Guarantor loan for bad credit and on benefits?

[Deleted User]

Can you get a guarantor loan if you have a poor credit rating and in receipt of universal credit (with the incapacity to work element included)?  

Sea_Shell

As I understand it, Guarantor loans are dependent on the credit worthiness of your guarantor, rather than yourself.  That's sort of the point.    They are lenders of last resort in most cases.

Do you have a guarantor in mind, and are they happy to repay the loan (plus interest) in full, if you can't?   As they WILL be pursued if you can't (or don't) repay.    

Are they in a position to actually lend (or better still, gift) you the money you need and keep things as a private matter between you?

Are you prepared to risk your relationship with this person?


You might be better posting over on the Debt boards if you are struggling to manage your income/expenditure.

[Deleted User]

If someone is stupid enough to be a guarantor (as they really are stupid - the only people who need guarantor loans are ones at high risk of not repaying) then they should get a loan for you at a low rate and then you pay them back - either way they will be paying the loan back but better 3% from the high street than 50% with Amigo or whoever

Dobbibill

If you are willing to share why you need the loan, the good forumites here may have alternative ideas for you.

Really consider if you were to secure a loan, would this be affordable out of your UC income and if it is, could you start saving this amount to build up the amount you want/need.  

MEM62

Deleted_User said:

Can you get a guarantor loan if you have a poor credit rating and in receipt of universal credit (with the incapacity to work element included)?  

If you are at the point where mainstream lenders will not consider you then you are at the point where you need to stop borrowing.  Most who do not get the message just dig deeper holes for themselves and those who a unfortunately unwise enough to stand a guarantors.      

EssexHebridean

Hi OP - is this a consolidation loan? If so please be aware that consolidating debt has a close to universal failure rate. 

Regardless though - it would probably be a good idea for you to post over on the Debt Free Wannabe board to get advice.