Guarantors will need to be reliable lenders with a great history of making payments on time and in full, as they will be the one that undergoes a credit search during the application process. In most cases, we see guarantor having a close relationship to the applicant, often family members or close friends, as the guarantor will need to have a great deal of trust in them – if the applicant does not stick to their car finance repayments, it could lead to the guarantor losing out on their own money. In general, a guarantor loan will be used by someone who has previously been rejected for the desired credit arrangement and therefore needs the agreement to be based on the credit score of another trusted individual. Yes – Guarantor loans are a brilliant way to access car finance if you struggle with poor credit scores due to a rocky credit history! Of course, guarantor loans do come with many points to consider, particularly for the person who is to act as the guarantor in the agreement. You can find out more on our bad credit guarantor car finance packages below, or get in touch with us by clicking here!Ĭan you get car finance with a guarantor loan?
One of the most popular options for those who suffer with bad credit is guarantor car finance loans, which use a friend or family member as collateral against your loan – this means that they will be responsible for your payments should you fail to meet your obligations. Whilst bad credit can make it hard to find car finance, it does not mean that it’s impossible – there are many finance providers who tailor in bad credit car finance who will be able to assist you, tailoring their plans to meet your needs and financial situation. It’s a common issue for those with a poor credit history – the lower credit score means you appear as a higher risk to lenders, which can mean that they either increase the premiums on your monthly repayments to lessen their risk, or reject you entirely. If you find yourself burdened with a credit score that perhaps isn’t quite at the standard you’d like it to be, you’ve likely found yourself being faced with rejections when it comes to credit agreements with lenders for things such as car finance.
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