Who Could Be a Guarantor For My Loan?


Who Could Be a Guarantor For My Loan?

Having a good person to be the guarantor of your loan is essential to maximise your chances of approval.

A strong guarantor is important to the lender, because it offers confidence that the loan will be repaid and reduces the risk of default. This can even be the case if your own credit history is less than perfect, because the success of your application is weighted hugely on the quality of your guarantor.

A good guarantor is usually:

  • A family member, sibling, parent, spouse or close friend
  • Someone with good credit (the better the credit, the more likely you will be approved)
  • Someone who is over 25 years of age
  • Someone who is a homeowner, although tenants also accepted
  • Someone with a stable job and income

A guarantor can be a family member, friend or colleague


It is possible to choose a relative, friend or work colleague to be your guarantor. It is also possible to put forward your partner (wife or husband), providing that you have separate bank accounts. It is vital that whoever you put forward to completely aware of the loan you are applying for and what happens if you cannot make the repayments.

Always make sure you have had an in-depth conversation with the person you would like to be your guarantor before naming them on any loan application you make, so that they are fully aware of the responsibilities of being a guarantor and whether they are willing to be apart of it.

A person with a good credit score


The likelihood of having your application accepted for guarantor loans will be someone who has a strong credit history. This is because the lender feels more confident knowing that your loan is backed up by someone who has historically paid off other loans and credit cards on time.

But what are the characteristics of someone who has a good credit score? They are typically someone who has a history of making prompt repayments for credit on time, and this includes homeowners, as they have had to demonstrate creditworthiness in most cases in order to get a mortgage. A car owner may also be another indicator as this person has usually had to make monthly repayments for the vehicle, which is similar to paying off a loan.

Over the age of 25


The age of the guarantor is usually a minimum of 25 by most guarantor lenders. This is to reflect the added responsibility of being a guarantor and how someone who is 25 might have more experience and have built up more of a credit history, which they can use to predict future behaviour.

There may also be a maximum age for your guarantor such as 70 or 75 – but this will depend on the lender you apply with.

Stable job and income


Guarantor lenders like to see guarantors that have a regular job and can afford to make monthly repayments if the main borrower defaults. A potential guarantor may be required to show proof of income via a payslip or bank statement – and some professions may be favoured over others.

Who would not be a good guarantor?


Not everyone makes a good guarantor, and this is something you need to keep in mind when making an application. Things to look out for include:

Someone with bad credit or no credit


If both you and the guarantor you have chosen has bad credit, it may affect your chances of being successful and provide less confidence that your loan will be repaid on time. In terms of someone considered to have a bad credit history, this may include some who has previously been bankrupt, or has a CCJ or IVA on file.

Equally if the person is too young or has no or very limited credit history, this is not enough for the lender as an indication of creditworthiness.

A person living abroad


Unfortunately, if you pick a guarantor who lives abroad on a permanent basis, or has lived in the UK for less than 3 years, then it is highly unlikely that they will be considered by the  lender, as they appear to be harder to contact and therefore hard to recover potential missed payments in the future.

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