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Guarantor car finance

We don’t offer guarantor car finance at Moneybarn, but that doesn’t mean we can’t help you if you have bad credit and need car finance.

Guarantor car finance

We don’t offer guarantor car finance at Moneybarn, but that doesn’t mean we can’t help you if you have bad credit and need car finance.

What is guarantor car finance?

Guarantor car finance is when you add another person to your car finance agreement. If you don’t pay your car finance, then your guarantor will be responsible for paying the debt.

Applying for car finance with a guarantor isn’t as common nowadays, because there are more and more specialist lenders who offer bad credit car finance.

We don’t offer the option of having a guarantor on your car finance agreement, but if you have bad credit, we might be able to help.

How does car finance with a guarantor work?

Car finance with a guarantor is less common nowadays and is usually limited to people with a poor credit history who find it difficult to get approved for a car loan on their own.

When you apply with a guarantor, the lender assesses both the applicant and the guarantor. If you’re approved, the lender will pay the dealership for you, and you will have full use of the car. You’ll have to make monthly repayments until the cost of the finance is fully paid.

If the borrower fails to make the repayments, then the responsibility to pay off the car finance agreement falls on the guarantor.

Who can be a guarantor?

A guarantor is usually a family member or close friend who has a good credit history. It might be a parent, a trusted friend, or someone else who is close to you who has a stable income and good credit score.

Some of the common criteria for being a guarantor may include:

  • Having a good credit score and credit history which proves they can manage credit responsibly
  • The guarantor typically has to be at least 18 years old and a resident of the UK
  • It generally has to be someone close to you, like a family member

What does a guarantor need to provide for car finance?

When acting as a guarantor for car finance, certain information may be required to support your application. We don’t offer guarantor car finance, but some common things you need when applying for car finance include:

  • Proof of identity, typically a driving licence
  • Proof of income which might be bank statements, payslips, or a tax return
  • Personal details such as name, contact information, address and employment history

What credit score does a guarantor need?

There is no specific credit score needed to get car finance. This is because there are 3 different credit reference agencies (CRAs) in the UK, and each calculates their credit scores slightly differently.

Also, credit score is just one of many factors that a car finance provider looks at when assessing your application. They will also carry out affordability checks to make sure that any finance they offer is affordable for your circumstances.

Having a good credit score shows that you are good at managing credit, and may help increase your chances of getting approved. Improving your credit score can be beneficial for everyone, whether they plan to be a guarantor or not.

What are the risks of being a guarantor?

Before agreeing to be a guarantor, it’s important to understand the risks and responsibilities involved.

Being a guarantor for someone else’s car finance carries risks, these include:

  • If the borrower fails to make their repayments, the guarantor is legally responsible for making them
  • If the guarantor also defaults on the repayments, it can have a negative impact on theirs and the borrower’s credit scores

Does being a guarantor affect your credit score?

Yes, being a guarantor for someone’s car finance may affect your credit score. This is for several reasons:

  1. When you take out a car finance agreement, a hard search will be done, usually on both the borrower and the guarantor. This hard search may affect your credit score by a few points
  2. It creates a financial link between you and the person you are applying with. If the guarantor needs to get involved, the debt may be recorded on their credit file, which can affect their score
  3. If the borrower consistently makes their repayments on time and in full, it may have a positive impact on your credit scores

According to Equifax, a guarantor agreement only shows on the credit file of the guarantor if the borrower misses a payment or defaults on the agreement. This depends on the type of agreement and the lender, so if you’re unsure, speak to the lender and they can explain if this is the case.

Can I get guarantor car finance?

Guarantor car finance is less common nowadays, as there are more specialist lenders who can help those with bad credit apply for car finance with no guarantor.

It’s important to know that you cannot apply for car finance for someone else. If you have had financial problems in the past, it might make it harder to get approved, but that doesn’t mean it’s impossible to get car finance with less-than-perfect credit.

We do not offer guarantor car finance, but if you have bad credit, we might be able to help you.

We are one of the UK’s leading lenders of specialist vehicle finance for those who have been rejected by mainstream lenders.

Do I have to use a guarantor to get car finance?

No, you do not have to use a guarantor to get car finance. You could instead apply with a specialist lender like Moneybarn. We are proud to have over 30 years of experience helping people up and down the UK onto a better road ahead.

If you have a poor credit score, lenders might consider it a higher risk to lend to you. Having a guarantor can help, but there are other ways to get car finance, such as with a specialist lender, or by making a joint application.

A joint application is slightly different because both people will be responsible for repayments for the lifetime of the agreement. Affordability checks will be done using both incomes combined.

What is guarantor car finance?

Guarantor car finance is when you add another person to your car finance agreement. If you don’t pay your car finance, then your guarantor will be responsible for paying the debt.

Applying for car finance with a guarantor isn’t as common nowadays, because there are more and more specialist lenders who offer bad credit car finance.

We don’t offer the option of having a guarantor on your car finance agreement, but if you have bad credit, we might be able to help.

How does car finance with a guarantor work?

Car finance with a guarantor is less common nowadays and is usually limited to people with a poor credit history who find it difficult to get approved for a car loan on their own.

When you apply with a guarantor, the lender assesses both the applicant and the guarantor. If you’re approved, the lender will pay the dealership for you, and you will have full use of the car. You’ll have to make monthly repayments until the cost of the finance is fully paid.

If the borrower fails to make the repayments, then the responsibility to pay off the car finance agreement falls on the guarantor.

Who can be a guarantor?

A guarantor is usually a family member or close friend who has a good credit history. It might be a parent, a trusted friend, or someone else who is close to you who has a stable income and good credit score.

Some of the common criteria for being a guarantor may include:

  • Having a good credit score and credit history which proves they can manage credit responsibly
  • The guarantor typically has to be at least 18 years old and a resident of the UK
  • It generally has to be someone close to you, like a family member

What does a guarantor need to provide for car finance?

When acting as a guarantor for car finance, certain information may be required to support your application. We don’t offer guarantor car finance, but some common things you need when applying for car finance include:

  • Proof of identity, typically a driving licence
  • Proof of income which might be bank statements, payslips, or a tax return
  • Personal details such as name, contact information, address and employment history

What credit score does a guarantor need?

There is no specific credit score needed to get car finance. This is because there are 3 different credit reference agencies (CRAs) in the UK, and each calculates their credit scores slightly differently.

Also, credit score is just one of many factors that a car finance provider looks at when assessing your application. They will also carry out affordability checks to make sure that any finance they offer is affordable for your circumstances.

Having a good credit score shows that you are good at managing credit, and may help increase your chances of getting approved. Improving your credit score can be beneficial for everyone, whether they plan to be a guarantor or not.

What are the risks of being a guarantor?

Before agreeing to be a guarantor, it’s important to understand the risks and responsibilities involved.

Being a guarantor for someone else’s car finance carries risks, these include:

  • If the borrower fails to make their repayments, the guarantor is legally responsible for making them
  • If the guarantor also defaults on the repayments, it can have a negative impact on theirs and the borrower’s credit scores

Does being a guarantor affect your credit score?

Yes, being a guarantor for someone’s car finance may affect your credit score. This is for several reasons:

  1. When you take out a car finance agreement, a hard search will be done, usually on both the borrower and the guarantor. This hard search may affect your credit score by a few points
  2. It creates a financial link between you and the person you are applying with. If the guarantor needs to get involved, the debt may be recorded on their credit file, which can affect their score
  3. If the borrower consistently makes their repayments on time and in full, it may have a positive impact on your credit scores

According to Equifax, a guarantor agreement only shows on the credit file of the guarantor if the borrower misses a payment or defaults on the agreement. This depends on the type of agreement and the lender, so if you’re unsure, speak to the lender and they can explain if this is the case.

Can I get guarantor car finance?

Guarantor car finance is less common nowadays, as there are more specialist lenders who can help those with bad credit apply for car finance with no guarantor.

It’s important to know that you cannot apply for car finance for someone else. If you have had financial problems in the past, it might make it harder to get approved, but that doesn’t mean it’s impossible to get car finance with less-than-perfect credit.

We do not offer guarantor car finance, but if you have bad credit, we might be able to help you.

We are one of the UK’s leading lenders of specialist vehicle finance for those who have been rejected by mainstream lenders.

Do I have to use a guarantor to get car finance?

No, you do not have to use a guarantor to get car finance. You could instead apply with a specialist lender like Moneybarn. We are proud to have over 30 years of experience helping people up and down the UK onto a better road ahead.

If you have a poor credit score, lenders might consider it a higher risk to lend to you. Having a guarantor can help, but there are other ways to get car finance, such as with a specialist lender, or by making a joint application.

A joint application is slightly different because both people will be responsible for repayments for the lifetime of the agreement. Affordability checks will be done using both incomes combined.

Alternatives to guarantor car finance

Alternatives to guarantor car finance

Single application

It is possible to get car finance with poor credit. Just because you have bad credit, it doesn’t change the fact you need a reliable car to get around.

You might have bad credit if you’ve missed payments in the past. As long as you fit our lending criteria, we could help. Find out more below.

Car finance with bad credit

Joint application

We use a soft credit check when you apply with us. This will not impact either of your credit scores. If you’re accepted, our team would be happy to discuss your options.

Please note that your combined monthly income must be at least £1,300 a month after tax, and joint applications need to be made over the phone.

Joint car finance

Single application

It is possible to get car finance with poor credit. Just because you have bad credit, it doesn’t change the fact you need a reliable car to get around.

You might have bad credit if you’ve missed payments in the past. As long as you fit our lending criteria, we could help. Find out more below.

Car finance with bad credit

Joint application

We use a soft credit check when you apply with us. This will not impact either of your credit scores. If you’re accepted, our team would be happy to discuss your options.

Please note that your combined monthly income must be at least £1,300 a month after tax, and joint applications need to be made over the phone.

Joint car finance

FAQs about guarantor car finance

Being a guarantor for car finance with bad credit can be difficult, as lenders usually prefer a guarantor with a good credit history. However, some lenders may accept those with less-than-perfect credit as long as they meet certain criteria.

If you have bad credit, have you considered making an application with us? We are bad credit specialist lenders who can help even if you’ve been refused elsewhere. We don’t offer guarantor finance but can help if you have poor credit. For more information, see our guide that explains how it works.

No, it isn’t always a requirement for a guarantor to be a homeowner. Some lenders might 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 repayments if the borrower isn’t able to make them. However, we can’t speak for other lenders, so make sure you understand all the terms of the agreement before you make any application.

Yes, guarantors for car finance usually undergo a credit check as part of the application process. Lenders 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 information helps the lender understand if that person is eligible to be a guarantor, and assess their ability to make repayments if needed.

Some lenders use a soft credit check, 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.

In most cases, having an Individual Voluntary Agreement (IVA) may affect your ability to be a guarantor. An IVA is a legally binding agreement to repay debts over a specific time period.

Lenders typically prefer guarantors with good credit histories. Having an IVA might be seen as being higher risk, and so you may find it difficult to be a guarantor if you’ve had one in the past.

No, usually you can’t remove a guarantor from a car finance agreement. You typically need to settle the agreement in full before your responsibility as a guarantor is completed.

If you’re currently in a guarantor car finance agreement and are not sure, speak to your lender and they can discuss your options.

This depends on the type of car finance you have. With PCP, HP, and CS, you don’t legally own the car during the agreement. With PCP and HP you have to make an additional payment to own the car. In PCP this is referred to as the ‘balloon payment’, and in HP the ‘option to purchase’ fee.

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

FAQs about guarantor car finance

Being a guarantor for car finance with bad credit can be difficult, as lenders usually prefer a guarantor with a good credit history. However, some lenders may accept those with less-than-perfect credit as long as they meet certain criteria.

If you have bad credit, have you considered making an application with us? We are bad credit specialist lenders who can help even if you’ve been refused elsewhere. We don’t offer guarantor finance but can help if you have poor credit. For more information, see our guide that explains how it works.

No, it isn’t always a requirement for a guarantor to be a homeowner. Some lenders might 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 repayments if the borrower isn’t able to make them. However, we can’t speak for other lenders, so make sure you understand all the terms of the agreement before you make any application.

Yes, guarantors for car finance usually undergo a credit check as part of the application process. Lenders 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 information helps the lender understand if that person is eligible to be a guarantor, and assess their ability to make repayments if needed.

Some lenders use a soft credit check, 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.

In most cases, having an Individual Voluntary Agreement (IVA) may affect your ability to be a guarantor. An IVA is a legally binding agreement to repay debts over a specific time period.

Lenders typically prefer guarantors with good credit histories. Having an IVA might be seen as being higher risk, and so you may find it difficult to be a guarantor if you’ve had one in the past.

No, usually you can’t remove a guarantor from a car finance agreement. You typically need to settle the agreement in full before your responsibility as a guarantor is completed.

If you’re currently in a guarantor car finance agreement and are not sure, speak to your lender and they can discuss your options.

This depends on the type of car finance you have. With PCP, HP, and CS, you don’t legally own the car during the agreement. With PCP and HP you have to make an additional payment to own the car. In PCP this is referred to as the ‘balloon payment’, and in HP the ‘option to purchase’ fee.

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

Car finance calculator

Have you tried our car finance calculator? It should be simple to use and gives you an idea of what your car finance might look like. Try it out and see.

Car finance calculator

How does car finance work?

Buying a new car is exciting but also stressful. With so many different things to worry about, we’ve written a guide to explain how financing works.

Car finance explained

Have you been refused?

If you’re looking for car finance with a guarantor, you might have been refused elsewhere. There are lots of reasons why you might have been rejected.

Refused car finance

For a better road ahead

Moneybarn is a member of the Finance and Leasing Association, the official trade organisation of the motor finance industry. The FLA promotes best practice in the motor finance industry for lending and leasing to consumers and businesses.

Moneybarn is the trading style of Moneybarn No. 1 Limited, a company registered in England and Wales with company number 04496573, and Moneybarn Limited, a company registered in England and Wales with company number 02766324. The registered address for these companies is: Athena House, Bedford Road, Petersfield, Hampshire, GU32 3LJ.

Moneybarn’s VAT registration number is 180 5559 52.

Moneybarn Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702781)

Moneybarn No. 1 Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702780)

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© Copyright 2023 Moneybarn Limited
© Copyright 2023 Moneybarn Limited

Representative example: Total amount of credit £10,460. Repayable over 58 months, 57 monthly payments of £351.13. Representative 35.5% APR (fixed). Deposit of £910.55. Total charge for credit £9,554.41. Total amount payable £20,924.96. Subject to status and affordability. You could risk losing your vehicle if you do not keep up payments.