Which Payday Loan is

best for people with

Bad Credit?

We at FinanceJar will find the plan to best suit your needs!

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Payday Loans

Personal Loans

The best unsecured loans on the market.

Payday Loans

Payday Loans

Short term loans at their finest and easiest.

Payday Loans

Logbook Loans

Great when you want to change your vehicle.

Payday Loans

Guarantor Loans

A helping hand is always appreciated.

Bad Credit Loans UK Guarantor

Having another person who can guarantee your loan is one way to increase your chance of getting approved even with a bad credit. Like secured loans, a guarantor loan provides security against the credit in a form of another person. No asset will be put at risk – instead, the other person is obliged to repay the loan in case the principal borrower defaulted.

A bad credit loans guarantor is advantageous especially to those are rejected by banks and traditional lending facilities. Those who have a bad credit rating, have no credit history or have low income can benefit from this. This also reduces the interest rate that lenders apply to bad credit borrowers.

Lenders ask for lenient requirements when it comes to their borrowers; however, they are strict when it comes to their guarantor’s prerequisites. Almost anyone can be your cosigner as long as they are not financially linked to you, thus a spouse is not eligible. Below are some of the criteria that your guarantor must meet:

  • The guarantor should be 21 years of age and above; he should be financially matured to ensure that he can handle the responsibility of repaying the loan.
  • The guarantor should be a UK resident or citizen. The lender and the borrower should be from the same country so that they can answer each other’s concern should there be a problem.
  • The guarantor should meet the lender’s minimum required income. He should be able to handle the debt in case the principal borrower stopped repaying the loan.
  • The guarantor should have a clean credit report. They are required to have good or excellent credit remark and have never committed bankruptcy, arrears, late payments, CCJS, defaults, and the like.
  • The guarantor should have his own working bank account. He should allow the lender to check his bank details and other financial documents.
  • The guarantor must be a homeowner. Although having a property is optional, this can increase their chance of getting qualified.

The role of the guarantor is not really complicated as long as the borrower will not fail to follow the loan’s terms and conditions. Thus, the guarantor should know his obligations and liabilities. It is your role to help the guarantor understand everything before he puts his signature in the contract. After all, he will be the one who will vouch on your behalf to be approved. He will confirm your identity to the lender and will guarantee the loan in case you are not able to repay it anymore. Both of your credit ratings will be affected if both of you defaulted on the loan. Worse, the collateral surrendered may be repossessed by the lender legally.

Bad Credit Loans No Guarantor

Guarantor loans are somehow risky in terms of the relationship you have with the guarantor. Before agreeing to become your guarantor, the other person puts his trust in you. The moment you stopped repaying the loan, you have put a strain on your relationship. So, if you want a less complicated loan, you may look on to these options:

–    Credit Unions

Like banks and traditional lending facilities, these establishments provide loans to borrowers. However, the interest rate they offer is cheaper since they are not privately owned; rather, it’s possessed by their own members. Apart from the better rates, they are known for being more understanding and considerate.

–    Credit Cards

A credit card is known for the fast cash assistance it provides. It can be used to resolve urgent expenses and sudden bills like groceries, school fees, and utility bills. However, it’s interest rate is very expensive so it should be taken as a last resort.

–    Payday Loan

Also known as cash advance loans, payday loans are popular especially when it comes to instant cash. Some payday lenders do not conduct a credit check and in case they do, they only use the borrower’s credit remark to determine the loan amount and interest rate of the loan. However, despite its convenience, the loan carries a very expensive interest rate.

–    Peer-to-Peer Lending

The new lending platform has just recently hit the market. Compared to banks and private lenders, peer-to-peer lending (P2P) applies smaller charges and minimal requirements. Only a few people have heard of it so if you want to try borrowing money from them, you can do so by searching online.

–    Bank

Borrowers who have established a good reputation with their banks can take advantage of this. Simply ask your banker if they offer a program for their clients. Chances are, you’ll be given a cheaper, more flexible credit.

Bad Credit Loans Direct Lender

A direct lender offers a less complicated, cheaper option to those who have a bad credit rating. However, it’s not easy to find the right lender who will accept your condition, thus it’s best to take enough time researching. Despite the options you have, it is limited and expensive. Having a good credit score is still better as this gives you a more bargaining power. Lenders usually provide a lower interest rate and a bigger amount to those who have impressive credit scores.

Bad Credit Loans: Bad Credit Loans Instant

If you need a bad credit loan, the fastest way to acquire it is by going online. Licensed lenders have provided an online application form for their clients that they can complete in less than 5 minutes. After submission, a verification call will be conducted and once approved, the fund will be transferred directly to the debtor’s bank account.

Bad Credit Loans Bad Credit

If you’re suffering from a bad credit remark, the best way is to fix it as soon as possible. To start, you may ask for a free copy of your credit report and check it for any inaccuracies. Make sure that every details/account entered into your report is correct; otherwise, contact the credit bureau immediately. Another way is to settle your current accounts. It takes time but every time spent is surely worth it especially if you’re planning to make a new line of credit.



Representative 305.9% APR.
Representative example: £400 borrowed for 90 days.
Total amount repayable is £561.92 in 3 monthly instalments of £187.31.
Interest charged is £161.92, interest rate 161.9% (variable)

Warning: Late repayment can cause you serious money problems. For help, go to moneyadvice.org.uk.


FinanceJar is a credit broker and not a lender. We pass your information to a lender once you have been accepted for a plan. We take a fee from the lender only, once you’re approved and we do not add charges to your plan in doing so.