Bad Credit Guarantor Loans

£50 - £2,500 paid out by 02:52am

How much would you like?

£

Representative 305.9% APR

Representative Example: £400 borrowed for 90 days. Total amount repayable is £561.92 in 3 monthly instalments of £187.31. Interest charged is £161.92, interest rate 161.9% (variable). Representative 305.9% APR. We are a broker not a lender. We don't charge fees. We don't sell your personal information.
*MoneyWorld does not perform a credit check but the lenders we're partnered with will perform what is known as a "soft search" to determine your eligibility. Should you choose to accept the loan terms you're offered, a full credit check will be carried out.

How Bad Credit Guarantor Loans Work – A Simple Beginner’s Guide

Guarantor loans are a borrowing option that not enough people know about, and it can be a great way to get money without having a high credit rating. These loans are fairly unique in a number of ways, and they have become very popular with people in the UK. You will need to learn a few basic things about bad credit guarantor loans so that you can increase your chances of getting one.

Guarantor Explained

The “guarantor” is the person who essentially acts as the co-signer for the borrower. This person agrees to take on the rest of the loan payments if the borrower can no longer do so. There is a lot of responsibility associated with being a guarantor.
Some of the requirements of a guarantor include:

  • Stable income: The person who acts as the guarantor for a loan must be able to demonstrate that they have stable and adequate income. The lender will not approve someone as a guarantor if they cannot submit proof of this. They need to make enough to pay back the remainder of the loan if the borrower defaults.
  • Good credit: While the borrower doesn’t need to have good credit, the guarantor does. The lender will take a close look at the person’s credit to see if their score is high enough. When you are looking for someone to act as your guarantor, you will need to make sure they have good credit.
  • Solid job history: The employment history of the guarantor is something else that will come into play. This person will need to submit proof of a stable job history to the lender before they can be approved. A solid employment history is viewed by lenders as a sign of stability and reliability.

How much would you like?

£
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Representative Example: £400 borrowed for 90 days. Total amount repayable is £561.92 in 3 monthly instalments of £187.31. Interest charged is £161.92, interest rate 161.9% (variable). Representative 305.9% APR. We are a broker not a lender. We don't charge fees. We don't sell your personal information.

Using Guarantor Loans

Bad credit guarantor loans can be used for anything, but you shouldn’t take one out on a whim. It is important to think about whether or not you really need the loan before you make a decision. Many people use these loans to purchase a car or consolidate their debt. If you have a lot of different credit card bills you are behind on, this can be a good way to lower your monthly payments. A guarantor loan can combine individual debts for a lower overall interest rate, making them a lot more manageable.

Interest on Guarantor Loans

Interest rates on guarantor loans can be anywhere from 40-50%. These loans come with much higher rates than bank loans, but they are a lot easier to get. You will also want to consider that the average guarantor loan is much less costly than a payday loan. One of the best ways to get a good interest rate on your loan is by finding the right lender to borrow from.

Borrowing Amounts and Terms

Those who get a guarantor loan can borrow anywhere from £1,000 to £7,000. The terms for these loans vary, but they can go up to 4 or 5 years in some cases. The maximum amount that you will be allowed to borrow with a guarantor loan depends almost entirely on your guarantor. The better the third party’s credit and income is, the more you will be allowed to borrow. The length of the loan term will be determined by the amount you have to pay back. Larger loans tend to have longer terms. A longer term will make the loan much easier for you to pay back.

What can MoneyWorld.co.uk offer you?

Why Use Us?
What is the max amount?
Up to £2,500
No hidden charges
What's the approval rate?
95%
High approval
Bad credit accepted?
Yes
All welcome
Are transfers same day?
Yes
24/7/365 Service
Do I pay back in instalments?
Your choice
Easy repayments

Where to get Guarantor Loans

Private lenders tend to give out guarantor loans, and there are many of them to choose from. MoneyWorld can help you get one of these loans, and the application process couldn’t be easier. These loans have gone through the roof in terms of popularity in the UK because of everything they offer. While approval is never guaranteed, many people get guarantor loans every single day. You don’t want to choose just anyone to borrow from, because not all private lenders will provide you with the kind of deal you’re looking for. Guarantor loans are a great way to get the money you need with bad credit, but you will need to find the right person to sign on.