How unsecured guarantor loans work backed by Guarantor – the UK registered direct guarantor loan lender we use offers loans from £500 up to £5,000 over a one to five year period at an APR of 48.0% variable.
There is no credit scoring for the person applying, no early settlement charge or hidden fees.
Find out how unsecured guarantor loans work backed by guarantor
The loans described on this page are called Guarantor Loans. As responsible lenders, the guarantor loan company aim to do their utmost to give you a helping hand and Guarantor Loans UK provides the re-assurance that the loan will be re-paid in a timely and a regular manner.
Representative 277.5% APR - Representative Example: Amount of credit: £750 for 12 months at £119.21 per month. Total repayment of £1430.52. Interest: £680.52. Interest rate: 140% pa (fixed). 277.5% APR Representative.
You need a loan and they need to know that the loan will be re-paid, so the lender requires that the loan they offer is backed by a friend or family member who is prepared to back up your loan application.
Who is eligible?
Your Guarantor does NOT have to be a home-owner, but must be aged 18 to 75. They must have a good credit rating and be able to demonstrate a regular source of income or sufficient cash reserves to be able to make payments if necessary.
Your Guarantor will typically be a good friend or family member who is prepared and able to help you borrow.
Anyone above the age of 18 is eligible to apply for a Guarantor loan, provided they can supply an appropriate Guarantor who will guarantee the loan.
The credit score of the applicant is not taken into account, but as a responsible lender they will endeavour to make sure that the Guarantor loan is affordable to the applicant.
As responsible lenders, they need to make sure that they are not lending in a way which could later cause more problems for the borrower. The Lender offer loans that are backed by a Guarantor, which is someone who will make the repayments if you find you are unable to.
In this way they can help people who have had all credit types problems or perhaps have never had finance before.
Start by speaking to friends and family members. Explain to them why you need the loan, how you intend to pay it back and ensure repayments can be made on time and ask them to review the Guarantors responsibilities below.
Your Guarantor does not have to be employed, but must be able to demonstrate that they have a source of income to make repayments if necessary.
This could be via a pension, cash in a bank account or other income. Your Guarantor will typically be a friend or relative who trusts you and is willing to support your loan application and guarantee your loan.
Being a Guarantor
If you are considering becoming a Guarantor, here is some of the information you need to enable you to make that decision to help a friend or family member.
A Guarantor is a person which guarantees a loan for someone who is unable to secure a loan on their own, usually because of poor credit or no credit history.
If, for example, you became a Guarantor for a loan to a friend or family member, and they couldn’t, or decided not to make the re-payments, then you as their Guarantor would be held liable for the remainder of the loan.
You may be in a position to lend the money to the Borrower yourself, but you want to help them take responsibility to manage the loan themselves and make timely repayments to the lender, rather than to you.
You would want to help the Borrower to gain control of their finances, and if all goes well and they make repayments on time, this could help to rebuild their credit score. Of course, there is a certain amount of risk to you by providing such a helping hand.