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Guarantor Loans

What is a guarantor loan?

Loans with a guarantor work on relationships and trust, and were the traditional way that many banks loaned money before the arrival of computer-generated credit scores. Unlike most modern lenders, we believe that if a friend or family member trusts you to make loan repayments, then we can too. This trust is paramount because your guarantor must make the loan repayments if you do not.

Why are guarantor loans becoming popular again?

Guarantor loans allow trustworthy, responsible people to take out a loan – even those who have been rejected by other lenders because of a low credit rating. If you don’t have a credit history, or you have had bad credit in the past, a guarantor loan can allow you to borrow money, regardless of your credit score, as long as you are not currently bankrupt or on an IVA. Even if you’ve had those problems in the past, we will not judge you on your credit score, instead we base our lending decision on simple common sense.

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Why would you choose a guarantor loan over other loans?

Guarantor loans provide a flexible option for you to borrow, especially if your options have been restricted by what other lenders consider a bad credit score. At Amigo Loans, part of our service is reporting back to all three credit reference agencies each month, giving you the chance to show your ability to make loan repayments regularly and on time, which could steadily improve your credit rating over the term of your loan, providing you keep up with your other bills as well.

Our guarantor loans are often suggested by price comparison websites as one of the cheapest ways to borrow small to medium amounts of money if you have a low credit score, as our loans typically have around 1/25th of the APR of a payday loan.

We have lent to over 300,000 people who haven’t been able to get loans previously, allowing them to borrow quickly, easily and flexibly – just take a look at our loan calculator below.

How much can you borrow with a guarantor loan and over what period?

Amigo provides loans between £500 and £10,000, and can be paid off across a period of up to 60 months, allowing plenty of time to spread the monthly payments, ensuring you can make the repayments comfortably. This kind of flexibility means that you can take out a guarantor loan with an affordable monthly payment that works for you.

See exactly how much your monthly payments could be by using our loan calculator.

What can you use the loan for?

A guarantor loan can be used for just about anything you need. Whether you’re having improvement work done to your home, fixing your car, or you’ve simply come across an unexpected expense. We’re there to help you, whatever your personal circumstances are.

What is the process for applying for a guarantor loan?

How long does the application process take?

We know that your time is precious, and that’s why our application process takes only five minutes to complete.

When will I receive the money?

Our aim is to create the smoothest and quickest process possible to receive your loan. Once you and your guarantor have applied for your guarantor loan online, we will speak with you both to ensure you each understand your responsibilities and will be able to afford the repayments. After your loan is successfully processed, your money will be deposited into your guarantor’s bank account within 24 hours and they will then transfer the money to you.

Will I be credit checked on application?

Although we don’t base our lending decision on your credit score, we run a quick credit check to ensure you aren’t currently bankrupt or on an IVA (Individual Voluntary Agreement), DRO or similar. This will not impact your credit score.

Will my guarantor be credit checked?

We will run a soft credit check on your guarantor once they have signed their Credit Agreement, to check that they haven’t had any problems paying bills in the past. This won’t leave a mark on their credit report that any other lenders will be able to see and will not impact their credit score.

Sometimes a guarantor is not accepted for a variety of reasons, but you can apply with as many guarantors as you need to. We recommend having a back-up guarantor in mind, should the first guarantor not be suitable.

Are there any charges or fees?

There are no hidden costs, such as ’set up’ or early repayment fees. You will only be charged your agreed interest rate on your loan, which is calculated daily.

Who can be my guarantor for a guarantor loan?

When choosing a loan guarantor, it’s important that they are aged 18-75, haven’t had any problems paying bills or credit in the past, and can afford to make the monthly payments if you don’t. It will also increase the likelihood of us accepting your guarantor if they own their own home, although this isn’t essential. Non-homeowner guarantor loans are also available for those who rent rather than own a property, but the guarantor will need to have a strong credit history.

Our team is on-hand to guide you through the guarantor loans process. If you have any queries you can find more information in our questions section.