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. Ultimately, this trust-based lending is what guarantor loans are all about.
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.
A guarantor is someone who guarantees your loan – essentially, a guarantor is a person who knows and trusts you to make your loan payments and agrees to make repayments for the loan if you don’t. Guarantors are usually friends or family members as these are the people who know you best.
Finding the ideal person to be a guarantor for a loan can sometimes be challenging – you need to make sure it’s someone who meets the following criteria:
Non-homeowner guarantor loans are also available for those whose guarantors rent rather than own their property, but the guarantor will need to have a strong credit history.
It’s completely up to you – a guarantor for a loan should be someone who knows you really well and is someone you’re happy to talk about your finances with. Being a guarantor for a loan is a big commitment and it’s important for you both to understand and be comfortable with what’s expected of you when you agree to take out the loan. Family and friends are the best choices, but colleagues could also be a good guarantor for you; it’s about finding someone who is happy to help you out financially.
A guarantor will step in and agrees to make repayments for the loan if you don’t. They are someone who guarantee loan payments will be made - whether the borrower makes their repayments or, if the borrower doesn’t pay, the loan guarantor does.
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 guarantor loans 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.
Amigo provides guarantor 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.
You're borrowing £4,000
Over a term of 36 months
Repayment £195.16 per month
Total repayable £7025.76
Interest rate 49.9% (variable)
Representative 49.9% APR (variable)
When you apply for a guarantor loan with Amigo, we endeavour to pay out your loan on the same day if it’s a working day; it might take a little longer over the weekend. If you and your guarantor complete the application online, all checks are completed without issue and you can both afford the repayments, we could pay out the loan in 24 hours.
We make sure the process for applying for a guarantor loan is quick and easy so you can get the money you need fast.
We’re a direct lender for guarantor loans, so there’s no need to go through a broker to get the money you need. We are here to help you every step of the way during the application process, so if you have any questions we’re only a phone call, text message or email away. We pride ourselves on our outstanding customer experience and satisfaction; this is shown by the huge amount of positive feedback we receive from review sites like Trustpilot.
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 here to help you, whatever your personal circumstances are.
We know that your time is precious, and that’s why our guarantor loan application process takes only five minutes to complete.
Our aim is to create the smoothest and quickest process possible to receive your guarantor 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.
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 (Debt Relief Order) or similar. This will not impact your credit score.
We will run a soft credit check on your loan 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 for your loan.
There are no hidden costs, such as ’set up’ or early repayment fees. You will only be charged your agreed interest rate on your guarantor loan, which is calculated daily.
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.