At My Car Credit, we understand that affording a car can be a challenge. A Guarantor Loan, where a third party agrees to pay your loan if you can’t make repayments, provides an alternative method of taking out car finance. A Guarantor Loan is a big responsibility so it’s important you understand everything that’s involved in taking one out. Here’s everything you need to know about applying for a Guarantor Loan.

How it works

A Guarantor Loan is the same as a normal loan and you are still responsible for making the agreed repayments. However, it also allows for a third party (normally a family member) to guarantee your lender the repayments (in case you fail to make them).

Picking a guarantor

Your guarantor can be anybody between the ages of 18 and 75 with a regular income – they don’t necessarily have to be a homeowner, but this would greatly increase your chances of being accepted. Due to the nature of a Guarantor Loan, it’s a good idea to make sure that your guarantor is somebody who trusts you to make the repayments, as well as somebody that you have a good relationship with. Being a Guarantor is a big responsibility – in the eventuality that you cannot meet your repayments, your Guarantor would be liable for the debt instead. Most people tend to ask a member of their family or a very close friend.

What they’ll need to provide us

Your guarantors will have to go through the same checks and processes as you – they will need to provide their employment and financial history (i.e. income, bank statements, bank details), their proof of ID, and potentially other documents, dependent on the lender’s criteria. This is a standard procedure to reassure the finance lender that your guarantor is a suitable choice.

Once you and your guarantor have been accepted and all the boxes have been ticked, most Guarantor Loans are paid out to you within 48 hours.

Additional advantages

The security of a Guarantor Loan for the lender means that you may be offered a lower annual percentage rate (APR) than you could obtain elsewhere. An APR is the money you have to pay in interest for borrowing money from a lender.

A Guarantor Loan means that you can build and improve your own credit score for the future, because (in theory) you should always make the monthly payments. This means that your chances of being approved for finance will be improving as you go along.

Choosing to take a Guarantor Loan can make it more likely for you to be accepted for car finance. Put simply, this is because having a guarantor makes you a much safer bet for a lender. It gives them a reliable back-up option that they can approach for payments.

What happens if you fail to make the repayments?

Failure to make your monthly repayments will mean that your Guarantor will be liable instead. They will be expected to make the monthly repayments on your behalf. Should they also fail to make the repayments, both of you could be issued with a County Court Judgement (CCJ). This will impact both your credit profiles, as well as affect your abilities to obtain credit in the future.

A Guarantor Loan can be a good solution for certain circumstances but it’s important to remember your obligations to both your Guarantor and the lender.

Ready to take the next step?

If you feel that a Guarantor Loan is the best option for you, why not call one of our Guarantor Loan specialists at My Car Credit – they will be more than happy to help you through the quick and easy process. Or click and apply here with My Car Credit to see if you are eligible.

Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating


  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed


  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs


  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit


  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past


  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan

X monthly repayments of

Typical rate

Loan amount

Total payable




*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.86%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702.00, total amount payable is £9,202.00.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!