When you’re short on cash in an emergency and are looking to borrow money for unavoidable expenses, it’s important to know all options available to you. Guarantor loans are one of the many ways you could be able to secure credit. It’s most common for people to apply for guarantor loans with bad credit or without enough information on their credit history for them to secure a loan independently.

On this page, we’ll talk through what you can expect with guarantor loans in the UK, how easy it is to find guarantor loans with low APR, and how they compare to short-term loans and other forms of credit. Hopefully, by the end we’ll shed a little light on whether this type of loan would be the right choice for you.

How much do you need?

£300 £1500

For how long?

Apply Now

Month 1


Month 2


Month 3


Month 4


Month 5


Month 6


This is for illustration purposes only. Your repayment schedule will be confirmed during your application

*All applications are subject to affordability checks*

Representative example: Borrow £300 for 3 months / Interest payable £154.38 / Total amount payable: £454.38 in 3 instalments / 3 payments of £151.46 / Representative 1299.7% APR / Interest rate 292% per annum (fixed) / Maximum APR 1625.5%

Compare short term loans on Clear and Fair

As a new customer the minimum repayment period is 3 months and the maximum is 6 months. Additional options may be available to you as a repeat customer.

Know Your Options Guarantor Loans

What Are Guarantor Loans?

Sometimes, when applicants have a low credit rating, lenders will look for ways to mitigate the perceived risk of lending to them. One way is to ask for collateral – this is a valuable asset that you sign over to the lender, which they will sell to recoup their losses in the event the repayments aren’t met. An example of this is the car being used as collateral in logbook loans. This is called a secured loan.

Guarantor loans are an unsecured form of credit. Instead of asking for collateral, applicants will need another person to co-sign the loan agreement. If they don’t keep up with the repayments, the guarantor will become liable to pay. Most commonly, guarantor loans are provided by banks and building societies, although there are also companies offering guarantor loans online. You can find guarantor loans from direct lenders as well as brokers – always check if you’re required to pay extra broker fees if you go with this option.

The application process for guarantor loans in the UK is largely similar to applying for credit independently. You’ll both need to provide personal and financial information on the application form, and you will both be subject to checks with Credit Reference Agencies and Fraud Prevention Agencies. It may take slightly longer to be approved for guarantor loans in comparison with other types, but there generally isn’t much in it.

Who Should Co-Sign Guarantor Loans for Bad Credit?

Guarantor loans in the UK create a financial link between the applicant and guarantor. Therefore, it’s important to choose a person that you trust – and they should trust you as well. Commonly, guarantors will be a family member or a friend, but there cannot be an existing financial link, so you cannot share any other type of credit, such as a joint bank account or mortgage, with your guarantor.

The guarantor must always have a good credit score – the higher their score, the more likely it is you’d be approved for guarantor loans with a low APR. They should be on a good income from employment, and able to cover the repayments of your guarantor loan for bad credit in the case that you cannot. The eligibility criteria for a guarantor will vary from lender to lender, so it’s important to check what their requirements are first.

Guarantor loans should really be considered only as a last option, if not only because of the risk involved of breaking down relationships if anything goes wrong. It’s vital that the guarantor is well aware of the ramifications involved before entering into a guarantor loan. If you do decide to go with a guarantor loan in the UK, it is advisable to contact credit reference agencies after it has been paid off to ‘de-link’ yourself financially from your guarantor. Otherwise, you and your guarantor would remain financially linked, and if either of you experience a drop in your credit score in future, it could still affect the other’s rating.

Credit Score

When Are Guarantor Loans Useful?

While it is important with all types of credit to only borrow what you can afford to repay, it is perhaps even more vital with guarantor loans for bad credit. If you default on guarantor loans in the UK, you not only risk damaging your own credit score, but your guarantor’s as well.

While a guarantor can help you get approved for a loan more easily, having them co-sign the loan doesn’t actually entitle you to the same lower interest rates they’d be eligible for on their own. Go Compare found that the representative APR on guarantor loans they looked at ranged from 24.9% to 69.9%, so if you want guarantor loans with low APR, it’s important to shop around.

Guarantor loans can be useful in some cases. For young adults who have very little recorded on their credit history, having a parent act as a guarantor on a loan can help them be approved for credit. However, most guarantor loans for bad credit, or no credit history at all, are still an expensive form of borrowing and are not suitable for use as a credit score builder. There are other options available, such as secured credit cards which are specifically designed for building credit histories – although they require a deposit, which is not always a good option if you are already short on cash.

As with any form of credit, you should only take out guarantor loans in the UK from a trusted provider. Ensure that the company offering guarantor loans for bad credit is authorised by the FCA, which you can check on the Financial Services Register. QuidMarket is authorised under license number 677995 and our company name Stagemount Ltd.

How Does QuidMarket Compare To Guarantor Loans?

At QuidMarket, we don’t offer guarantor loans. Our aim is to help hard-working people access the cash they need to tide them over in an emergency. We don’t require anyone else to get involved to do this.

  • New customers can borrow between £300 and £600*
  • Returning customers may be eligible to borrow up to £1,500*
  • Flexible repayment terms between 3-6 months
  • No guarantor required
  • QuidMarket is an FCA Authorised responsible lender
  • We’re a direct lender
  • We consider all levels of credit
  • Fully transparent, no hidden fees
  • Quick and easy online application
  • Decisions made by humans, not computers
  • Cash in your account as little as 10 minutes after approval

*Loan amounts and repayment terms are dependent on affordability checks

Make Informed Decisions

Guarantor loans aren’t for everyone. If you don’t like the sound of asking a friend or family member to risk their credit rating so you can be approved for credit, you can explore other options. If you’re looking for guarantor loans with bad credit, it might not seem like you have many choices, but you do.

At QuidMarket, we base our decisions on affordability. We look at your income and regular outgoings such as direct debits, other forms of credit like phone contracts and credit cards, and determine if you could sustainably afford the loan you need. If you can, and you meet our eligibility criteria and checks, we could be happy to approve your loan without getting a guarantor involved.

As a fully transparent, responsible lender, we encourage you to weigh up all your options and be confident in your decision – whatever you choose. If you need any more information about the loans we offer, contact QuidMarket and we’ll be happy to answer all your questions. If you’re happy to choose us as your lender, applying online is quick and easy.

Know Your Options Guarantor Loans

At QuidMarket, applicants are not required to provide a guarantor. Whilst many other lenders may decline you for being a sole applicant with bad credit, we differ in that we may still be able to help. Instead of focusing on your credit history and requiring someone with good credit to co-sign your application, we look at your affordability. If you have the disposable income to afford the loan repayments you want and are not in financial difficulty, we may be able to approve your request. You will still be subject to a credit check and assessment of your finances first, but we will not ask you to provide a guarantor.

With a guarantor loan, there is still a risk to the lender despite a second person signing the agreement. No form of borrowing is guaranteed to be maintained as financial difficulty can happen to anyone and circumstances can change quickly. At QuidMarket, we prefer to only provide loans to applicants who can afford it, so if you are someone with a bad credit history, this doesn’t mean you will be automatically declined. With careful assessment of your finances, and whilst working to responsible lending guidelines, we will determine if a loan is suitable for your circumstances.

Some lenders may charge a fee or higher interest when offering guarantor loans. This is because as the risk is higher, the lender will want to ensure they receive at least some of the funds in return. At QuidMarket, we do not charge any fees and the rate of interest is the same for all applicants no matter their affordability or credit history. You can see how much the interest charge will be when using our loan calculator. Just enter the loan amount and repayment term you want, and you’ll see what the repayments and interest will approximately be. Please note, the higher the value of the loan and the longer the repayment term the more interest you will pay. If you can settle a loan quicker, you will pay less interest overall.

We cannot approve a loan before having processed your application and conducted the necessary credit checks and financial assessment. Whilst we do not require a guarantor, this doesn’t mean we approve all applications. You will still need to prove you can afford the loan you want and that it won’t cause you further financial difficulties.

Warning: You should never pay upfront fees for a short term loan or send money in return for a short term loan. Late repayment can cause you serious money problems. For help, visit: www.moneyhelper.org.uk