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The Best Guarantor Loans With High Acceptance Rates

Written by, Marija Petkova

Updated September, 19, 2022

If you’re struggling to get a loan because of no or little credit history or a bad credit score, then you might want to consider a guarantor loan.

In this article, we’ve compiled a list of some of the best UK lenders that offer guarantor loans with high acceptance rates, including for people who have less than ideal credit. 

Let’s dive in.

  • Loan amount: £1.000 – £10.000
  • Loan term: 1 – 5 years
  • Representative APR: 47.8% (fixed)
  • Guarantor can be as young as 18

  • Loan amount: £2.000 – £10.000
  • Loan term: 1-5 years
  • Representative APR: 48.9%
  • No early repayment fees

  • Loan Amount: £2.000 – £15.000
  • Loan term: 2-5 years
  • Representative APR: 33.9%
  • Poor credit applicants considered

  • Loan Amount: £100 – £5.000
  • Loan term: 1-36 months
  • Representative APR: 49.9%- 1333%
  • No hidden fees

  • Loan Amount: £2.000 – £10.000
  • Loan term: 1-5 years
  • Representative APR: 49.9% (variable)
  • No fees and charges

What Is a Guarantor Loan?

A guarantor loan is an unsecured loan that involves a third-party– a family member or a friend– that agrees to take full responsibility for the loan should the main borrower fail to keep up with repayments.

This person, known as a guarantor, will be expected to pay for the loan if you cannot.

You may be interested in: How to get a car loan with a guarantor?

How Do Guarantor Loans Work?

Guarantor loans work the same way as any other loan. 

You can apply for a guarantor loan with high acceptance online, set up a repayment plan, and start paying back the loan in regular monthly instalments. 

The only difference is that there’s third-party involvement since the guarantor also has to be part of the agreement.

Some lenders may send the funds to the guarantor and let them decide whether to pass the funds to you. Others transfer the money directly into the borrower’s account. 

The person you’ll ask to be your guarantor can be a friend or a family member that is not financially linked to you and meets the following criteria:

  • Be at least 21 years old.
  • Be a homeowner or a tenant.
  • Have a good credit score.

Whose Credit Is Checked For a Guarantor Loan?

As with any other loan, the lender will conduct a ‘soft’ and then a ‘hard’ credit search on the borrower. 

In the case of a guarantor loan, the lender will also want to check the guarantor’s credit history and score, but they’re most likely to stick with a ‘soft’ check only, which does not affect the person’s credit score. 

Although the guarantor is not the main borrower, they agree to take responsibility for repaying the money should the borrower run into financial trouble. If that happens, their credit score will plummet as a result, given that their name is on a loan with defaulted payments.

You’re unlikely to find guarantor loans with a high acceptance rate with no credit check.

What To Look Out For Before Getting a Guarantor Loan?

Here are some things to keep in mind when shopping around for a good guarantor loan:

  • Your guarantor should be a person you trust, and they should be aware of the risks that they’re taking when entering the agreement. If you’re the guarantor, you should only agree to the role if you know that the person who’s adding you to their loan is responsible.
  • Make sure that you can afford the monthly instalments. Regular payments can improve your credit score, and missing payments can get you into financial trouble. 
  • Guarantor loans generally have higher interest rates.
  • Check the fine print on your agreement. Different lenders that offer guarantor loans with high acceptance rates have different terms and conditions. For example, some lenders charge borrowers for early repayments.
  • The advertised APR usually applies to individuals with a good credit score, so check whether the rate is what you thought it would be before making a decision.

Is a Guarantor Loan Right For You?

Guarantor loans are usually a good idea for people who have little to no credit history or an adverse credit score

As such, they tend to be more expensive than standard loans, but if you borrow responsibly, they can help you build up your credit score. The downside is there are risks with guarantor loans, especially for the guarantor, so it’s important to consider all the pros and cons before agreeing to one.


  • Guarantor loans have high acceptance rates, which means individuals will have a little-to-no credit history or a bad credit score can qualify.
  • You may be able to borrow a higher amount than with other loan types.
  • With high acceptance guarantor loans, you can rebuild your credit score by keeping up with your repayments.


  • Guarantor loans with high acceptance in the UK usually have higher APRs than standard loans.
  • They’re riskier for the guarantor because they are liable for the debt when the borrower defaults on payments. If the guarantor fails to pay, they can face a CCJ or lose assets.
  • Both your and your guarantor’s credit ratings can be affected if you default on your payments.

Alternatives To Guarantor Loans

Although guarantor loans have a high acceptance rate for people with bad credit, they might not necessarily be the best option for you. 

Depending on the amount you need to borrow and your personal situation, you should also consider: 

  • Credit unions: These are non-profit organisations that have a limit on how much they can charge for a loan and can be an excellent option for people with bad credit.
  • Secured loans: A secured loan is one way to borrow against your home or car and is a great option for homeowners looking to borrow a larger amount of money.
  • Payday loans: This type of loan is the best option available if you need a small, emergency loan. If this sounds like something you’re looking for, here’s our list of the top 10 best payday loans in the UK.

Bottom Line 

Guarantor loans can be an excellent option for individuals who’re looking to borrow money but can’t find a lender that’s willing to work with them because of a lack of credit history or a bad credit score. 

These types of loans require a person that can vouch for the borrower and take responsibility for the loan in case they default on payments. They come with a high-interest rate, but they can help rebuild your credit score and improve your chances of getting a better loan in the future. 

Frequently Asked Questions And Their Answers

Can I get a guarantor loan if I have bad credit?

People with bad credit have a better chance of qualifying for quick loans with a guarantor than for standard personal loans because the guarantor acts as a safety net since they take full responsibility for the debt if the borrower can’t repay it.

Can a guarantor loan be declined?

Lenders usually reject applicants if they can’t meet their eligibility requirements. The most common reasons are a bad credit score, low income, or anything else that suggests the borrower may not be able to pay the loan back.

Do guarantors get credit checked?

Lenders run checks on the borrower and the guarantor to ensure they both can afford the loan.

Are guarantor loans guaranteed?

Guarantor loans have a high acceptance rate, but there’s no guarantee that your application will get accepted.

My name is Marija, and I'm a financial writer at DontDisappointMe. Although finance might not be everyone's cup of tea, my 10+ years of working in one of the biggest banks in my country, and my interest in extensive research on everything finance/investment-related, have made me somewhat of an expert in the field (if I do say so myself). No longer having the passion to work in a corporate setting, I decided that I couldn't let all of this knowledge go to waste so I started writing. And, here I am! Today I try to share my knowledge with my audience in the hopes of making this topic as simple and interesting as possible. In my leisure time, I like spending time with my family and travelling to new locations.