What is a guarantor loan?
A guarantor loan is a type of loan you take out with someone else – usually a family member – who promises to pay your debt if you’re unable to. This person is referred to as the guarantor.
How do guarantor loans work?
Guarantor loans are an alternative option for people who might otherwise struggle to get a loan, often due to a poor or limited credit history. The guarantor acts as a safety-net for your lender, so if you default on your repayments they’ll still get their money back.