No Guarantor

If you need a loan to cover your next vehicle, you may be looking for bad credit vehicle finance with no guarantor. Guarantors are often used to help people with poor credit histories obtain a loan, but they’re not always necessary. A guarantor may be needed if you’re unable to take out credit yourself, however there are usually other options available if you’d rather not ask a friend or family member to be your guarantor.

What is a Guarantor Vehicle Loan?

A guarantor is someone who agrees to make the agreed monthly payments if the borrower is no longer able to do so. A lot of lenders ask that your guarantor be a homeowner and earning a steady income. This is to ensure that they’ll be able to cover the cost of the loan no matter what. Generally, a guarantor would be someone close to you, who you trust. This is typically a family member, like a parent or grandparent.

In terms of a vehicle loan, a guarantor would need to speak with your finance provider before the funds are paid out. Just like you, your guarantor would have to sign the agreement, as they’d need to step in to make payments should something happen to mean you could no longer pay. If your guarantor has a better credit rating than you, this can increase your chances of loan approval. This is why guarantor loans are often a good option for people with bad credit.

Guarantor loans may also be taken out by people with a lack of credit history. If you’ve not taken out much (or any) credit previously, or if you’ve recently moved to the UK, you may not have a lot of information on your credit file. Lenders therefore can’t see how you manage your money. In these cases, a guarantor can be useful, as the finance provider can look at their credit history instead, and feel confident that the payments will be met.

Can I Get Vehicle Finance Without a Guarantor?

For most borrowers, a guarantor is not needed, even if they have a low credit score. Vehicle Finance Today often help customers with a poor credit rating, and the majority of our lenders won’t ask that you find a guarantor before approval. Bad credit doesn’t have to mean a guarantor – there are many other options available.

If you’re not sure whether you’re likely to qualify for a loan without a guarantor, you can use a vehicle finance calculator. This should give you a good idea of how much you’re able to borrow, and what sort of eligibility criteria needs to be met.

Bad Credit No Guarantor Vehicle Finance

Secured loans almost always have a higher approval rate for individuals with bad credit than unsecured loans. This is due to the fact that there is less risk for the lender. Vehicle finance is a type of secured loan, as the vehicle acts as collateral against the value of the loan. So even if you have a low credit score, you may still be able to get a vehicle loan without a guarantor.

You may not have checked your credit score before, so might not know what your credit rating is actually like. It’s generally sensible to check your score regularly, and see whether you’re able to boost it! You can check your credit rating for free via sites like Credit Karma and Experian.  And when it comes to improving your credit score, there are a few simple tips you can try out – check our Bad Credit Explained page for more information.

How to Apply for No Guarantor Vehicle Finance

If you’re looking to apply for a vehicle loan without a guarantor, there are just three simple steps! First, you’d need to fill in our online application – this shouldn’t take more than a few minutes to complete. Next, we’ll search our network of trustworthy lenders, and do our best to find an option that suits your requirements. As each application is assessed individually, even if you have bad credit, one of our lenders may still be able to help.

After a loan has been approved, you can approach any reputable dealer in the UK, and choose the vehicle you want! With Vehicle Finance Today, you can borrow between £3,000 and £100,000. You’ll then make monthly instalments to the lender until your term comes to an end – at this point, depending on your agreement, you’ll either own the vehicle outright or can choose to make a balloon payment to purchase the vehicle.

Pros and Cons of Guarantor Loans

If you’re not sure whether to apply for a guarantor loan or not, it can be helpful to consider the pros and cons. We’ve outlined the main points below, to allow you to make a decision that best suits you.


  • You may be more likely to be approved for vehicle finance with a guarantor
  • Guarantor loans are often a great option for people with poor or no credit history
  • You might be eligible to borrow more money if you have a guarantor
  • Once you’ve taken out the loan, if you make the due payments on time, you could improve your credit score


  • You would need to discuss your financial situation with your guarantor, which can be challenging
  • You may put strain on your relationship with your guarantor, especially if you’re unable to pay and they have to step in
  • The interest rates for a guarantor loan may be higher than other types of personal loan, as they’re often a solution for people with bad credit


Overall, whether you apply for a loan with or without a guarantor will depend on your individual circumstances. It’s unlikely that you’d need a guarantor for a vehicle finance agreement, but you may get a better rate if you do have one, so you might be open to the possibility. You can check your eligibility now, with no impact to your credit score, by completing our short application below!

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