Loans without a guarantor

Compare loans that don't ask for a guarantor[1]

  • Loans advertised as ‘non-guarantor’ tend to have high interest rates and low loan amounts
  • Improving your credit score can help you to access better deals in the future
Senior couple using their laptop

What is a non-guarantor loan?

There are lots of different types of loans and it’s vital you do your research before you commit to signing up for any of them.

Both guarantor loans and non-guarantor loans are often aimed at people who have a bad credit rating.

With a guarantor loan, a loved one (family member or friend) who has a better credit rating agrees to be responsible for paying off the debt if you can’t keep up with the repayments.

If you have a poor credit history or are yet to build one up, some lenders will insist on a guarantor before they’ll lend to you.

Technically, any other standard unsecured or secured personal loan which doesn’t require a guarantor is a non-guarantor loan.

But, in most cases, loans that are specifically marketed as ‘non-guarantor’ loans are typically bad credit loans for those who don’t want to use, or don’t have, a guarantor.

With these types of loans, you can expect interest rates to be a lot higher than on a standard loan.

Mature couple looking at their laptop

What’s the difference between a secured loan and a non-guarantor loan?

With a secured loan, you borrow money and offer up an asset, usually your home, as security.

It lowers the risk for the lender because they know they have a way of getting their money back if you stopped repaying your loan.

If you fail to keep your repayments on a secured loan your home could be repossessed. 

An unsecured no-guarantor loan will not require you to use something you own as collateral. But you won’t be able to borrow as much as you potentially could with a secured loan, plus interest rates will be a lot higher.

What are the advantages and disadvantages of loans without a guarantor?

Before deciding whether it’s the right choice for you, always weigh up the pros and cons.


  • You won’t need to find a guarantor, which means there’s no risk of putting a strain on a valued relationship if you fail to make payments
  • You might be able to access funds faster as only you need to apply, rather than you and your guarantor. The money could even be in your bank account the same day
  • They can be a quick and practical option for emergency expenses when you don’t have time to find a guarantor, such as needing to buy a new boiler or repair your car
  • You may not want to use a guarantor as you don’t want other parties to know about your finances


  • You’re solely responsible for paying off the loan, so there’s no safety net if you can’t meet repayments and your debt starts to spiral
  • Usually, you won’t be able to borrow as much money as you would be able to with a guarantor loan
  • If you have bad credit, your loan options may be limited, so you might not even be able to find a non-guarantor loan

Can I get a non-guarantor loan with bad credit?

There’ll be fewer options to choose from, but there are lenders who offer non-guarantor loans to customers with a low credit score.

As well as looking at your credit score, these lenders will consider affordability. If they see that you have an income and determine that you’d be able to afford the monthly repayments, then you could be offered a loan.

The loan will come with a high interest rate though, so you need to be absolutely sure you can comfortably afford the repayments. Also, it’s always a good idea to have a contingency plan in place in case you’re hit with expensive household bills or made redundant.

If you manage your money well and make your payments on time, you can expect your credit score to improve, which can give you access to better rates on credit in the future.

Is a loan without a guarantor a payday loan?

A payday loan is a type of non-guarantor loan.

They’re a short-term loan designed to be repaid on your next payday.

New regulations mean that these types of loans can have longer terms of up to 12 months and, though they come with extremely high interest rates, there will be caps on fees and charges.

They’re one of the most expensive ways of borrowing, so it’s best to avoid them if you can.

Is it more expensive to get a loan without a guarantor?

Interest rates can be high on loans that are marketed as non-guarantor loans, which makes them a pricey way to borrow.

It’s worth exploring all other options before committing.

Who can be a guarantor?

If you’re considering taking out a guarantor loan, then there are some eligibility requirements that will differ between lenders. But typically, guarantors must:

  • Be over 18 or 21 (depending on the lender)
  • Be a permanent UK resident
  • Hold a UK bank account separately from the borrower
  • Have a good credit history
  • Have a regular income

Additionally, some lenders may require that the guarantor is a homeowner, though that’s not always the case.

It could mean you get offered a lower rate of interest on the loan if they do own their own home, though. However, if the loan is secured against their home, they could lose it to repay the debt if you fail to pay off your loan.

Is a loan without a guarantor right for me?

Before applying for any loan, ask yourself these questions:

Do I really need this loan?

Is there another way to access the money I need? Think about whether a loan is the best option for your circumstances. There might be another way, for example, could you wait until you’ve saved up the money? Could a friend or family member help? Remember that even if you borrow from a loved one, it’s important to draw up a loan agreement, so everyone is aware of what is expected of them.

If you’re not sure what to do, you can get free financial advice from Citizens Advice, National Debtline, MoneyHelper or StepChange debt charity.

How much money do I need to borrow?

If you decide on taking out a loan, you’ll need to figure out how much you need. Our loan calculator can help you see how much you could realistically afford to borrow, as well as what it could cost you per month and overall.

Avoid borrowing more than you actually need or you’ll be paying unnecessary interest.

Lenders will want to know what you plan to use the loan for, like home improvements, funding a wedding or buying a new car.

There might be exclusions for how you can use the money. Some lenders won’t allow you to use a loan for a house deposit, for example. It’s always best to be honest about your intentions.

What’s the interest rate and is it fair?

Annual percentage rates (APRs) on loans can vary enormously. In general, you can expect lower rates on guarantor loans than on non-guarantor loans, because there’s less risk to the lender.

Be sure to compare loans from across the market and avoid those with very high APRs. The higher the rate, the more interest you’ll pay.

Also remember that the actual APR you’ll be offered won’t necessarily be the representative APR. This only needs to be offered to 51% of successful applicants to be used in advertising, the rate you’ll receive will depend on your credit score and a few other factors.

Read reviews on the company or financial institution offering the loan before you commit.

Can I afford the repayments?

First, use our loan calculator to find out what the monthly repayment amount is likely to be for how much you want to borrow. Set this figure aside.

Then, calculate how much of your monthly income is left after you’ve paid your usual expenses and bills. Set aside a little extra money for savings or to use as emergency funds, like for unexpected vehicle or home repairs. Then consider whether what’s left of your income would be enough to make the monthly loan repayments comfortably.

What are the terms and conditions?

Read them to find out important information like the repayment amount, interest rate, what happens if you can’t pay it back and if there are any additional fees - such as repayment penalties or admin fees. These extras can end up making your loan more expensive than it first appears.

Use an eligibility checker before applying for a loan, this is a soft search on your credit report which will help identify the loans you’re more likely to be accepted for without affecting your credit score. You can then look at each loan in more detail, including the terms and conditions, to find the right fit for you.

How to get a loan with no guarantor

Look after your finances and you're less likely to need a guarantor for a loan or be limited to expensive finance that's marketed as a non-guarantor loan.

To be accepted for a loan with no guarantor you’ll usually need:

  1. A good credit score

    A good credit rating shows lenders that you’re reliable when it comes to paying back debt

  2. A low debt-to-income ratio

    Debt-to-income ratio is the amount of your wages that you use to pay off your debts. So, a lower ratio will give you a better chance of being accepted for loans

  3. Stable income and employment

    Proving you have a regular income reassures lenders that you’ll be able to afford the loan repayments

Frequently asked questions

Generally, non-guarantor loans for people with poor credit offer small cash sums from a few hundred pounds up to about £5,000, though this will differ between lenders.

A non-guarantor loan can be either secured or unsecured.

You may be able to access higher loan amounts with a secured loan, but you risk losing your home if you default on your payments.

Yes, you can repay your loan at any point, although check the small print as you may be charged early repayment fees (sometimes equivalent to a month or two interest), depending on the terms of the agreement.

In some cases, you could receive money in your bank account the same day.

You should contact your lender as soon as possible before your situation spirals out of control. They may offer to give you more time to pay off the loan, or they may roll the loan over with a new, revised agreement. Be aware you may be charged extra interest or fees, though.

You can also get free financial advice from Citizens Advice Bureau, National Debtline, or StepChange debt charity.

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