Do I need a Guarantor for my car finance application with Creditplus?

Approved by the Car Finance Advisory Board

Some car finance applicants can get better rates by having a Guarantor and Creditplus aims to offer a wide range of options to suit every customer's circumstances. That's why we have created the Credit+1 Guarantor Loan, a secured car loan where a friend, family member or co-worker agrees to repay the finance agreement if the borrower is unable to meet their monthly payments. 

We've answered some of the most frequently asked questions surrounding car finance with a Guarantor below. If you can’t find the answer to your questions about having a Guarantor for your car finance, please call us on 0800 1777 290 to speak to one of our expert Customer Advisors.

What is a Guarantor responsible for?

A Guarantor is responsible for the car finance payments if the main applicant defaults, and both parties' credit scores can be affected if the payment isn't received in a timely manner.

How can a Guarantor benefit my application for car finance?

Having a Guarantor with a strong credit file can open up more options for some applicants. Whilst it doesn't necessarily mean you can get a better rate, it does make the application more appealing to lenders offering lower rates, meaning the applicant will usually get offered better deals.

Who can benefit from having a Guarantor?

Young people and people with little or no credit history will see the most benefit from taking out car finance with a Guarantor. Check out the eligibility criteria for our Credit+1 Guarantor Loans to see if they may be the right solution for you. Another option is to apply for car finance with a joint applicant. Find out more about joint applications here.

Who can be my Guarantor?

In the vast majority of cases, a Guarantor will need to be a family member, friend or co-worker and will be of most use if the Guarantor has a strong credit file. Some lenders will only accept a mother or father living at the same address as a Guarantor, but that is not the case with the guarantor loans we offer at Creditplus, as we don't require the borrower and the Guarantor to live at the same address. For more information on the requirements of a Guarantor by specific lenders, talk to your Customer Advisor.

What credit checks are carried out on my Guarantor?

Lenders will carry out a full credit check on a Guarantor because they're responsible for the payments if the main applicant fails to make them. If you still have questions about taking out car finance with a Guarantor and what the responsibilities of the Guarantor are, please call us on 0800 1777 290 to talk to one of our Customer Advisors today.

Published: 16/05/2016
Last Updated:31/01/2019
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