Guarantor car finance

A guarantor loan or car finance can help you if you have a bad credit score, but it’s not your only option. Our guide explores guarantor car finance, how it works, and how we could help you get car finance if you have bad credit.

Guarantor car finance

A guarantor loan or car finance can help you if you have a bad credit score, but it’s not your only option. Our guide explores guarantor car finance, how it works, and how we could help you get car finance if you have bad credit.

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, your guarantor will be responsible for repaying the loan.

Applying for car finance with a guarantor isn’t as common nowadays because there are more specialist lenders offering bad credit 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, your guarantor will be responsible for repaying the loan.

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

We could help you get car finance, but not with a guarantor

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. We have over 30 years of experience helping people up and down the UK onto a better road ahead.

We could help you get car finance, but not with a guarantor

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. We have over 30 years of experience helping people up and down the UK onto a better road ahead.

How does car finance with a guarantor work?

Car finance with a guarantor is usually limited to people with a poor credit score or no credit history. It can help those who find it difficult to get approved for a car loan on their own.

When you apply with a guarantor, the lender considers 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 then make monthly repayments to the finance company until the finance is fully paid.

If you aren’t able to make the repayments, the guarantor is then responsible for paying off the car finance agreement.

Who can be a guarantor?

A guarantor is usually a family member or close friend with a good credit history, credit score, and stable income.

The criteria for getting car finance with a guarantor vary from lender to lender. Some of the typical criteria for being a guarantor include:

  • Having a good credit score and credit history
  • Being at least 18 years old and a UK resident
  • Someone close to you, like a family member or partner

What does a guarantor need to provide for car finance?

If you’ve agreed to be a guarantor on someone else’s car finance application, you may need to provide the following information:

  • Proof of identity, e.g. a driving licence or passport
  • Proof of income, e.g. bank statements, payslips, or a tax return
  • Personal details, e.g. name, contact information, address, and employment history

Every car finance application is subject to credit and affordability checks. The exact process will vary depending on the lender and type of finance you apply for. You and your guarantor may need to provide additional documents, which the lender will explain.

What credit score does a guarantor need?

There is no specific credit score needed to get car finance, nor to be a guarantor. This is because there are 3 main credit reference agencies (CRAs) in the UK, and each calculates credit scores slightly differently.

A credit score is just one of many factors that a car finance provider looks at when assessing your application. Lenders also consider your credit history and will make affordability checks to ensure finance is suitable for you.

A good credit score indicates that you are able to manage credit and may increase your chances of getting approved for finance. Our guides explains some things that may help to improve your credit score.

What are the risks of being a guarantor?

How does car finance with a guarantor work?

Car finance with a guarantor is usually limited to people with a poor credit score or no credit history. It can help those who find it difficult to get approved for a car loan on their own.

When you apply with a guarantor, the lender considers 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 then make monthly repayments to the finance company until the finance is fully paid.

If you aren’t able to make the repayments, the guarantor is then responsible for paying off the car finance agreement.

Who can be a guarantor?

A guarantor is usually a family member or close friend with a good credit history, credit score, and stable income.

The criteria for getting car finance with a guarantor vary from lender to lender. Some of the typical criteria for being a guarantor include:

  • Having a good credit score and credit history
  • Being at least 18 years old and a UK resident
  • Someone close to you, like a family member or partner

What does a guarantor need to provide for car finance?

If you’ve agreed to be a guarantor on someone else’s car finance application, you may need to provide the following information:

  • Proof of identity, e.g. a driving licence or passport
  • Proof of income, e.g. bank statements, payslips, or a tax return
  • Personal details, e.g. name, contact information, address, and employment history

Every car finance application is subject to credit and affordability checks. The exact process will vary depending on the lender and type of finance you apply for. You and your guarantor may need to provide additional documents, which the lender will explain.

What credit score does a guarantor need?

There is no specific credit score needed to get car finance, nor to be a guarantor. This is because there are 3 main credit reference agencies (CRAs) in the UK, and each calculates credit scores slightly differently.

A credit score is just one of many factors that a car finance provider looks at when assessing your application. Lenders also consider your credit history and will make affordability checks to ensure finance is suitable for you.

A good credit score indicates that you are able to manage credit and may increase your chances of getting approved for finance. Our guides explains some things that may help to improve your credit score.

What are the risks of being a guarantor?

When applying for car finance, some lenders may use a hard credit check. This check applies to both the applicant and the guarantor, leaving a mark on both of your credit files. Learn more about soft and hard credit checks in our guide.

When you become a guarantor, a financial link is created between you and the other person. This is usually visible on your credit file and may affect your ability to get credit if the other person has a poor credit score or no credit history.

If the borrower can’t make the monthly repayments, the guarantor is legally responsible for making them. If the guarantor also defaults on the repayments, it can affect their and the borrower’s credit scores.

When applying for car finance, some lenders may use a hard credit check. This check applies to both the applicant and the guarantor, leaving a mark on both of your credit files. Learn more about soft and hard credit checks in our guide.

When you become a guarantor, a financial link is created between you and the other person. This is usually visible on your credit file and may affect your ability to get credit if the other person has a poor credit score or no credit history.

If the borrower can’t make the monthly repayments, the guarantor is legally responsible for making them. If the guarantor also defaults on the repayments, it can affect their 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 positively or negatively. Once a hard check is done, you might notice your credit score drop by a few points.

If the borrower can’t make repayments, the debt may be recorded on the guarantor’s credit file as they are now responsible for paying the finance agreement. Should the guarantor also default, this can further affect their ability to get credit in the future.

According to Equifax, a guarantor agreement only shows on the guarantor’s credit file if the borrower misses a repayment or defaults on the agreement. However, some guarantor car loans may be different, so it’s worth checking with the lender before signing an agreement.

If the borrower consistently makes their repayments on time and in full, then you may find that car finance builds your credit score. You will also need to be paying all of your other debts on time and in full.

What are the advantages and disadvantages of guarantor car finance?

Does being a guarantor affect your credit score?

Yes, being a guarantor for someone’s car finance may affect your credit score positively or negatively. Once a hard check is done, you might notice your credit score drop by a few points.

If the borrower can’t make repayments, the debt may be recorded on the guarantor’s credit file as they are now responsible for paying the finance agreement. Should the guarantor also default, this can further affect their ability to get credit in the future.

According to Equifax, a guarantor agreement only shows on the guarantor’s credit file if the borrower misses a repayment or defaults on the agreement. However, some guarantor car loans may be different, so it’s worth checking with the lender before signing an agreement.

If the borrower consistently makes their repayments on time and in full, then you may find that car finance builds your credit score. You will also need to be paying all of your other debts on time and in full.

What are the advantages and disadvantages of guarantor car finance?

Having a guarantor could increase your chances of acceptance, particularly if you have bad credit. If you can’t make repayments, the guarantor will take responsibility for paying off the agreement.

The main disadvantage of guarantor car finance is that it ties the guarantor financially to the applicant. This link can impact their credit score, especially if the borrower can’t keep up with payments, leading the guarantor to make payments on their behalf.

Having a guarantor could increase your chances of acceptance, particularly if you have bad credit. If you can’t make repayments, the guarantor will take responsibility for paying off the agreement.

The main disadvantage of guarantor car finance is that it ties the guarantor financially to the applicant. This link can impact their credit score, especially if the borrower can’t keep up with payments, leading the guarantor to make payments on their behalf.

Can I get guarantor car finance?

Guarantor car finance is less common, as there are specialist lenders such as Moneybarn who can help people with bad credit apply for car finance with no guarantor.

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.

It’s important to know that you cannot apply for car finance for someone else, even if it’s a close friend or family member. Doing this is known as ‘fronting’, which is illegal.

We are one of the UK’s leading lenders of bad credit car finance. We could help you to finance a car without a guarantor, even if other lenders have rejected you.

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

No, you don’t have to use a guarantor to get car finance, even if you have a poor credit score or no credit history.

What are the alternatives to using guarantor car finance?

If you have a bad credit history, guarantor car loans are not your only options. Our Conditional Sale (CS) agreement helps thousands of people each month onto a better road ahead, without needing a guarantor.

Can I get guarantor car finance?

Guarantor car finance is less common, as there are specialist lenders such as Moneybarn who can help people with bad credit apply for car finance with no guarantor.

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.

It’s important to know that you cannot apply for car finance for someone else, even if it’s a close friend or family member. Doing this is known as ‘fronting’, which is illegal.

We are one of the UK’s leading lenders of bad credit car finance. We could help you to finance a car without a guarantor, even if other lenders have rejected you.

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

No, you don’t have to use a guarantor to get car finance, even if you have a poor credit score or no credit history.

What are the alternatives to using guarantor car finance?

If you have a bad credit history, guarantor car loans are not your only options. Our Conditional Sale (CS) agreement helps thousands of people each month onto a better road ahead, without needing a guarantor.

Bad credit car finance

Bad credit car finance helps people with less-than-perfect credit scores. You might have a poor credit score if you’ve missed repayments in the past or had a CCJ or IVA.

You might have a low credit score because you’ve never borrowed money or taken out finance. Since there’s not much evidence showing how well you handle credit, lenders may see it as higher risk to lend to you.

Joint car finance

A joint car finance deal lets you apply with someone who has a better credit rating than you, which can improve your chances of being accepted.

If you’re ready to get car finance without a guarantor, use our car finance calculator to see what your agreement could look like. Also, learn more about our application process to see how we could help you get your dream car.

Bad credit car finance

Bad credit car finance helps people with less-than-perfect credit scores. You might have a poor credit score if you’ve missed repayments in the past or had a CCJ or IVA.

You might have a low credit score because you’ve never borrowed money or taken out finance. Since there’s not much evidence showing how well you handle credit, lenders may see it as higher risk to lend to you.

Joint car finance

A joint car finance deal lets you apply with someone who has a better credit rating than you, which can improve your chances of being accepted.

If you’re ready to get car finance without a guarantor, use our car finance calculator to see what your agreement could look like. Also, learn more about our application process to see how we could help you get your dream car.

FAQs about guarantor car finance

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 Agreement (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.

FAQs about guarantor car finance

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 Agreement (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.

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.

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.

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.