Guarantor car finance
with bad credit

Can I get car finance with a guarantor?

Yes, you can get car finance with a guarantor, even if your credit history is bad. A guarantor car finance agreement allows someone with good credit—such as a trusted friend or family member—to help you secure approval by agreeing to step in if you’re unable to make repayments.

Some lenders even offer no deposit options, making it easier to get started without upfront costs. By keeping up with your repayments, you can improve your credit score over time. Representative APR rates begin at 9.9%, depending on your credit rating and the lender’s terms.

What are guarantor car loans?

Guarantor car loans involve a third party, such as a trusted friend or family member, who agrees to take responsibility for repayments if you cannot pay. This type of arrangement is designed to help people with bad credit access car finance by reducing the lender’s risk.

The guarantor provides extra security for the lender, which increases your chances of approval. If you miss a payment, the guarantor steps in to cover the amount owed, ensuring the loan agreement remains in place.

How does a guarantor work for car finance?

Guarantor car finance works much like any other car loan in the UK, but with added support. After you and your guarantor agree to the terms, you complete the application form. A specialist then reviews your request. Many lenders offer options with no upfront deposits or fees, making it easier for those with bad credit to apply.

Approval depends on factors such as your guarantor’s credit rating and employment history. Most applications are processed within 24 hours. Once approved, the lender provides the funds to the guarantor, who then transfers them to you to purchase the car. This process ensures that both you and your guarantor fully understand the financial responsibilities.

Do you need a guarantor for car finance?

You don’t need a guarantor for car finance if your credit score is good. Lenders are more likely to approve your application without asking for additional security.

However, if you have bad or no credit history at all, having a guarantor can improve your chances of approval. A guarantor strengthens your application by reducing the lender’s risk. They agree to step in and cover repayments if needed, making it easier for you to access car finance when your credit profile might otherwise hold you back.

What does a guarantor need to provide for car financing?

A guarantor must provide specific documentation to support the car finance application. This includes complete personal and contact information, such as a valid ID and proof of address. Lenders also require employment history and credit rating verification to assess the guarantor’s financial stability. If the guarantor owns property, they may need to provide ownership documentation as further assurance.

Here’s what a guarantor typically needs to provide:

• Personal identification (e.g., passport or driving licence)
• Proof of address (e.g., utility bill or bank statement)
• Employment history and income details
• Credit history for verification
• Property ownership documents, if applicable

These details help lenders evaluate the guarantor’s ability to manage the loan if the borrower cannot meet the repayment terms.

Who might need a car finance guarantor?

Young drivers with no credit history might need a guarantor to secure car finance, as lenders often view them as higher risk. If your credit rating is bad, having a guarantor can also improve your chances of approval by providing the lender with added reassurance.

A guarantor not only helps you get car finance but also gives you the opportunity to improve your credit rating. By making regular repayments, you can build a stronger credit history and enhance your financial standing while purchasing the car you need.

What will happen if I don't keep up with my car finance payments?

If you miss car finance payments, the finance provider will contact you first to discuss the situation. They usually allow a reasonable opportunity to explain and resolve payment issues. If the issue remains unresolved, the guarantor becomes responsible for covering the missed payments.

Here’s what typically happens:

• The finance provider contacts you to discuss the missed payment.
• You receive an opportunity to explain and arrange a solution.
• If unresolved, the guarantor steps in to cover the payment.
• Missed payments may impact your credit rating.
• The guarantor’s credit score and financial standing may also be impacted.

Can I be a guarantor with bad credit?

No, you usually cannot act as a guarantor with bad credit. Lenders require guarantors to have a good credit rating to ensure they can cover repayments if the borrower cannot pay.

As part of the approval process, lenders assess the guarantor’s financial history, income, and overall ability to manage the loan. bad credit often disqualifies someone from being a guarantor because it suggests a higher risk of financial instability. To qualify, guarantors need to show strong financial stability and a reliable credit profile.

Can I get car finance with a guarantor and no credit check?

No, credit checks are mandatory for guarantor car finance. Lenders assess both the borrower’s and the guarantor’s credit history to evaluate the risk and ensure eligibility.

At Carboom, we conduct a soft search during the initial assessment. A soft search does not impact your credit score and helps determine your chances of approval without affecting your financial profile. While a full credit check is required for final approval, our process ensures both parties meet the lender’s criteria before proceeding further.

How long does it take to get guarantor car finance?

Guarantor car finance approval usually takes 24-48 hours. The process includes submitting the necessary documentation, completing credit checks for both the borrower and guarantor, and finalising the agreement with the lender.

If lenders need additional information, such as proof of income or clarification of credit history, the timeline might extend slightly. You can avoid delays by ensuring all required documents are accurate and complete. Regular communication with your broker or lender also helps resolve issues quickly. At Carboom, we aim to process applications swiftly and keep you informed every step of the way.

What are the criteria for getting car finance with a guarantor?