Last post: Sep 12, 2017
While your nearest and dearest may be eager to help support you by acting as a guarantor for your loan, there are a few cases in which some individuals may not be able to be your guarantor. Here's a helpful checklist...
Why choose a guarantor loan?
If your credit score has taken a few knocks and bruises over the years, accessing finance isn't always straightforward. Whether a former partner has left you with less-than-fond financial memories, or a rocky patch means your record isn't quite perfect, there are all sorts of reasons why your credit score might make borrowing a little bit trickier.
This is one key reason why many people choose to look into guarantor loans. These loans allow consumers to access the credit they need, by providing a guarantee from another, more financially "in the clear" individual.
Choosing a guarantor
Lots of people can be your guarantor, but there are some important exceptions to be aware of before you take that important step and "pop the question".
Here are some people who cannot be your guarantor:
- Individuals below 21 years of age
- Your spouse or partner (if they are not 100% financially independent from you)
- Non-UK residents
- Individuals without a UK bank account
- Individuals without an after tax income of at least £1,000pcm (in most cases)
- Individuals with a poor credit rating
- Individuals guaranteeing a loan over £6,000 without a property
Further information
From family and friends, to colleagues; guarantors can come in all shapes and sizes. As long as you and your guarantor are confident you can repay your loan and meet your terms, you can access finance without a perfect credit score. If you fail to meet repayments, however, your guarantor will become liable for the sum, fees, and interest.
We help finance seekers arrange guarantor loans. Available up to £10,000 for loan periods up to five years, the guarantor finance we specialise in is accessible and easy to use. Learn more about how it all works and apply here.
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