Guarantor car finance is a form of UK car finance that allows people with poor or no credit history to secure a loan by adding a trusted third party, usually your close friend or family member, who agrees to step in and cover your payments if you ever can't manage them yourself. By agreeing to cover your repayments, guarantor provides an additional level of security for the lender. Your guarantor becomes legally responsible for repayments if you cannot pay, which gives lenders confidence to approve your application.
Guarantor needs a good credit history and a stable income, because by signing the agreement they become legally responsible for the debt if you miss payments. It sounds like a big ask, but it's also what gives lenders the confidence to say yes when they'd otherwise turn you down.
Yes, you can, Carplus specialises in guarantor car finance, helping people with bad credit get approved when standard lenders have said no.
Guarantor finance exists specifically for borrowers struggling with bad credit and people with no credit history. Whether your history includes missed payments, defaults, or CCJs, a guarantor with a strong credit rating compensates for your bad credit score, directly reducing the lender's risk and increasing your chances of approval.
Guarantor loan works because lenders assess both your credit profile and your guarantor's together. A guarantor agrees to make payments if you cannot meet the terms of your finance agreement. Lenders approve applications more readily because this arrangement reduces their risk.
These estimates are subject to credit checks and may change when you apply for finance. this is for example purposes only
Maximum borrowable amount
Rates from 9.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status. Representative Hire purchase (HP) example: borrowing £7,000 over 5 years with a representative APR of 21.9%, the annual interest rate of 21.9% (Fixed) and a deposit of £0, the amount payable would be £185.33 per month, with a total cost of credit of £4,119.81 and a total amount payable of £11,119.81. We look to find the best rate from our panel of lenders and will offer you the best deal that you're eligible for. We receive a fixed fee commission per finance agreement, or we receive a commission based on a percentage of the total amount of finance taken. This will not affect the interest rate offered or the total amount repayable. Our service is free.
The most common reason is bad credit. If your credit history includes missed payments, defaults, or County Court Judgements, lenders see you as a higher risk. A guarantor with a strong credit profile directly offsets that risk and gives lenders the confidence to approve your application.
First-time borrowers and young drivers under 21 often face the same problem from the opposite direction — not bad credit, but no credit history at all. Without a borrowing record to assess, lenders can't predict repayment behaviour. A guarantor fills that gap.
Self-employed applicants with variable or irregular income can also struggle, even with a clean credit file. Lenders prefer predictable monthly income, and a guarantor with stable employment provides the reassurance they need.
Finally, anyone earning below a lender's minimum income threshold may find that a guarantor who meets those requirements unlocks access to finance they'd otherwise be declined for.
Guarantor car finance works similarly to any other loan: you borrow a fixed amount and repay it to the lender in monthly instalments over an agreed term. The key difference is that you're not solely responsible for those repayments. By adding a guarantor to your agreement, you give the lender a second source of security if you ever can't pay.
It is available as either Hire Purchase (HP) or Personal Contract Purchase (PCP). With HP, you own the vehicle outright once you make your final payment. With PCP, ownership only transfers at the end of the term if you choose to make the final balloon payment — otherwise you return the car or refinance.
When you apply through Carplus, we assess your financial situation and then match you with the most suitable lender from our panel based on your financial strength. The final finance agreement includes both names, making your guarantor legally responsible for missed payments.
It's worth knowing that if you do miss a payment, your lender's first step is always to contact you directly and work out a plan to get you back on track.
To apply with a guarantor to finance your car, you must meet basic lending criteria. We verify these details to match you with specialist lenders from our panel.
Your requirements
Vehicle criteria
When you get a quote through Carplus, we run a soft credit search on you. This gives us a clear picture of your financial situation so we can match you with the right lenders from our panel. A soft search is invisible to other lenders, so it won't affect your credit score.
Lenders set specific requirements to ensure your guarantor can cover monthly payments if needed. Your guarantor must meet these criteria before lenders will approve your car finance application.
Your guarantor must:
Meeting these requirements gives lenders confidence in your guarantor's ability to support your application. Car finance with a guarantor becomes accessible when your guarantor satisfies these eligibility criteria.
Your guarantor provides detailed documentation during your car finance application. Lenders use these documents to verify their financial strength and ability to cover repayments if you cannot make payments.
Your guarantor must provide:
Lenders assess this information to confirm your guarantor meets their eligibility criteria. Your application moves forward once they verify your guarantor's ability to support your monthly payments throughout the loan term.
Getting guarantor car finance follows a straightforward three-step process.
Step 1: Submit your application with guarantor details
Complete our online application form with your personal information and your guarantor's details. Carplus runs a soft credit search on you at this stage, which won't affect your credit score. Your instant quote displays your approved amount, monthly payments, representative APR, and total cost of credit.
Step 2: Guarantor verification and lender approval
Your guarantor will need to complete verification documents while lenders assess their credit rating and employment history alongside income and ability to cover repayments. This stage includes a hard credit search on your guarantor and confirmation of their financial commitments. Lenders typically provide final approval within 24-48 hours.
Step 3: Sign your agreement and collect your vehicle
Review your guarantor car finance agreement terms with your guarantor before both parties sign. Submit required documents including valid driving licence, proof of income, and proof of address from both you and your guarantor. Lenders release funds to the dealership once complete, allowing you to secure a car through collection or arranged delivery.
Compare and find the best car finance deals quickly and easily even with bad or poor credit. When comparing deals, you can also factor in the part-exchange value of your current car to reduce the overall cost.
Getting a finance quote with Carplus won't affect your credit score, but a hard search will be completed before completion of the deal
No-deposit car finance options are also available. Check your eligibility today with a soft search and find out what you qualify for.
Get your UK car finance decision in minutes. Check your eligibility first. Apply in confidence with Carplus
A guarantor is only needed when your credit profile doesn't meet a lender's standard requirements on its own. If you have a good credit history, stable income, and a clean borrowing record, standard car finance lenders will assess you on your own merits. You don't need a guarantor to secure car finance.
Joint car finance makes both applicants equally responsible for repayments from day one as a type of finance with shared obligations. Guarantor car finance only requires your guarantor to make payments if you cannot pay. The security of a guarantor provides backup protection without sharing vehicle ownership or primary payment responsibility.
You cannot change your guarantor easily once the agreement is active. Contact your lender directly to request changes. The lender decides whether to permit modifications based on their policy. Your new guarantor must meet all eligibility criteria and pass credit checks. Most lenders require a fresh application with updated terms.
Your guarantor agrees to make repayments if you cannot pay. They provide security that reassures lenders to approve car finance if your credit history shows problems or you have limited income. The guarantor only becomes liable when you miss payments. They bear no financial responsibility while you maintain regular repayments with good credit history.
You cannot withdraw as a guarantor once you sign the agreement without lender consent. You can only withdraw as a guarantor if the borrower finds a replacement who meets lender criteria. Your legal obligations continue as a guarantor unless the borrower repays the loan fully, refinances without you, or another guarantor or pays off the debt.
You become liable for the full debt if the borrower misses finance payments. Defaults damage your credit score and appear on your credit report. Lenders may pursue legal action against you for unpaid debt. Your ability to borrow decreases while supporting someone else's loan, which can influence future credit applications. Relationships suffer when payment issues arise.
Yes, guarantors undergo a credit check during the application process. Lenders assess your credit score and financial stability including income, employment status, and existing financial commitments. This check appears on your credit report. Lenders verify you can afford the repayments if the borrower defaults before approving the application.
Being added as a guarantor creates an initial credit check mark on your report. Your score remains unaffected if the borrower makes all payments on time. Missed or late payments impact your credit score because you become financially linked. Lenders see this association when you apply for credit yourself in future.
People financially linked to you through joint bank accounts, mortgages, or shared loans cannot act as guarantors. Anyone under 18 or over 75 fails age requirements. Those with poor credit scores, insufficient income, or unstable employment don't meet lender criteria. Lenders reject guarantors who cannot prove they can cover your repayments.
No. The term describes the loan structure, not guaranteed car finance approval. Lenders still assess both your income and credit alongside your guarantor's financial position. They reject applications when neither party meets their lending criteria. Approval depends on combined affordability and credit strength, not the guarantor's presence alone.
