Being a guarantor for car finance with bad credit can be tough, as lenders might prefer a guarantor with a good credit score. Some lenders might consider guarantors with bad credit, but they could charge higher interest rates compared to applicants with a guarantor who has good credit.

We are a bad credit specialist who can help even if you’ve been refused elsewhere. We don’t offer guarantor finance, but we can help if you have poor credit. For more information, see our guide which explains how finance from Moneybarn works.

No, a guarantor doesn’t always need to be a homeowner. Some lenders prefer guarantors who have a mortgage, but that depends on the lender and the terms of the car finance agreement.

For guarantor car finance, the focus is usually on the guarantor’s creditworthiness and ability to make the payments if the borrower is unable to.

We can’t speak for other lenders, so make sure you understand all the agreement terms before you apply.

Yes, guarantors for car finance go through several checks as part of the application process. A lender will use a credit check on both the borrower and the guarantor to understand their financial histories.

They may also check the guarantor’s credit history, including their payment history, outstanding debt, and credit utilisation. This helps the lender understand if that person is eligible to be a guarantor and assess their ability to make payments if needed.

Some lenders use a soft credit check at the point of application, while others use a hard credit check. A soft check does not affect your credit score, while a hard check does. For more information about the difference, check out our guide to soft and hard credit checks.

You might have heard about companies saying they offer car finance with no credit check, but that’s not true. Every responsible lender will do credit and affordability checks to ensure car finance is suitable for you, whether you apply alone or with a guarantor.

In most cases, having an Individual Voluntary Arrangement (IVA) will affect your ability to be a guarantor. An IVA is a legally binding agreement to repay debts over a specific period, so if you’ve been in one, it shows that you’ve had financial difficulties in the past.

Lenders usually prefer guarantors with good credit histories. Having an IVA might be seen as being a higher risk, so you may find it difficult to be a guarantor for car finance if you’ve had an IVA.

No, generally, you can’t remove a guarantor from a car finance agreement. Usually, you have to settle the agreement completely before your role as a guarantor is finished.

This might mean settling your car finance agreement early. To do this, you can ask your lender for an Early Settlement Figure (ESF), which you can pay to end your finance agreement.

If you’re unsure about your options in a guarantor car finance agreement, it’s best to talk to your lender for guidance.

This varies based on your car finance type. During most agreements like PCP, CS, and HP, you will be the registered keeper of the car. That means you can fully use and access the car, but you’re not its legal owner. The finance company remains the legal owner until your agreement ends.

With PCP and HP, you must make an extra payment to own the car. In PCP, this is known as the ‘balloon payment’, and in HP, the ‘option to purchase’ fee.

With CS, the type of finance we offer, you’ll legally own the car once you’ve made your final repayment. We don’t offer car finance with a guarantor, but we can help applicants if they have bad credit. For more information, find out how CS car finance works.