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Guarantor loans explained

If you need a loan but you have a less than perfect credit history, you may want to think about a guarantor when taking out a loan. However, if this is not something you feel comfortable with, there are some types of loans that don’t require a guarantor, which you can find in our loan guide.

What is a guarantor?

A guarantor is a person who agrees to make the required repayments towards someone else's debt should they find themselves unable to do so. Usually, a person will have to be employed to qualify as a guarantor, and often they are a close friend or family member of the borrower. Say, for example, you took out a loan for £400 and had a guarantor but then lost your job and found yourself unable to make your loan repayments. Your guarantor would then be responsible for making the payments instead of you as they would have signed an agreement to do this.

What is a no guarantor loan?

A no guarantor loan is a loan that does not require you to have a guarantor. This means that no other person is responsible for making your repayments if you find yourself in difficulty. This is useful if you do not think that any of your friends or family would fit the necessary criteria to be a guarantor, or if a guarantor is not an option you want to consider.

Pros and cons of loans with no guarantor

A loan without a guarantor means that you can get the credit you need without asking favours from other people and you can remain in control of your own finances. This type of loan often charges higher interest rates because the lender is taking more of a risk that they might not get their money back.

You don’t need a guarantor to take out a Morses Club loan, we offer cash loans between £100 and £400 to new customers, apply online and see if you’ve been initially approved in minutes.

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Existing customers can borrow between £100 and £1500 subject to approval.