a bit like having a joint bank account - both your credit scores will be impacted.

Guarantor loans are an option if you’ve got a poor credit history or no credit history, and you’re struggling to get accepted for a standard personal loan.

What is a guarantor loan?

Compare guarantor loans and find the best rates for you

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How to compare guarantor loans

Comparing guarantor loans with us is easy.

Guarantor loan criteria

Sometimes your guarantor needs to be a UK homeowner too, but there are non-homeowner loans available.

These kinds of loans might be secured against the property of the guarantor, so if you default on your repayments, you risk the guarantor’s property being repossessed.

You can’t be financially linked to your guarantor already, for example, if they're a partner that you share a bank account with, but they can be a friend or family member.

The interest rate on guarantor loans varies by lender but expect it to be higher than average. We checked Defaqto, and out of 15 guarantor loans, the representative APR ranged from 24.9% to 69.9%.[2]

You’ve also got a limited choice, there aren’t that many options for guarantor loans on the market.

For loan applicants

You’ll need to:

  • Be over 18
  • Hold a UK bank account
  • Demonstrate to the lender you can afford the repayments

For guarantors

Guarantors must:

  • Be over 21
  • Hold a UK bank account
  • Have a good credit history

Not all banks offer guarantor loans, so you might have a more limited choice of lenders

A guarantor loan doesn't guarantee that you're going to be accepted for the loan - you can still be rejected if you or your guarantor don't meet the lenders requirements - generally guarantors need to be over 21, have a UK bank account and a good credit history.
Matt Sanders - GoCompare Money Expert

Guarantor loans top tips:

  • Keeping up your repayments will improve your credit score
  • If possible, pay off your loan early to minimise the interest you pay
  • Use a soft or smart search to compare loans to avoid impacting your credit rating

Alternatives to guarantor loans

Here are a few other options to consider:

  1. Chat to your bank or building society

    If you’ve got a good reputation with them, you could be offered a loan tailored to your circumstances

  2. Credit unions

    These not-for-profit organisations can be more supportive and understanding than other lenders, but you need to be a member to qualify for a loan.

  3. Peer-to-peer lending

    This is where you borrow money directly from another person, but only those with a squeaky clean credit history are offered the best deals. Read more about peer to peer lending

  4. Credit cards

    There are credit cards specifically for those with bad credit, so it’s worth taking a look to find the best solution for you

  5. Payday loans

    If payday loan seems like your only option, you’re better off staying away from any kind of borrowing and talking to Citizens Advice, National Debtline or Step Change for free advice

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[1] introduces customers to Runpath Regulated Services, which is authorised and regulated by the Financial Conduct Authority.’s relationship with Runpath Regulated Services is limited to that of a business partnership, no common ownership or control rights exist between us. Please note, we cannot be held responsible for the content of external websites and by using the links stated to access these separate websites you will be subject to the terms of use applying to those sites

[2]As of 17th October 2019.