Guarantor car finance

If you’re struggling to get car finance on your own, guarantor car finance could be an option for you. Read more about what guarantor car finance is and how it works below.

What is guarantor car finance?

Guarantor car finance is a type of car finance where someone else (the ‘guarantor’) agrees to step in and make your repayments on your behalf if you encounter difficulties in paying your car loan. In every other way, it is much the same as any other kind of car finance, just with an added safety net.

Guarantor car finance is a type of car finance where someone else (the ‘guarantor’) agrees to step in and make your repayments on your behalf if you encounter difficulties in paying your car loan. In every other way, it is much the same as any other kind of car finance, just with an added safety net.

A car with a check icon
A car with a check icon

Do I need a guarantor for car finance?

While guarantor car finance is not that commonplace these days, it can be beneficial if you have a poor credit history. This option can help you get approved for car finance more easily. In most cases,
people consider applying for car finance with a guarantor in the following situations:

If you are a young driver with no credit history

If you have bad credit and are unable to get approved for a loan by yourself.

In the world of finance, you can only build a strong credit score by borrowing money and then paying it back on time. If you have no credit history, your chances of getting approved for car finance may be lower because lenders might be cautious about extending credit to an unknown entity.


Before you decide to get a guarantor, you can check if you qualify for car finance through Oodle. Apply now, and you’ll receive an answer in just a few minutes.

In the world of finance, you can only build a strong credit score by borrowing money and then paying it back on time. If you have no credit history, your chances of getting approved for car finance may be lower because lenders might be cautious about extending credit to an unknown entity.


Before you decide to get a guarantor, you can check if you qualify for car finance through Oodle. Apply now, and you’ll receive an answer in just a few minutes.

How to get car finance with a guarantor?

Remember that if you fail to make payments, it can negatively affect both your credit and your guarantor’s credit scores. Therefore, it’s important to choose a guarantor who understands the responsibilities and is financially capable of covering the payments in case you can’t. Always communicate openly with your guarantor and the lender to ensure a smooth car finance experience.
With Oodle, you can easily check if you qualify for car finance without a guarantor. Apply now

Remember that if you fail to make payments, it can negatively affect both your credit and your guarantor’s credit scores. Therefore, it’s important to choose a guarantor who understands the responsibilities and is financially capable of covering the payments in case you can’t. Always communicate openly with your guarantor and the lender to ensure a smooth car finance experience.
With Oodle, you can easily check if you qualify for car finance without a guarantor. Apply now

If you need a guarantor to get car finance, you can easily follow these steps:

01

Find a reliable guarantor with good credit

02

Research and choose a lender that offers guarantor car finance

03

Prepare necessary financial documents, such as proof of income, employment details, and identification

04

Apply for car finance with the chosen lender

05

The lender will conduct a credit check on both you and your guarantor

06

Review and sign the loan agreement

07

Make timely payments to build your credit

guarantor application

How does guarantor car finance work?

With a car finance guarantor loan, you should be able to choose hire purchase or personal contract purchase finance in the usual way. You’ll then make the finance repayments on a monthly basis.


Typically, the loan is paid to your guarantor, who then releases it to you. It is your responsibility to then make your repayments directly to the lender, not to the guarantor. A guarantor car loan could be useful if you want to improve your credit score – if you make all your repayments without having to fall back on the guarantor for help, lenders will see that you are a reliable borrower.


It could help to boost your credit rating, too. A stronger credit rating can qualify you for better interest rates in the future.

With a car finance guarantor loan, you should be able to choose hire purchase or personal contract purchase finance in the usual way. You’ll then make the finance repayments on a monthly basis.


Typically, the loan is paid to your guarantor, who then releases it to you. It is your responsibility to then make your repayments directly to the lender, not to the guarantor. A guarantor car loan could be useful if you want to improve your credit score – if you make all your repayments without having to fall back on the guarantor for help, lenders will see that you are a reliable borrower.


It could help to boost your credit rating, too. A stronger credit rating can qualify you for better interest rates in the future.

With a car finance guarantor loan, you should be able to choose hire purchase or personal contract purchase finance in the usual way. You’ll then make the finance repayments on a monthly basis.


Typically, the loan is paid to your guarantor, who then releases it to you. It is your responsibility to then make your repayments directly to the lender, not to the guarantor. A guarantor car loan could be useful if you want to improve your credit score – if you make all your repayments without having to fall back on the guarantor for help, lenders will see that you are a reliable borrower.


It could help to boost your credit rating, too. A stronger credit rating can qualify you for better interest rates in the future.

Who can be a guarantor?

A guarantor is usually a close friend or family member who can afford to cover the repayments should you suddenly find yourself unable to. It gives lenders an extra layer of security to know that their loan is safe should you fall into difficulty.


Choosing a guarantor can be tricky. It’s a big financial commitment based on trust, so having a good relationship with any potential guarantor is vital. Generally, most guarantors tend to be parents supporting their children or other close family members or friends.


Similarly, if you have been approached to be someone’s guarantor, don’t feel pressured into doing so and never agree if you are not completely sure you can make the repayments in a worst-case scenario.

guarantor contract
A car with a check icon

What does a guarantor need to provide for car financing?

To qualify to be a guarantor, you must have a good credit history and a separate bank account from the borrower. Most lenders prefer guarantors to be over 21 and under 75, and many insist on
homeowners guarantors. If you agree to become a guarantor, you will need to provide:

Employment history details

Name, address, telephone number

Credit rating

Loan and debt management history

Details of any other guarantor loans you may be involved in.

Bear in mind that agreeing to be a guarantor for someone will result in a hard credit check on your own file – being linked to someone with bad credit will likely have a negative impact on your credit score.
Check if you are qualified for car financing without a guarantor in just a few minutes with Oodle. Apply now.

Bear in mind that agreeing to be a guarantor for someone will result in a hard credit check on your own file – being linked to someone with bad credit will likely have a negative impact on your credit score.
Check if you are qualified for car financing without a guarantor in just a few minutes with Oodle. Apply now.

Guarantor car finance FAQs

What are the risks of being a guarantor?

Being a guarantor is not without risk as it is a big financial commitment – the responsibility falls on you to shoulder the loan should the recipient be unable to pay. If you are a homeowner, in a worst-case scenario your property could be at risk of repossession if you find yourself unable to honour the agreement. Bear in mind too that if your relationship with the other person disintegrates, you will still be financially responsible until the loan is repaid in full.

Can being a guarantor affect my credit rating?

Being a guarantor could impact your credit rating as you are linking yourself to someone who likely has a poor credit score. On the flip side, being a recipient of guarantor car finance will probably improve your credit rating, providing you make all your repayments without having to lean on the guarantor.

What is a guarantor for car finance?

A guarantor for car finance is someone who agrees to take responsibility and make loan payments if you have trouble paying for your car loan. Usually this person is someone you trust or who is reliable, like a friend or family member, and also has a good credit score.

Can I get car finance with a guarantor?

The short answer is yes. But guarantor car finance is not very common these days, and we don’t offer it at Oodle, although some lenders do. An internet search should point you in the right direction.


However, if you can keep up with your repayments and pay your bills on time, you could improve
your credit score easily to get accepted for car finance without a guarantor. Learn more about how to improve your credit score here.

How else can I improve my credit rating?

If you’re a young person with no credit, or you have a poor credit history, there are things you can
do to turn things around:

● If you live in shared accommodation and everyone shares bills and pays on time, make sure at least one of the utility bills is in your name. This will show that you are reliable with money and will help to boost your credit score.
● If it’s possible, end any financial associations you have with anyone who you know has a bad credit rating, as theirs will negatively impact your own.
● Make sure you are on the electoral roll.
● Pay off any existing debts and keep your spending in check.


Learn more about credit scores or you can check if you qualify for car finance with Oodle in just a few minutes here