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If you have heard about guarantor loans but you aren't too sure what they are or what they entail, we are here to help. A guarantor loan is a loan where a friend, family member or work colleague, that knows you and trusts you, will act as a guarantor for you. This person provides the lender with confidence that, if any unforeseen circumstances were to arise preventing you from making your repayments, the loan payments will be met by your guarantor.

This means that a guarantor loan is a financial agreement which is conducted between a lender, a borrower and of course, the guarantor. One of the best things about a guarantor loan is that it is suitable for people who have been refused credit it in the past or have a 'not so good' credit rating.

We are able to offer guarantor loans for values between £1,000 and £7,500 with a representative APR of 49.9% to UK residents. These loans are repaid in fixed monthly instalments for a period of between 12 months and 60 months.

The application process is a simple one and can be carried out online.

A guarantor is simply someone that knows you, who has trust in you and who has awareness of the financial situation you are in. Examples of the people who can act as a guarantor for you include:

• Brothers / Sisters
• Extended family members
• Friends
• Grandparents
• Parents

However, you don't just need to choose family members, you could choose a colleague or an employer who is willing to vouch for you and act as a guarantor. This means that you should look to be as honest with the person as possible about your finances because there is a large level of responsibility placed on the guarantor.

Yes, there are some criteria that a guarantor has to meet, including:

• They need to be 18 years old or older
• They need to hold a UK bank account
• They need to hold a valid UK debit card
• They need to have a good credit history
• They cannot be subject to an existing bankruptcy order or IVA
• They must be a resident of the UK, excluding the Channel Islands or the Isle of Man
• Earn a minimum income of £1,000pcm after tax
• They need to be sure that they can meet the loan monthly repayments should you have trouble.

Once the lender has received all of your details, they are able to make a decision on your loan in minutes. They will then email contracts to you and your guarantor. If you are happy and agree the terms the funds for the loan will be sent directly to the account of the guarantor, normally within 48 hours of receiving the relevant information.

• You have to be 18 years old or older
• You need to hold a UK bank account
• You need to hold a valid UK debit card
• You need to make sure you can make the repayments
• You must be a resident of the UK, excluding the Channel Islands or the Isle of Man
• You cannot be subject to an existing bankruptcy order or IVA

It is important to avail yourself of the application process, initially that means that you will need to find a guarantor. The next stage is to complete the simple on - line application which must be submitted to the lender.

Once the application form has been completed and submitted, the assessment process begins. Firstly, the lender will ensure that all of the information contained within the application is accurate. If accepted, the lender may request further information or documentary proof of statements you made. The lender will then make you an offer, which if accepted will lead to funds being released into your guarantor’s account.

You will need to find a new guarantor and then submit these details to the lender. You will not be asked to fill in your details again, just the details of the new guarantor.

There are many reasons why you may be declined for a loan, which include:

• An IVA or bankruptcy
• Being too much in debt
• Being unable to afford the repayments
• You have taken out a loan recently
• You do not satisfy the minimum risk criteria
• You have an existing loan that has been open for long enough

The lender may use the information you provide to check its records in order to determine whether you have previously applied for a loan. Your information will also be used by the lender to determine your credit status, as will the information provided by the guarantor. These checks will only be carried out when the application process is complete.

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