Some car finance applicants can get better rates by having a Guarantor. We've answered some of the most frequently asked questions surrounding car finance with a Guarantor. If you can’t find the answer to your questions about having a guarantor for your car finance, please use our LiveChat functionality to speak to one of our expert Customer Advisors now.
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.
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.
Young people and people with little or no credit history will see the most benefit from taking out car finance with a Guarantor. Another option is to apply for car finance with a joint applicant. Find out more about joint applications here.
In the vast majority of cases, a Guarantor will need to be a family member – mother, father, aunt or uncle – 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. For more information on the requirements of a Guarantor by specific lenders, talk to your Customer Advisor.
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 use our LiveChat feature on the right hand side of this page to talk to one of our Customer Advisors today.
If you require further assistance, our team of Customer Advisors are here to help. We're open six days a week - you can view our opening hours here - and we're more than happy to answer your questions.