Compare Guarantor Loans using the Representative Payment Example and APR. We have carefully selected the lenders we feature to ensure they are responsible and compliant. Simply click on the lender of your choice and you will be taken to their website where you can apply.

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UK Credit Loans

UK Credit are one of the leading guarantor loan lenders in the UK. Borrow up to £10,000, no upfront fees, 37.9% APR and applications won't affect your credit score.  
Loan Amount£1,000 to £10,000Representative APR37.9% APR (£5,000 to £10,000)Loan Term1 year to 5 years Representative Example: The Representative APR is 39.9% APR (fixed) so if you borrow £4,000 over 4 years at a rate of 34.05% p.a (fixed) you will repay £153.60 per month & £7,372.80 in total.
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TrustTwo Guarantor Loans

TrustTwo is one of the most popular guarantor lenders in the UK. Customers can borrow up to £7,500, repay over 5 years and homeowner and tenant guarantors are accepted.  
Loan Amount£1,000 to £7,500Representative APR39.9% APR (£3,000 to £7,500)Loan Term12 months to 5 years The Representative APR is 39.9% APR (fixed) so if you borrow £4,000 over 3 years at a rate of 34% p.a (fixed) you will repay £178.69 per month & £6,432.75 in total.
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Amigo Loans

Amigo Loans is the largest guarantor loan lender in the UK. You may have seen their adverts on TV or heard their catchy jingle on the radio. The Bournemouth-based company has approved over 160,000 loans since they were founded in 2005.
Loan Amount£500 to £7,500Representative APR49.9% (£500-£7,500)Loan Term1-5 years Representative Example: The Representative APR is 49.9% APR (variable) so if you borrow £4,000 over 3 years at a rate of 49.9% p.a (variable) you will repay £195.16 per month & £7,025.76 in total.
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TFS Loans

TFS Loans let you borrow up to £15,000 and repay in monthly instalments. They are an established guarantor lender and have been around since 2009.  
Loan Amount£1,000 to £15,000Representative APR39.9% APR (for loans £8,000 - £15,000)Loan Term2 years to 7 years Representative Example: The Representative APR is 39.9% APR (fixed) so if you borrow £8,000 over 5 years at a rate of 39.9% p.a (fixed) you will repay £279.20 per month & £16,752.00 in total.
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SUCO Guarantor Loans

SUCO are a leading guarantor lender specialising in approving loans for customers with bad credit. Borrow up to £15,000 with no upfront fees.  
Loan Amount£1,000 to £15,000Representative APR39.9% APR (for loans £8,000 - £15,000)Loan Term4 to 7 years Representative Example: The representative APR is 39.9% APR (fixed) so if you borrow £8,000 over 5 years at a rate of 39.9% p.a. (fixed) you will repay £279.20 per month & £16,752.00 in total.
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Buddy Loans

Buddy Loans are the new, friendly guarantor lender. Borrow up to £7,500 with no fees and a friendly service. All  credit considered. Homeowner and tenant guarantors accepted.
Loan Amount£1,000 to £7,500Representative APR49.9% APR variable (£1,000 to £3,000)Loan Term1 year to 5 years The Representative APR is 49.9% APR (variable) so if you borrow £2,500 over 24 months at a rate of 41.16% p.a (fixed) you will repay £154.54 per month & £3,750.17 in total.
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1Plus1 Guarantor Loans

1Plus1 are a trustworthy and reliable lender offering guarantor loans ranging from £500 to £5,000 that are repaid over 12 to 60 months in equal instalments.  
Loan Amount£500 to £5,000Representative APR45.4% APR variable (£500 to £5,000)Loan Term1 year to 5 years The Representative APR is 45.4% APR (fixed) so if you borrow £3,000 over 3 years at a flat rate of 23% p.a (fixed) you will repay £140.84 per month & £5070.24 in total.
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MASA Loans

MASA loans is part of George Banco Ltd and offers guarantor loans from £1,000 to £7,500 repaid in monthly instalments over 1 to 5 years. No admin or upfront fees for applying.  
Loan Amount£1,000 to £7,500Representative APR49.7% (for loans £1,000 to £7,500)Loan Term1 year to 5 years Representative Example: Borrow £7,500 over a period of 36 months (3 years), repaying at a rate of £365.48 each month, the total repayment amount including admin fees and interest, will be £13157.28. Fixed interest rate of 31.9% and a Representative APR of 49.7%.
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Quick Cash Club Loans – Small Guarantor Lender

Quick Cash Club Loans specialise in smaller guarantor loans of £100 to £750. Simply find a friend, relative or colleague to back up your loan and borrow the money you need, regardless of your credit score.  
Loan Amount£100-£750Representative APRfrom 304%Loan Term6, 9, 12 or 24 months Borrowing £550 over 12 months, repaying £90.86 per month, total repayable £1090.32. Interest rate 150% p.a. (variable). Representative 346.79% APR (variable)

Guarantor Loans are ideal for those with bad credit or no credit history. By having a guarantor with a good credit history, you are able to borrow the money you need for a special purchase or emergency purpose. Plus, repaying your guarantor loan on time will improve your credit rating so for those with poor credit history, it will better your credit score and make it easier to access finance elsewhere in the future.

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TrustTwo Guarantor Loans

TrustTwo is one of the most popular guarantor lenders in the UK. Customers can borrow up to £7,500, repay over 5 years and homeowner and tenant guarantors are accepted.  
Loan Amount£1,000 to £7,500Representative APR39.9% APR (£3,000 to £7,500)Loan Term12 months to 5 years The Representative APR is 39.9% APR (fixed) so if you borrow £4,000 over 3 years at a rate of 34% p.a (fixed) you will repay £178.69 per month & £6,432.75 in total.
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SUCO Guarantor Loans

SUCO are a leading guarantor lender specialising in approving loans for customers with bad credit. Borrow up to £15,000 with no upfront fees.  
Loan Amount£1,000 to £15,000Representative APR39.9% APR (for loans £8,000 - £15,000)Loan Term4 to 7 years Representative Example: The representative APR is 39.9% APR (fixed) so if you borrow £8,000 over 5 years at a rate of 39.9% p.a. (fixed) you will repay £279.20 per month & £16,752.00 in total.
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Buddy Loans

Buddy Loans are the new, friendly guarantor lender. Borrow up to £7,500 with no fees and a friendly service. All  credit considered. Homeowner and tenant guarantors accepted.
Loan Amount£1,000 to £7,500Representative APR49.9% APR variable (£1,000 to £3,000)Loan Term1 year to 5 years The Representative APR is 49.9% APR (variable) so if you borrow £2,500 over 24 months at a rate of 41.16% p.a (fixed) you will repay £154.54 per month & £3,750.17 in total.
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1Plus1 Guarantor Loans

1Plus1 are a trustworthy and reliable lender offering guarantor loans ranging from £500 to £5,000 that are repaid over 12 to 60 months in equal instalments.  
Loan Amount£500 to £5,000Representative APR45.4% APR variable (£500 to £5,000)Loan Term1 year to 5 years The Representative APR is 45.4% APR (fixed) so if you borrow £3,000 over 3 years at a flat rate of 23% p.a (fixed) you will repay £140.84 per month & £5070.24 in total.
Apply Now

Quick Cash Club Loans – Small Guarantor Lender

Quick Cash Club Loans specialise in smaller guarantor loans of £100 to £750. Simply find a friend, relative or colleague to back up your loan and borrow the money you need, regardless of your credit score.  
Loan Amount£100-£750Representative APRfrom 304%Loan Term6, 9, 12 or 24 months Borrowing £550 over 12 months, repaying £90.86 per month, total repayable £1090.32. Interest rate 150% p.a. (variable). Representative 346.79% APR (variable)

What is a guarantor loan?

A guarantor loan refers to borrowing a few hundred or thousands pounds from a lender but there is a guarantor involved, usually a friend, family member or colleague who agrees to ‘guarantee’ repayment to the lender if the borrower cannot repay.

To recap, there are three people involved in a guarantor loan as shown in the diagram below:

The Borrower, The Guarantor and The Lenderguarantor-loans

The three parties are connected. The Borrower can receive and pay money to the lender. In some cases, the Guarantor initially receives the loan that is funded and has the choice to give it to the Borrower or change their mind and give it back to the Lender. And of course, the Lender gives money and and receives money from both the Borrower and the Guarantor.

From the lenders point of view, this type of loan provides less risk than your standard loan because if the customer cannot repay, they assume that the guarantor can cover the cost. Since the lender feels more confident to lend, this leads to a higher approval rate than other types of loans.

Guarantor Loans for bad credit

The loans we feature are common for people with bad credit who may have been denied loans from other traditional lenders. Most lenders in this industry do not run credit checks as part of the application taking into account that a guarantor can help cover repayment. Since a credit check is not run, those applicants with low credit scores will still have a good chance of getting approved.

What is great about this product is that it gives borrowers who have bad credit an opportunity to prove their creditworthiness and improve their credit score. By repaying on time, the lender will feed back the information to a credit reference agency such as Experian or Equifax and this will improve the customer’s credit score.

Best guarantor loans with low APR

We feature the best guarantor loan lenders and this is based on the fact that they are registered companies in the UK, have a valid consumer credit license and strictly adhere to the regulatory requirements of the Financial Conduct Authority (FCA).

We try to display lenders that have a low APR, which is typically 49.9% or 39.9% and can be found using our comparison table above. Other cost factors to consider include the representative example, to get an idea, and the length of the loan as the longer you have the money, the more interest accumulates over time.

Other characteristics  include being able to repay early at no extra cost. Since a guarantor loan can last up to 5 years, you may not require the loan for that long. If you need the funds to pay for an emergency or get your finances back on track, you may only require the loan for a few months. It would make sense to repay the loan early and since the loan is usually based on a daily interest rate, it may be cheaper to repay the loan early. The best lenders have no early repayment fees but some lenders may charge a fee for clearing your debts sooner.

Am I eligible?

The application for the lenders we offer is completely online. To be eligible, you must have the following criteria:

  • Over 18 years of age
  • Living and working in the UK
  •  Have a working email address
  •  Have a working debit account
  • Have a guarantor

Once you click through to the website of one of our lenders, it will take around 5 minutes to complete the application and you will asked enter the contact details of both the borrower and the guarantor. Some lenders will run credit checks believing this is vital to deciding whether you will receive a loan or not. Other guarantor lenders will not run credit checks because they think that having a guarantor provides enough security for your loan. There are always affordability checks that are run as part of the process – this refers to taking all your income and expenditure and deciding how much you are able to borrow and how much you can afford to repay. Good affordability checks provide the customer with just the right amount they can afford and making sure that they are not asked to borrow too much. Lenders will typically request a bank statement from both the borrower and the guarantor to get a better idea of their affordability.

Provided that you have passed all their checks, to complete the final stages, the lender may carry out a phone call to confirm some details. If the main borrower is unable to repay their loan, the guarantor is liable to make the repayment on their behalf. That is why a phone call is important for both sides to ensure they fully understand the terms and conditions. An email is sent to both parties and there will be a unique verification link which will take you to an electronic loan agreement with all the terms and conditions. To save the hassle of printing things off, signing them and posting them off, the entire agreement is completed online.

The funds are usually sent on the same day but the money is deposited into the debit account of the guarantor. He has the choice to decide whether he wants to transfer the funds to the borrower or change his mind and give the money back to the lender. This is a standard measure to ensure the guarantor is a real person and is fully aware of the responsibilities at stake. The borrower will make the repayments in monthly instalments and there is usually the option to repay early with some lenders not charging any fees for early repayment and some putting a small penalty in the place.

For more information, visit The Independent’s Guide to Guarantor Loans

How are Guarantor Loans Different to Payday Loans

The main differences include the loan amount, duration, interest and the extra person part of the loan agreement.

A payday product simply involves the borrower and the lender and is designed to be repaid at the end of the month on your next pay date, so overall, it should only last 2-4 weeks to cover emergency expenses.

By comparison,  the guarantor product requires an extra person as part of the transaction – and if that extra person has a good credit rating, it means that you may be able to borrow more and for longer. As the loans last up to 7 years, they give those with less than perfect credit the time they need to repay, improve their financial situation and credit rating. See the table below for the differences between typical guarantor and payday loan products:

guarantor-loan-comparison-table

Source: https://www.mrlender.com/payday-loans and http://www.guarantorloans.com/

How Our Site Works

Our comparison table gives you a full overview of the different rates and terms available. We constantly update our list of lenders to ensure that they are the most compliant, responsible and are actively lending funds and not just going to decline your application. The sites we feature are fully licensed, do not charge upfront fees and are certainly not brokers.

We have an individual page for each lender that we feature to give you a better understanding of the service they offer and a bit more information about the company. It is important to understand that each lender has their own pricing and by comparing effectively, you may be able to save a few hundreds pounds on your loan. We only want to show you lenders based in the UK so you have lenders that you can trust and can contact them easily whenever you need to.

Our site is completely free to use and  because we do not ask you to fill in any details, we will never pass on your details to third party companies.