Who can get a guarantor loan

With guarantor loans, it doesn't matter if you have bad credit because the guarantor is there to back your application.

• You must be 18 years of age or older
• You and your guarantor must be UK residents
• Your guarantor must have a good credit history
• Your guarantor may need to be a home owner
• Most of the time the guarantor needs to be at least over 23 years of age
• The guarantor must be earning sufficient income to prove that they can afford the repayments
• They cannot be a guarantor for another guarantor bad credit loan

Who offers guarantor loans

• Blackheath Loans
• FLM Loans
• FLM Quick
• Guarantor Loans Online
• TFS Guarantor Loans

Process of getting a guarantor loan

The loan process may differ slightly between guarantor lenders but most guarantor lenders have an online application form for you to complete. This can usually take about 5-10 minutes. Make sure you have all of your address details, bank details and employment details to hand as they will more than likely need this.

Once you have completed and submitted this, your application will be reviewed by a company agent. If you are provisionally accepted, you will be sent loan documents including Terms & Conditions and your credit agreement. There is usually a credit agreement for the applicant to sign and one for the guarantor to sign. If the lender requests that you send extra documents to support your application, make sure you include these.

Send all of this information back to the company where they will assess your application and credit check results and make a final decision. If you are accepted for the loan, the money is usually either transferred into your guarantor's bank account for a cheque is written out in your guarantor's name.

What to consider with a guarantor loan

• How much the loan is ultimately going to cost you
• How much money do I actually need
• Whether you really need the loan
• Whether it's a better idea just to save the money and not have the loan
• Can I currently afford the repayments
• Am I at threat of losing my job or my benefit payouts
• Will it destroy the relationship with my guarantor if I do not make my repayments
• Does the guarantor completely understand what they are signing for
• Does the guarantor feel completely comfortable with what they are doing
• Does the company have good reviews
• Is the bad credit guarantor lender a reputable lender

Benefits of a guarantor loan

• You can apply if you have bad credit
• Interest rates are lower than getting a sub prime loan
• They are flexible when it comes to what you want to borrow the loan for
• If you make repayments on time they can help you rebuild your credit

Extra possible charges for a guarantor loan

Late payment – charge applied if you make a payment late on your loan

Pre-default notice – a notice informing you that if you miss another payment/s then your loan will go into default

Default fee – charge applied if you go into default on your loan

Arrears fee – charge applied if your loan goes into arrears

Early Settlement Fee – this is applicable if you wish to pay your loan off earlier than agreed in the term

Order to gain new address – if you move house and don't inform them they are able to add this extra charge onto your loan

Letter requesting payment – charge you for every letter sent to you if you miss repayments

Phone call requesting payment – charge your for every phone call to you if you miss repayments

Issue of solicitors letters – if they have to contact a solicitor because your loan is referred to a solicitor they will charge you for this

Instruction of solicitor for court proceedings – if you fall so far into arrears with your loan that it is taken to court, they are able to charge you for the action with the solicitors

See all Guarantor Loans