What-is-a-guarantor-loan
A guarantor loan is where the applicant could be suffering from a very poor credit history and have a number of defaults or ccjs or even arrears from a mortgage, loan or credit card. A guarantor loan means that the applicant applies in the normal way but that the credit check by the lender is done on the guarantor, the person with a good credit history who "guarantees" your loan application, akin to vouching for your ability to repay the loan.
The applicant still makes the monthly payment for the term of the loan but if there are any problems with the repayment then it is up to the guarantor to ensure payment is made. For a guarantor loan the guarantor is liable for the debt, not the applicant.
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