Low APR guarantor loans


A low interest guarantor loan from UK Credit is a simple way of borrowing the money you need with a little help from a friend or family member. Our rates start from just 29.9% representative APR and we are proud to offer some of the lowest rate guarantor loans on the market.

Most high street loans rely on an established credit rating to prove that you will make repayments on time. However, if you haven’t had the chance to build up your credit rating (perhaps you’ve never had to borrow before) or if you’ve had financial difficulties in the past, it can be tricky to get approved for credit. Here’s where a low APR guarantor loan can help.

Who can be a guarantor?

Your guarantor will need to have a good credit rating of their own and be someone who trusts you to make the repayments. Usually they’ll be a friend or relative. The guarantor will be aged between 21 and 70 when the loan starts, and they’ll need to be able to prove certain levels of income too. This is because we need to carry out affordability checks for both you and the guarantor – you’ll only be approved if you can both afford to make the monthly repayments.

Because your guarantor trusts you, we do too. As part of the deal, your guarantor agrees that they will make payments on your behalf if there is a reason why you can’t – just like a guarantor for a rental agreement.

Loan terms

A low APR guarantor loan from UK Credit can be repaid over anything between 18 to 60 months, depending on how much you want to borrow, and how much you can afford to pay back every month. The quicker you pay off your loan, the less you’ll end up paying overall but it’s not wise to try and pay back the loan too quickly if it stretches you financially.

Our rates depend on how much you borrow and whether your guarantor owns their home or rents; it isn’t affected by how quickly you can pay off the loan. If your guarantor is a homeowner, our interest rates start from 29.9% APR representative. If your guarantor is a tenant, our interest rates start from 39.9% APR representative.

What can I use the money for?

Guarantor loans can be used for whatever you need them for – unexpected home repairs, debt consolidation, weddings, holidays… It’s just a little something extra for when you need it.

When might a low interest guarantor loan be the right choice?

  • You’re paying very high interest on existing debt
  • You need some extra cash for something specific like emergency car repairs
  • You have a poor or unestablished credit rating

Finding the best guarantor loan

Whilst it might be tempting to apply for a guarantor loan with as many providers as you can, you’re much better off finding the right loan for you before starting the application process.

Shop around for a trustworthy guarantor loan company with lots of reviews and check the interest rates. Rates will sometimes depend on the status of your guarantor and whether they are a homeowner or a tenant. There are some loan providers who offer only one rate and tend to be more expensive.

UK Credit offer low APR guarantor loans which can save you money when compared with other providers, including Amigo.

How to apply

1. Find a guarantor

Once you’ve worked out how much you need to borrow and how quickly you can afford to repay it, you’ll need a guarantor with a good credit rating who is willing to co-sign the agreement. Check whether they’re renting or if they own their home as you’ll need this information before you apply.

2. Apply direct with UK Credit

We keep our process as simple as we can but we need to make sure you and your guarantor are suitable for a guarantor loan so there are affordability checks we need to carry out. We don’t want our customers to end up in financial difficulty and only approve loans if we are confident that the repayments are affordable for both the applicant and guarantor.

3. Receive your funds

Once approved, we pay the funds to your guarantor who will transfer them to you. You can use the money for whatever you need it for, whether it’s your dream wedding or to fix that leaky roof.