Published: 22/07/2021

Guarantor Loans

Guarantor loans

Getting a loan with competitive rates can be difficult if you have a bad credit score. This where a 1Plus1 guarantor loan could help if you have bad credit.

Past credit problems can make it tough to get a loan in your own name, especially if you have a bad credit score.

What’s a guarantor loan?

Taking out a loan with someone else who agrees that they will step in and pay off the loan if you're unable to do so is a possible solution.

This is known as a guarantor loan and the person who promises to pay your loan, known as a guarantor, is usually a family member although it can be a friend.

How do I apply for a guarantor loan?

You supply the details of someone who will pay off your loan should you default on your payments, when you apply for your guarantor loan

At 1Plus1, this means we can offer you lower interest rates than may be offered elsewhere.

We only call on the guarantor as a last resort. They’re not normally involved in repayments.

Who can be your guarantor?

A close friend or family member who trusts you to keep up with your repayments can be your guarantor, but it can be anyone.

They can be related to you, but not financially linked to you. So, it can’t be your spouse.

Typically, guarantors are aged over 21 with a good credit score.

A credit and open-banking check is completed to confirm that they have a good credit score. They may have to provide, proof of address identification, and other details.

It helps if they are a UK homeowner too.

Rebuilding your credit score

Making all repayments of your 1Plus1 guarantor loan can help rebuild your credit score. In the future it may make it more probable you'll be accepted for mainstream unsecured loans and credit cards  with lower rates of interest.

Whilst borrowing and repaying money can help to rebuild a poor credit score, it will only help if you borrow in a sustainable manner and can meet all your repayments on time.

If you're not sure about credit score it’s worth your time to check your <ahref="">credit report before applying for any form of credit. It may be better than you think. You can also find and fix any problems on your records.


Importantly, make sure you have a good relationship with your guarantor and that they understand the risks involved.

If the unlikely event you default on your payments, they could end up having to make your repayments. If you have poor credit, make sure you only borrow responsibly, well within your repayment abilities, and gradually work up to borrowing larger amounts.

1Plus1 guarantor loans offer loans ranging from £1,000 to £10,000 but, think about how much you are borrowing and why.

If you're struggling with your existing debts a consolidation loan with 1Plus1 may help you.

All loans are subject to meeting credit worthiness and affordability criteria

If you think you may be interested in a 1Plus1 Loan, please give us a call on 0330 1200 313 and one of our friendly staff will be more than happy to discuss the process with you, or start your application here.