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No Guarantor Loans in the UK

How bad credit loans work without asking someone else to guarantee them

A no guarantor loan is simply a loan where you do not need another person to guarantee repayments if you are unable to pay. For many people with poor credit, this removes an extra barrier to borrowing – but it does not remove the need for affordability checks and responsible lending.

This page explains:

  • what no guarantor loans are
  • how lenders assess applications without a guarantor
  • how this fits within responsible bad credit loans
  • when borrowing may not be suitable

For a full overview of eligibility, costs, and safeguards, start with our main page on bad credit loans in the UK.

What is a no guarantor loan?

A no guarantor loan is an unsecured loan, meaning:

  • you borrow in your own name
  • no family member or friend is asked to support the loan
  • responsibility for repayment sits entirely with you

Most bad credit loans are structured this way. Instead of relying on a guarantor, lenders focus on your current financial situation, not just your past credit history.

Can you get a loan with bad credit and no guarantor?

There is no guarantee of approval, especially where credit history is poor. However, a guarantor is not required for consideration.

When assessing applications without a guarantor, lenders may look at:

  • your income and essential outgoings
  • existing credit commitments
  • whether repayments would be affordable over the full term
  • your recent financial behaviour

A guarantor does not replace affordability checks, and their absence does not mean checks are relaxed.

What matters more than having a guarantor

UK lending rules require lenders to focus on whether credit can be repaid sustainably, without causing financial harm.

In practice, this means:

  • affordability is more important than whether a guarantor is present
  • stable income and manageable outgoings carry significant weight
  • borrowing may be declined if repayments would be difficult to maintain

We will not offer a bad credit loan if we believe it would worsen a customer’s financial position.

FCA rules and responsible lending

The Financial Conduct Authority requires lenders to carry out a reasonable and proportionate creditworthiness and affordability assessment before offering credit. This requirement is set out in the FCA Consumer Credit Sourcebook (CONC), including CONC 5.2A.

These rules require lenders to:

  • base decisions on sufficient information
  • assess the customer’s ability to repay without hardship
  • avoid lending that could cause financial harm

This applies to all bad credit loans, whether or not a guarantor is involved.

You can read the FCA guidance here: https://www.handbook.fca.org.uk/handbook/CONC/5/2A.html

How we assess no guarantor loan applications

As part of our bad credit loans process:

  • applications are assessed individually
  • guarantors are not required
  • affordability always comes first

If we cannot offer a loan directly, we may offer the option to explore alternatives through trusted, FCA-authorised partners, but only with your consent and only where appropriate. This does not guarantee approval and does not bypass affordability rules.

When a no guarantor loan may not be suitable

A no guarantor loan may not be the right option if:

  • repayments would leave you short for essential living costs
  • you are already struggling with multiple debts
  • borrowing would be used to repay ongoing problem debt

In these situations, free debt advice may be a safer and more effective first step.

Alternatives to consider

Depending on your circumstances, alternatives may include:

  • speaking with existing creditors
  • seeking free, independent debt advice
  • reviewing your budget and prioritising essential expenses
  • exploring non-credit support options

Your next step

If you’re looking for a loan without involving a guarantor, the best place to start is our main page on bad credit loans in the UK.

There you’ll find clear information about eligibility, costs, credit checks, and risks, helping you decide whether checking your eligibility is right for you.

Important reminder: Late repayment can cause serious money problems. For help, go to moneyhelper.org.uk.