A Guarantor Loan is a lending option that enables those with a less favourable credit profile a way to get car finance. A third party (normally a friend or family member) acts as a guarantor (a person who provides a guarantee) to the lender, who agrees to continue paying the monthly repayments should the borrower find them-self unable to do so.
So, whether you have a limited/no credit history, or a poor/bad credit profile, a Guarantor Loan is an effective way of strengthening your application that helps improve your ability to secure car finance.
For best guarantor loan rates speak to one of our friendly car finance specialists by first completing an online application.
Step 1:
Complete a quick online application that does not affect your credit profile. Note: at this stage it doesn't matter if you haven't yet agreed on a guarantor, as we can help you decide who would be most appropriate to approach.
Step 2:
Once your application has been accepted a friendly consultant will make contact with you to discuss your requirements and options. They can advise on what makes a good guarantor and how/what information is required from them to act as your guarantor.
Your consultant will be dedicated to support you throughout the process and to ensure you're kept fully informed. Furthermore they will work hard to get you the fairest agreement that suits your individual circumstances.
Step 3:
Once you have agreed your loan terms your dedicated consultant can also help you find the car you want and work hard to get you the best deal across our trusted national dealer network.
If you have a limited credit history or a poor credit rating, a guarantor can strengthen your application and help you secure the finance you need.
Apply online today for a no obligation quote, without affecting your credit score.
Why get a Guarantor Loan?
A great solution if you’re struggling to get accepted for car finance on your own
Peace of mind - should your financial situation change, you have the support of your guarantor
An effective way to build your credit profile and improve your credit rating
The process of applying for a Guarantor Loan is just like many other loans, with a few key differences...
Apply online today for your free no-obligation quote.
The funds are initially transferred to your guarantor, and they must transfer the funds to you
You are responsible for making the monthly repayments directly to the lender
If you fall behind on payments, it's then the responsibility of your guarantor to ensure the loan payments are maintained
To be eligible for a guarantor loan you must be aged between 18-75 years old and hold a driving licence. While many finance options require a good credit rating, guarantor loans are designed for individuals with either a limited credit file or less-than-perfect credit rating. This means guarantor loans are normally widely available to individuals from all credit backgrounds, including those with bad credit.
You’ll also need a minimum of 3 months' employment history and proof of income, with no payday loans or short-term loan history within the past 3 months. If self-employed, you’ll need a minimum of 2 years' trading history. To discuss your eligibility with one of our car finance specialists, call us today on 0333 6000 290.
Your guarantor can be a close friend or family member aged between 21-75 years old, but cannot be someone financially linked to you, for example, a spouse. A good guarantor credit history is essential, and it also helps if they are a homeowner. If your guarantor isn't a homeowner - don't worry, Creditplus provide guarantor loans for non-homeowners too, however lenders will look more favourably towards those with homeowner status.
If your circumstances change and you find you’re unable to continue your monthly repayments, the responsibility of repaying your loan then falls to your guarantor. If your guarantor can’t maintain your monthly repayments, the lender may issue a CCJ against you and your guarantor.
Provided you’re able to maintain your monthly repayments, there are very few disadvantages to guarantor loans. However, if for any reason you are unable to maintain your repayments, the responsibility will fall to your guarantor, and this can have a negative impact on the relationship between you and your guarantor.
Your guarantor is there to protect you from defaulting on your loan but like with any type of loan – failure to maintain your monthly repayments will be recorded on your credit profile by the lender and may affect your ability to secure finance in the future.
To be eligible for a guarantor loan you must be aged between 18-75 years old and hold a driving licence. While many finance options require a good credit rating, guarantor loans are designed for individuals with either a limited credit file or less-than-perfect credit rating. This means guarantor loans are normally widely available to individuals from all credit backgrounds, including those with bad credit.
You’ll also need a minimum of 3 months' employment history and proof of income, with no payday loans or short-term loan history within the past 3 months. If self-employed, you’ll need a minimum of 2 years' trading history. To discuss your eligibility with one of our car finance specialists, call us today on 0333 6000 290.
Your guarantor can be a close friend or family member aged between 21-75 years old, but cannot be someone financially linked to you, for example, a spouse. A good guarantor credit history is essential, and it also helps if they are a homeowner. If your guarantor isn't a homeowner - don't worry, Creditplus provide guarantor loans for non-homeowners too, however lenders will look more favourably towards those with homeowner status.
If your circumstances change and you find you’re unable to continue your monthly repayments, the responsibility of repaying your loan then falls to your guarantor. If your guarantor can’t maintain your monthly repayments, the lender may issue a CCJ against you and your guarantor.
Provided you’re able to maintain your monthly repayments, there are very few disadvantages to guarantor loans. However, if for any reason you are unable to maintain your repayments, the responsibility will fall to your guarantor, and this can have a negative impact on the relationship between you and your guarantor.
Your guarantor is there to protect you from defaulting on your loan but like with any type of loan – failure to maintain your monthly repayments will be recorded on your credit profile by the lender and may affect your ability to secure finance in the future.
Your application only takes a couple of minutes and won't affect your credit score.
That's why we're rated 9.1/10 on Trustpilot
Jonathan Cross
Martin Dear
James Daniel Forrest
Facebook
Twitter
Instagram
LinkedIn
Youtube