When emergencies or unexpected costs crop up and leave you short on money, guarantor loans for bad credit are one option for getting things back on track.
Read about how guarantor loans in the UK work below, including their pros, cons and alternatives. With Dot Dot, you can apply online for £100 - £5,000 with no guarantor or security and could even have the money in your account on the same day as approval.
A guarantor is a second person who is committed to paying off a debt if you, as the borrower, become unable to make the repayments. Guarantor loans are designed for people with poor or non-existent credit history, as having a guarantor reduces the lender’s risk and makes them more likely to accept an application.
Both you and your guarantor will sign the loan agreement. After this step, guarantor loans work just like traditional personal loans: you’ll borrow an amount of money upfront, then pay it back in instalments. Your guarantor will only step in if you fail to make a repayment.
A guarantor can be a family member, friend or colleague who you trust and have a close relationship with. Most guarantor loan lenders don’t allow you to nominate your spouse or anyone who’s already financially linked to you, through a shared bank account for example.
While criteria can vary from one lender to the next, guarantors will usually need to:
The main appeal of poor credit guarantor loans is their accessibility if you don’t qualify for standard loans or have been rejected by a lender in the past.
You may be a young adult with no credit history whatsoever just yet, or someone who’s credit rating has taken a hit due to missed payments or other issues in the past. In either case, using a guarantor could increase your chances of being able to borrow money.
Another benefit of these loans is their speed. Guarantor loans for bad credit in the UK usually don’t take long to process, so you could get the money you need within a few days. This makes them helpful when dealing with a range of emergencies such as:
Even the best guarantor loans can place a significant burden on the guarantor and your relationship with them. Much like having a joint bank account, missing repayments on a guarantor loan will affect both your credit scores.
Your guarantor carries the risk of both having to repay a loan for you and harming their credit rating as a result. If things go seriously wrong, they could struggle to access credit in the future. It’s only natural that these events will have a negative impact on your relationship.
This dynamic can make finding a willing guarantor tricky. Some guarantor loan direct lenders have stricter rules than others regarding who can be your guarantor, reducing your options even further.
Guarantor loans aren’t right for everyone. Thankfully, some lenders will still consider your application without a guarantor - including Dot Dot. If you’re in a tight spot and need some extra money to help you out of it, you could apply through our website in minutes if:
If you don’t have an ideal guarantor in mind or would prefer not to use one, borrowing money with bad credit can seem impossible.
But we look at other factors that some traditional lenders don’t, like your income and outgoings, to give us a clearer idea of your overall financial situation. This means guarantor loans aren’t your only option – and having a bad credit score won’t automatically rule you out.
If you pass our initial criteria described above, we’ll still carry out credit and affordability checks to make sure your loan is manageable. We’re a responsible lender and do this to reassure both us and you.
Our loans are designed to ease the pressure when life gets difficult. We offer both short-term loans and long-term loans - and we don’t ask for a guarantor with either. You can apply online in minutes from the comfort of your home or even on the go. Here are the key details:
If you apply and we say yes, we’ll transfer your loan upfront and collect repayments automatically through Direct Debit. No guarantor, no hidden charges, no hassle!
Both tools will show you a breakdown of your potential monthly repayments and interest. If you go on to apply, you’ll get a more accurate idea of costs based on your situation. Whatever that looks like, we’ll agree on all your loan costs upfront and never charge any extra fees.
We don’t believe guarantor loans for bad credit should be your only choice when you need to borrow money in an emergency. Our loans can even be a better option. There are plenty of great reasons to choose us:
If an emergency has left you searching for a guarantor loan for bad credit, we could be able to offer an easier option.
Use our short-term loan calculator or long-term loan calculator to see how a loan could work with Dot Dot. You can then hit ‘Apply now’ to move on to our short application form. We’ll get back to you right away to let you know what happens next.
Short-term loans: 824.7% APR Representative Long-term loans: 79.4% APR Representative