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Guaranteed Loans

If approved, your £100 to £5,000 can be sent within minutes, in a few clicks

With over 50 direct lenders in our network to compare, we find you the best loan offer available!

  • 100% secure
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I would like to borrow...

...and pay it back in 12 months

Representative Example: Amount of credit: £1,000 for 12 months at £107.53 per month. Total amount repayable of £1,290.36. Interest: £290.36. Interest rate: 49.9% p.a. Fixed*. 49.9% APR Representative. Rates between 9.9% APR and 1,295% APR.

We're a fully regulated and authorised credit broker and not a lender.

We work with over 50 lenders to help you find the best loan possible.
We never charge you for our service.

Guaranteed loans, also called guarantor loans are loans in which a third party, promises to pay back a portion, or the remainder of the loan if the borrower defaults or stops making payments. Because of this guarantee, the lender is relieved from an excessive amount of risk in issuing these types of loans.

These loans are often available to those who have bad credit or no credit. The borrower would be denied otherwise but is secured through the guarantor. The guarantor for these loans can be a government agency, a family member, or any citizen who is over 18 with great credit and sufficient means to pay the loan if the borrower fails to pay.

How Can You Guarantee a Loan?

There are several different types of loans and payment arrangements that lenders will allow a guarantor on. These include personal loans, mortgages, auto loans, and even rental agreements.

All you really need is to find someone you trust who has great credit and a decent income. This can be a family member, such as your parents, or a close friend.

Once you have found someone who agrees to be a guarantor, they will need to give the lender their basic personal and income information, as well as have a credit check done. Once your guarantor is found to be worthy of paying back the debt, you lender will approve the loan.

Are There Guaranteed Loans for Bad Credit?

Having bad credit is not an automatic disqualification from being approved for a guaranteed loan. In fact, guaranteed loans are usually a good option. When the borrower would not normally qualify for the loan due to increased credit risk or lack of sufficient income or collateral.

A guarantor acts as a reliable last line of defence to the lender. Because of this, guaranteed loans often allow people who would not normally qualify for a loan to get approved.

Can You Get a Guaranteed Loan Without a Credit Check?

All loans, with the exception of some payday loans, require a credit check prior to approval. This is the same with guaranteed loans. Guaranteed loans are designed primarily for those who may not have the best credit or security. They do still require a credit check for not only the borrower but for the guarantor too.

The approval of the guaranteed loan relies heavily on the guarantor's creditworthiness and ability to pay, so they should have good credit.

Looking for a guaranteed loan?

We have guarantor lenders on our panel who we could connect you to. You could also get connected to bad credit lenders without guarantors.

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What Happens If You Can't Repay a Guaranteed Loan?

Sometimes hardships happen, and if they affect your ability to pay your debts you can fall behind. Fortunately, your guarantor can resume making payments on your behalf. Usually, the lender will continue to reach out to you to try to get a payment, then they will reach out to your guarantor when it's in both of your best interests.

If you file for bankruptcy, your guarantor will take sole responsibility in paying back the debt. This is why it is in your best interest to have a trusted friend or family member as a guarantor.

What Are Government-Guaranteed Loans?

A government-guaranteed loan is simply a loan in which the UK government acts as the guarantor. The Enterprise Finance Guarantee is a government-guaranteed lending scheme in the UK.

These loans are available to small businesses seeking financing, who are unable to provide the security that the bank would otherwise require. In these cases, the UK government will act as the guarantor for 75% of the loan, up to 1 million quid.

What Is a Loan Guarantee Fee?

When you get approved for a guaranteed loan that is backed by the government, you will probably have to pay what is called a loan guarantee fee.

This fee is 2% of the guaranteed amount per year. It is usually billed quarterly and directly debited from the business’ checking account. This fee is used as a contribution towards the cost of the scheme.

Are There Guaranteed Payday Loans?

Guaranteed payday loans do not work in the same way other guaranteed loans do. Guaranteed payday loans do not have a third-party guarantor, but instead are secured through the borrower's paycheck. The borrower will give the lender a post-dated check or electronic access to their account to withdraw funds from, on a future date.

Payday loans generally have high-interest rates and short payment terms. This makes getting a guaranteed personal loan a more attractive choice in most cases.

There are some lenders that advertise guaranteed approval on payday loans, but this is impossible as it is against UK regulations to advertise them as such.

Every lender has to determine your ability to pay back a loan with a credit check or an income check. If you have bad credit and insufficient income to cover the payments on the loan, they will have no option but to decline you.

Are Guaranteed Loans Right for You?

Shopping for loans when you don’t have the best credit can be a struggle, but it doesn’t have to be. For those that are having trouble getting approved for a non-guarantor loan due to bad credit or lack of credit history, getting a guaranteed loan is a great option, especially if you want to avoid getting high-interest payday loans.

A guarantor on a bad credit loan can help you get approved for a loan you would otherwise be denied. They also provide security to the loan in the event that you fall behind.

It is important to keep in mind that having a guarantor does not automatically mean that you will be approved. Along with that, many lenders will pay out the loan to your guarantor. They will then need to transfer it to you, so only choose a guarantor who you have a lot of trust in.

Looking for a guaranteed loan?

We have guarantor lenders on our panel who we could connect you to. You could also get connected to bad credit lenders without guarantors.

Apply Now