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When it comes to guarantor loans, not only is it important to figure out what company is best suited for you – it’s also vital to figure out who is the best guarantor. The truth is, it’s probably more important to pick a good guarantor first, as this may be the deciding factor to whether you are approved or not. Think about it from the perspective of your future lender: an individual with a qualified guarantor is more credible and trustworthy than an individual with a sketchy and unreliable guarantor. In this article, we are going explore who could be your guarantor and how to select the best option. As always, we will offer advice and tips along the way – are you ready?

What is a Guarantor?

Before jumping into how to pick a good guarantor, it would be important to understand exactly what a guarantor is and their responsibilities. A guarantor is simply an individual who promises and guarantees that a specific loan will be paid in full. Now, the guarantor is not the one who is opening the loan or responsible for paying the loan. In fact, the guarantor is only responsible for payment if the individual who opened the loan defaults and cannot fulfill the contractual agreement. It’s expected of a guarantor to have a good or great credit score and great financial habits. Reason being, a guarantor’s credibility is used to ensure the trustworthiness and creditworthiness of the borrower. If you have not heard of the word guarantor, perhaps you have heard a co-signer. These two terms are often used interchangeable.

The Options for a Guarantor

With a great understanding of what a guarantor is, you might begin drawing conclusions about the different types of individuals that may be considered an option for a guarantor. Truthfully, there are three main options, in our opinion. Without further ado, here are some candidates most worthy of consideration.

  1. Spouse – The first and most popular option that is available to many people is their spouse. If you can testify that your spouse has great credit, great financial habits, and positive reputation with the lender, they may be the best option for you.
  2. Family Member – A family member could always serve as a great guarantor. Since they are family, not only will it make the process of asking them to be a guarantor easier – they are also trustworthy.
  3. Friends – Perhaps a spouse or family member does not have the best credit score or meet the criteria for a good guarantor, the next person would be a friend. We do advise that, if you plan to ask a friend to be your guarantor, be sure you trust this friend. A guarantor should be an individual that you trust with your entire financial situation.

Traits of a Good Guarantor

With the information thus far, you understand what a guarantor is and the most popular options that are available to you. Now, before we continue, please keep in mind that, your guarantor may be someone outside of those options. However, the individual that you choose should possess the traits of a good guarantor. To better help you out, we have created a few tips and tricks to help you select the best possible candidate.

Willing and Desire

One trait that a good guarantor must have is the willingness and desire to help you secure the loan, and improve your credit. In our opinion, this is a crucial factor. An individual that is willing to help you with whatever your needs are will most likely hold you accountable and ensure you are financially stable. This ‘balance’ may prove beneficial during the entire payment process.

Good Credit

The reason why you might not be able to secure the loan you need is because of your credit score. In light of this, a guarantor is only good if they have a great credit score. You have to think about this from the perspective of the lender. If they denied you because of your credit score, they believe you are too big of a risk. With a guarantor with a great credit score, a lender will see that a guarantor with good credit trusts you and, therefore, the lender will be willing to take the risk. Again, this is at the expense of your guarantor’s credit line as well. With that being said, it’s vital to be responsible and make on-time payment.


The third trait that is required for a good guarantor is an individual that is trustworthy. The truth is, if you can’t trust an individual with your finances, do not ask them to be your guarantor. This is a significant financial decision and must be made with confidence. Be sure to evaluate the individual that you decide to ask and be sure you trust and believe in their word. Ask yourself: is this person trustworthy and will we be talking in the future? What does their income look like?

Traits of a Bad Guarantor

By now, you are probably painting a vivid picture of a few people that you are willing to ask. However, before you are quick to jump the questions, we thought it would be important to consider a few traits of a bad guarantor. While some individuals may match the above traits, there are a few other aspects to consider.

Average Credit

Above we discuss that good credit is a vital component of picking a good guarantor. In this, you might be wondering about individuals with average credit. The truth is, it’s rare that you will find success with a lender and a guarantor with average credit. In fact, since these companies will most likely be doing a hard-pull of their credit report, it actually may do more harm to their credit score. So, if anyone you know has average credit, claimed bankruptcy in the past, or holding a ton of debt, consider someone else. 

Outside the Country

Sometimes people have friends or family members that live outside the country. While can be a great vacation opportunity, this is a poor guarantor loan opportunity. Anyone who is living outside of the UK is not a great option, and lenders will not even consider that individual. We highly suggest sticking with people that have been living in a similar area for more than 3 years. This will hold greater weight in the lender’s eyes.

Picking the Best Guarantor

With the information you now possess, take the time truly evaluate all of the candidates that you believe may be worthy of being a guarantor. We highly suggest taking the time to sit down with these people and have a serious conversation. Brainstorm a list of important questions, some of which you may find in this article, and see how they answer. You will be grateful and appreciative at the loan signing table knowing that you took the extra effort to big the best possible guarantor.