Guarantor Loans
Good and bad credit histories considered
Representative 49.9% APR
Representative example: Borrowing £5,000 over 36 months, with 36 monthly payments of £243.98. Interest rate: 17% per annum fixed. Service fee: 24.17% per annum fixed. Interest payable: £1,562.19. Service fee payable: £2,221.09. Total amount repayable: £8,783.28. Representative 49.9% APR fixed.
Money Trumpet does not charge a fee for using its service. The service fee above is included in the loan’s representative example.
What is a guarantor loan?
A guarantor loan is borrowing backed by another person’s promise to repay if you do not. You remain responsible for your payments; the guarantor is legally responsible under the guarantee if those payments are not made.
It is not simply a character reference. Before agreeing, both people should understand how the commitment works and what it could cost. MoneyHelper explains the guarantee and its risks.
How much can you borrow with a guarantor loan?
Our partners offer guarantor loans from £1,000 to £10,000, with repayment terms of 1–7 years. Choose an amount and term that meet your needs and that you can realistically repay.
A longer term can reduce the monthly payment but increase the total interest paid. Your proposed guarantor should understand the full obligation before agreeing.
How do guarantor loans work?
You borrow and make the scheduled repayments. Your guarantor provides a separate promise to pay if you do not, according to the agreement.
You request the loan
Choose an amount and term you can afford, rather than relying on your guarantor to fund everyday repayments.
Both people are checked
The lender considers the application and the proposed guarantor’s ability to meet the guarantee.
You review the agreement
Both people read their documents and decide independently whether to proceed. Having a guarantor does not guarantee approval.
Can you get a guarantor loan with bad credit?
Our lending partner accepts applications from people with good and bad credit histories. This means you can be considered with bad credit; it does not mean every application will be approved. A suitable guarantor does not replace the lender’s checks on your ability to repay.
The decision depends on the provider, your circumstances and the proposed guarantor. Do not assume a particular credit score guarantees an offer. Explore bad credit loans if you want to understand borrowing without asking someone else to guarantee it.
Experian’s guarantor-loan guide explains why both the credit history and the commitment matter.
Who can act as a guarantor?
A close friend or family member with financial stability and a good credit history is a common choice. The lender decides who qualifies, including age, residency, income and any homeowner requirements.
Your chosen guarantor must be willing and able to cover the obligation. A strong personal relationship alone is not enough. Some providers require separate bank accounts; confirm the criteria with the provider before proceeding.
Before agreeing to be a guarantor
Read the guarantee independently. Ask how much you could owe, when payment could be requested and whether you could meet it alongside your own essential bills. Do not sign under pressure. StepChange has a checklist for prospective guarantors.
How do you compare guarantor loans and their costs?
Compare the APR, total amount repayable, monthly repayments, term and any fees. Look at the whole cost of borrowing, not just whether the monthly payment looks manageable.
| Check | Question to ask |
|---|---|
| Monthly payment | Can you keep up with it alongside existing commitments? |
| APR and total cost | What will the loan cost over the full term, including relevant charges? |
| Guarantee | When can the guarantor be asked to pay, and how much? |
| Early repayment | What would it cost to settle early or make overpayments? |
| Alternative options | Could suitable borrowing without a guarantor, saving or non-credit support meet the need? |
Money Trumpet is a credit broker, not a lender. We do not charge customers to use our service. We may receive commission from a lender or another broker if a loan completes. Any provider charges must be explained separately.
What happens if you cannot pay back the loan?
Contact the lender as soon as you think you will miss a payment. The guarantee can make the guarantor responsible for unpaid amounts, and arrears or default can affect credit records.
Borrowing again is not an automatic solution. Both people can seek free debt advice, including help with the guarantee and payment difficulties. StepChange explains support for guarantor-loan debt. Our guide to dealing with creditors can help you prepare.
Are there alternatives to loans with a guarantor?
Consider suitable personal loans without a guarantee, credit-union borrowing, saving towards the cost or non-credit support. If existing debts are unaffordable, seek debt advice before applying for further credit.
Our personal loans and unsecured loans pages explain different options. Neither means guaranteed acceptance or no lender checks. Use our budgeting guide to consider what you can realistically repay.
How do you apply for a guarantor loan with Money Trumpet?
Complete our dedicated guarantor-loan form. Money Trumpet will pass the completed application to the lender or broker handling the next stage. We do not assess the application or make the lending decision.
The provider will contact you for its final checks and any further information. Your guarantor must receive their own explanation and complete the provider’s separate secure process; your initial form is not a signed guarantee. Read our Privacy Policy before submitting information.
Guarantor loans FAQs
Are guarantor loans still available in the UK?
Availability depends on the provider and can change. Our partner offers loans from £1,000 to £10,000 over 1–7 years and considers good and bad credit histories.
Can you be refused a guarantor loan?
Yes. A lender can decline the borrower, the proposed guarantor or both. A guarantee is not guaranteed approval; both people need to meet the provider’s requirements.
Will Money Trumpet’s application affect your credit score?
Money Trumpet does not carry out a credit search. A subsequent lender or broker check is separate; ask whether it is soft or hard before proceeding. A hard search can affect your credit score.
Will being a guarantor affect your credit rating?
It can, depending on the checks, reporting and whether payments are maintained. Ask the lender how the guarantee could affect your credit report and future borrowing. Experian explains possible credit consequences.
Does a guarantor have to own a home?
Not for every product. Some providers accept non-homeowners and others require property ownership. Check the specific criteria rather than assuming a tenant qualifies.
Can you stop being a guarantor after the loan starts?
Do not assume you can withdraw after the loan is paid out. Ending or replacing the guarantee needs the lender’s agreement under the contract. Ask about this before signing.
Is a guarantor loan the same as a joint loan?
No. With a guarantor loan, one person borrows and another provides a guarantee. A joint loan has joint borrowers who share responsibility under their credit agreement.
Can a guarantor loan improve your credit score?
Keeping up payments on reported credit can support a credit history, but no loan guarantees a score increase. Borrow only for a genuine need and a manageable cost, not solely to change your score.
Where can a borrower or guarantor complain?
Complain to the loan provider first. If its response does not resolve the issue, the Financial Ombudsman Service may be able to help. It generally considers complaints after a final response or eight weeks. See its guarantor-loan complaints guidance.
Sources and review
Researched and written from scratch for Money Trumpet on 16 September 2026. General information, not a personal recommendation.
Guidance draws on MoneyHelper, Experian, StepChange and the Financial Ombudsman Service, linked beside the relevant explanations above.
Start with a simple online form
Use Money Trumpet’s dedicated guarantor-loan form.
A guarantor must understand and be able to meet the guarantee.