FAQs - My credit score

What is a guarantor loan?

Moneybarn,
Wednesday, 05 August 2020

A guarantor loan can often be an option for people who have a bad credit score. Asking a family member or friend to be a guarantor on your loan means that if at any point you are no longer able to pay the monthly repayments, they will honour your debt and repayment.

Having a guarantor on your loan or finance agreement will assure the lender that they will get their money back. As the guarantor will be able to pay the loan back if you are unable to do so.

Lenders will often need your guarantor to be a homeowner or be able to show that they have enough money or assets to cover the amount of your loan.