Our flexible guarantor loans are ideal for customers with bad credit history (including defaults and CCJs). The great idea behind this type of car finance is that money is paid to your bank account and with the cash in your pocket, you may find a better deal with a dealer or private seller. We charge no fees and no upfront deposit required. With our guarantor finance, you can pay off the loan early without incurring any extra charges.
Guarantor car finance is a loan where your family member or a friend agrees to guarantee the repayments of the car loan in case you fail to do so. Car finance with a guarantor is ideal for young drivers or for customers who have poor credit rating and are struggling to get accepted for vehicle credit.
What is a guarantor?
A guarantor is someone who agrees to back up your finance, aged between 18 and 75, with a good credit history, without any issues paying the bills in the past, and can afford to make the monthly payments if you don’t.
We will only approve someone as a guarantor if they have enough funds to cover the monthly payments of your car loan, should they be required to.
A guarantor does not have to be a homeowner, but it may increase the possibility of the lender accepting them as your guarantor if they are. We consider tenants who have been at same address for many years and who have a good credit history.
Will the guarantor lose their home if I fail with payments?
No! With guarantor loan, the car finance is not secured to their home. But they still would be liable for the debt and will need to repay the loan facility balance in case you default the repayments. This is why its called guarantor car finance.
It doesn’t matter if you have bad credit, are self employed, or even if you’re currently unemployed – the most important is that your friend or family member who trusts you will guarantee to make repayments if you don’t, and that you can afford to repay the loan.
Guarantor finance representative example: Borrowing £7500 over 60 months, repaying £296.44per month, total repayable £17,786.40.
How do I find a guarantor?
Car finance with a guarantor is based on an idea of trust. Lenders don’t judge customers on their credit. If you can find someone, who can afford the monthly payments and can be your guarantor, apply for an instant decision.
How long does it take to get my loan?
We always do everything we can to make sure your car finance facility is paid out as quickly as possible. If you and your guarantor complete the applications online, we could pay out the car finance loan out in 24 hours.
Your guarantor loan can even be used for debt consolidation to pay off existing loan, effectively merging any outstanding payments into one single, manageable loan.