Guarantor Loans

Representative Example:

Borrow £3,500 over 12 months, repay £311.81 per month, total repayable £3,731.96. Interest rate 12.7% (variable). Representative APR 12.7%.


Late repayments can cause you serious money problems. For help, go to moneyadviceservice.org.uk.

Guarantor loans can help you borrow up to £10,000 with the help of a guarantor to co-sign your loan agreement. This type of finance has become increasingly popular in recent years for people with bad credit ratings or no credit scores as a way of gaining access to finance.

The loan application is completed in less than 5 minutes and you just require the basic name, address and contact details of the person you require to be your guarantor – and we will take care of the rest. To get an instant decision, simply click on apply now.

How Does a Guarantor Loan Work? 

The main borrower simply needs to find a person they know to ‘guarantee’ repayments on their behalf. So if they miss any payments, the guarantor can step in and cover the costs. For this reason, having a parent, sibling or spouse is usually the most effective type of guarantor.

You ideally need to find a guarantor with a good credit rating, stable income and job, and ideally a homeowner status. If you have a good quality guarantor, its gives your application a lot of credibility and the lender feels confident that they will be able to fund your guarantor loan and recover their full repayments.

Key Features 

  • Borrow £1,000 to £10,000
  • Repaid over 6 to 24 months
  • Representative APR 12.7%
  • Loans funded within 24 hours
  • Require a guarantor with good credit rating
  • Money paid upfront in one lump sum
  • We work with direct lenders
  • No upfront fees

What Can Payday Bad Credit Offer?

  • Guarantor loans £1,000
  • Guarantor loans £5,000
  • Guarantor loans £10,000

Why Should I Apply for Guarantor Loans Online? 

Guarantor loans are commonly used by people who may have been turned down for finance from mainstream lenders and banks. If you have a poor credit history or have no credit to your name, finding money when you need it can be very difficult. However, if you can find someone you know to be your guarantor, ideally a family member or close friend with a good credit score and stable income, you can apply for a guarantor loan and borrow between £1,000 to £10,000.

The guarantor can get the satisfaction of helping out a close relative or friend who needs to borrow money – and there are no costs to the guarantor. Plus, if the borrower can get into the habit of making repayments on time every month, the information will be reported back to the credit reference agencies and their credit score will improve as a result, helping them access more easily in the future.


What Are Guarantor Loans Used for? 

Guarantor loans are used for more lifestyle purposes, rather than immediate expenses and emergencies (emergency loans are more suitable for immediate and unexpected needs.) This source of finance is commonly used for debt consolidation, starting a business, buying a new car, paying for a wedding, a family holiday or home improvements. With loan terms ranging from 6 to 24 months, you have the flexibility to stretch the duration of your loan and use it for a longer period of time – which is perfect for large purchases and lifestyle choices.


How Much Can I Borrow with a Loan with a Guarantor?

You can borrow up to £10,000 with a guarantor loan and the amount you can borrow is based largely on your own monthly income but also the quality of your guarantor. If you have a guarantor who is a homeowner, has a good credit score and a stable income, this will maximise your chances of approval and borrowing the highest amounts.

Most guarantor lenders prefer to have guarantors who are homeowners because they have a permanent address and should have demonstrated a stable income and credit score to be eligible for a mortgage. If you have a tenant guarantor, the lender will still be able to offer you a loan, but you may have a maximum threshold of £10,000.

What is the Eligibility Criteria? 

  • Borrower must be over 18
  • Borrower must have stable income and employment
  • Borrower must be able to afford repayments
  • Guarantor must be over 25
  • Guarantor must have good credit score, stable income and employment
  • Guarantor should be homeowner (although tenants accepted too)
  • Both parties should have valid UK bank account
  • Both parties should have UK mobile and email address

What Does the Guarantor Have To Do? 

The responsibility of the guarantor is to cover any missed repayments by the main borrower. During the application process, the guarantor will need to confirm their involvement and knowledge of the arrangement and be required to co-sign the loan agreement electronically. Any missed repayments by the borrower are not automatically paid for by the guarantor. The guarantor is only used as a last resort and the lender will usually try to collect funds from the borrower as much as possible.

Why Apply with a Guarantor Loans Direct Lender? 

At Payday Bad Credit, we with guarantor loans direct lenders – so you have peace of mind knowing that your loan will be funded directly by the lender and all future correspondence and repayments will be handled by that company. We offer an effective way to help borrowers find guarantor loans for bad credit and we do not charge any upfront fees or pass on your information to other companies without your consent.

If you would prefer to not use a guarantor, see no guarantor loans for more information.

Why Use Payday Bad Credit for Guarantor Loans?

Payday Bad Credit is passionate about helping good people with bad credit find good loans, even if they have poor credit. We offer an online application form which allows you to access the whole of the bad credit market – and get the best pre-approved quotes online. There are absolutely no fees for using our service and applying will not have any impact on your credit score. Successful customers can receive an approved loan decision in minutes and receive funds transferred within 24 to 48 hours.



Representative example:

Borrow £3,500 over 12 months, repay £311.81 per month, total repayable £3,731.96. Interest rate 12.7% (variable). Representative APR 12.7%.

Payday Bad Credit is a trading style of Western Circle Limited – Company Registration Number: 7581337. We are fully authorised and regulated by The Financial Conduct Authority.
FCA full permission license: 714479
ICO Registration Number: Z3305234

Payday Bad Credit terms and conditions apply.

Applicants must be 18 or over. All loans are subject to affordability, applicant verification and traditional credit checks via various national databases by Payday Bad Credit responsible lending policy. Loan limit maximum of £10,000.

In most cases, loan decisions may take up to 30 minutes during office working hours.
If your bank does not support Faster Payments, funds will be sent to your account the same day as approval so long as you’re approved by 16:30.