Guarantor Loans for Bad Credit

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Affordable £2,000 to £25,000 Online!

Representative Example: Borrow £10,000 for 24 months, 24 monthly repayments of £578,37. Total repayment £13,880.88, interest rate p.a. (fixed) 39.7%. Representative APR 39.7%.

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Bad credit

There are many reasons why you are looking for a guarantor loan; you may have bad credit or you want a cheaper interest rate alternative. Here is why you should apply for a guarantor loan with Personal Loans Now:

fast with a guarantor

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Low APR Rates

Loans for people with bad credit

For Bad Credit Applicants


What is a guarantor on a loan?

A guarantor on a loan is where the primary borrower nominates a family member or friend to act as a guarantor. The guarantor agrees to back up a borrower’s loans if they cannot make a repayment. People usually apply for a guarantor loan if they have no credit history or a bad credit score and want a higher chance of getting accepted.

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How does a guarantor loan work?

A guarantor loan works very similarly to an unsecured loan, but with additional loan security. If you choose to borrow a guarantor loan, you are still responsible for making the regular and on time repayments, and at Personal Loans Now we undertake the appropriate affordability checks to ensure this will be possible. However, with the appointment of your guarantor, it gives the applier credibility and the lender ‘insurance’ especially if you are applying with a limited credit history or a bad credit score. However, life does not always go to plan, and if you default in your loan, we approach your guarantor to make the repayments for you.

how a guarantor works -with personal loans now

Who can be a guarantor?

Your guarantor:

  • Could be a close relative, friend or co-worker,
  • can’t be a spouse or someone you share a joint account with
  • must be in full-time employment
  • should have a good credit history
  • should be over the age of 21 (although some lenders accept over 18 or only over 25, others don’t accept guarantor’s over 75 years)

Can my guarantor have bad credit?

No, simply because guarantor loans are tailored for the bad credit borrower. As a lender, we would need to see that one of you has a good credit score. Safe and responsible lending is our priority, and we are sensitive that your guarantor will have to repay your loan if you default. We have to ensure they can afford to repay the loan as well. We do this by researching both you and your guarantor’s credit report and affordability. The FCA recommends we perform credit checks as part of their regulations.

Is a non-homeowner guarantor eligible?

You or your guarantor do not need to be homeowners, but interest rates can be more expensive if you are both tenants. We also offer homeowner loans in the UK which have really high acceptance rates.

Your guarantor is taking on a big responsibility that potentially affects their finances and credit report. Before signing, make sure your guarantor is aware of the risks and their responsibilities.

5 Top FAQ’s About Guarantor Loans UK

You can borrow larger amounts when you have a guarantor as the risk of repayment is lower than a no guarantor loan. However, we still run affordability checks after submitting your application to ensure you can still afford the larger amount and you can make your repayments on time.
Our guarantor loans are usually cheaper than the other unsecured cheap personal loans we sell because there is a lower risk for us. Our interest rates are between 35.5% – 99% and the amount of interest you have to repay will vary on the amount you borrow and on you and your guarantor’s credit report and affordability. Here is a representative example: Borrow £10,000 for 24 months, 24 monthly repayments of £578,37. Total repayment £13,880.88, interest rate p.a. (fixed) 39.7%. Representative APR 39.7%. You can repay your loan as early as you want to save on the interest. Warning: A Late repayment can cause you serious money problems. For help, go to
The repayments work the same as every other unsecured loan. As the one who took out the loan, it is your responsibility to repay. You are expected to repay in your ordinary instalments, and if you are struggling with your repayments, it is best to get in contact with us before your instalment is due to arrange a repayment plan which does not involve your guarantor. Your guarantor is there in the rarity that you can not pay.
If you don’t have a guarantor, other loan options may suit your needs better:
  • Unsecured loans for bad credit – These loans are widely available in the UK. They are usually a bit more expensive than secured loans, as the lenders need to balance the risk. However, they provide higher rates of acceptance for people with bad credit.
  • Speak to your bank or building society – Your current financial provider may be able to offer a good credit option tailored to your circumstances. Sometimes, all you have to do is ask!
  • Credit unions – Credit unions offer a real alternative to banks for those who are looking for credit outside of the traditional methods. To qualify, you’ll need to become a member of the credit union that interests you. These institutions are also more understanding and supportive of those in financial difficulties as they are not-for-profit organisations with the sole purpose of helping their members.
  • Credit cards – If you’ve been declined a credit card with your own bank, it doesn’t mean you can’t still apply for a credit card with other banks or building societies. Keep in mind that if you have poor credit, it may be difficult finding a good credit card deal, but there are cards dedicated to people with bad credit.

We always encourage you to research all your options before signing any agreement. In some cases, Personal Loans Now guarantor loans may be the perfect option for you.

Yes, APR rates are usually lower because the risk of repayment is lower as you have a guarantor backing your loan. It is likely to be a lower interest rate than other unsecured personal loans without a guarantor.
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Guarantor Loans from Personal Loans Now

Personal Loans Now is here to help the homeowner or the tenant! Apply now for a loan amount of between £2,000 up to £25,000. If we can’t help you as a direct lender, we’ll work with Monevo to compare over 50 authorised lenders in the UK to find you the best guarantor loan. Lenders on Monevo include Amigo, Shawbrook Bank and many others. Don’t let a bad credit score stop you – apply now online and receive an instant decision and if approved, your low-interest loan today!

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Written by: Kylie Jenson
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